Tesla Buys SolarCity For $2.6 Billion, Suggests It Will Build EV Semis
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Tesla CEO Elon Musk recently announced his intent to purchase SolarCity Corp. for $2.6 billion in shares. This is the latest step in Musk's "Master Plan Part Deux," which called for Tesla's automotive arm to merge with the solar panel installer to create a one-stop shop for consumers looking to upgrade to a more sustainable lifestyle. Musk also serves as the chairman for SolarCity, and is the biggest shareholder in both companies.
Under this new agreement, Tesla would hold 93.5 percent of the combine companies, while SolarCity would hold 6.5 percent. The deal is expected to be approved in the fourth quarter of this year. SolarCity would then become a subsidiary of Tesla
Musk believes that through the merger of the two companies, it will be easier for consumers to become more sustainable. They would be able to install SolarCity solar panels on their house, which would supply power to a Tesla battery, which might help power the Tesla car charging in their garage. The Tesla batteries that would come out of Musk's newly-opened, $5 billion gigafactory in Sparks, Nevada are a central piece of this deal.
Musk's "Master Plan Part Deux" arrived along with a surprise suggestion: a heavy duty Tesla electric vehicle semi. Tesla isn't the only company going after this market; Wrightspeed, Proterra, and BYD are already building heavy duty urban electric vehicles, and Mercedes-Benz is about to enter the fray. The Nikola Motor Company (no connection to Tesla Motors) already has 7,000 orders for a zero-emission heavy duty freight hauler that won't be revealed until December.
Even though heavy duty vehicles only account for about eight percent of U.S. carbon emissions (light duty vehicles make up roughly 20 percent), Wrightspeed CEO Ian Wright says electrifying that sector makes economic sense.
Proterra CEO Ryan Popple thinks the Tesla Semi could actually be more of
an internal project, enabling the company to operate a zero-emissions
supply chain.
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