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Tesla Motors Acquires SolarCity

Tesla Motor’s announcement to acquire SolarCity was met with mixed emotions on Tuesday, June 21. Tesla proposed to buy all of the common and outstanding stock, a purchase that could cost as much as $30 billion dollars. A purchase that has investors worried.

After Tesla made their announcement their stock dropped 10%. Investors are unsure why Tesla would want to acquire a company that seems to be outside their wheelhouse. But Elon Musk has plans to expand Tesla and that means: it could be much more than just a car company.

Musk sees Tesla Motors being a trillion dollar company and in order to do that Tesla is going to have to expand. The $30 billion bill of acquiring SolarCity, coupled with the loss of 10% of the company’s stock, seems like a steep price now but could be just a drop in the bucket compared to the growth Tesla is going to make in the next few years. This leaves the question “where is Tesla going to grow?”


The addition of SolarCity shows that Tesla’s vision is expanding to be more inclusive about areas that can use renewable energy. First Tesla started by trying to put more energy-sustainable cars on the road, and now they are targeting where people spend more of their energy: the home.

Tesla wants to try to make more areas of life energy-sustainable. Potentially a person could drive their electric Tesla car and go to a home powered by solar panels from Tesla. Instead of smart homes we could very well be looking at Tesla homes.

This acquisition could help Tesla in more ways than one. SolarCity has built their own super factory to make more solar panels. These panels could help Tesla make more charging stations, or take it a step further and focus on making whole towns energy sustainable. These possibilities keep in line with Tesla’s vision to make more areas energy sustainable.