Tesla acquires $2.8bn stake in SolarCity

The car manufacturer, Tesla Motors is set to prove that electric cars could be better than gasoline-powered cars.
Part of the moves made by the car producer towards attaining the feat is the offer made by Tesla to buy the solar installation firm, SolarCity Corp in a stock deal worth as much as $2.8 billion.

The Chairman, SolarCity and CEO of Tesla Motors, Mr. Elon Musk, who sought to build a clean energy powerhouse as his electric car maker, said if the is process completed, “we believe that a combination of Tesla and SolarCity would provide significant benefits to our shareholders, customers and employees.”

Musk, who owns 19 per cent of Tesla and 22 per cent of SolarCity, said he would excuse himself from voting on the deal. He could not say how soon shareholders could vote on the deal, as due diligence needs to take place first.

Musk, while speaking with Reuters was quoted as saying: “We would be the world’s only vertically integrated energy company offering end-to-end clean energy products to our customers. This would start with the car that you drive and the energy that you use to charge it, and would extend to how everything else in your home or business is powered.”

Read also: N50bn debt: Jimoh Ibrahim dares AMCON to touch his properties

He stated that with instant torque, incredible power, and zero emissions, Tesla’s products would be cars without compromise. “

Each new generation would be increasingly affordable, helping the company work towards its mission to accelerate the world’s transition to sustainable transport.

Musk, who is also the largest shareholder of both companies, described the deal as a “no brainer” in a call with reporters. The company could sell customers an electric car, a home battery and a solar system all at once, he said.
Instead of making three trips to a house to put in a car charger and solar panels and battery pack, you can integrate that into a single visit,” Musk told reporters.

Although it is the U.S. market leader in residential rooftop solar systems, it regularly posts quarterly losses and the stock has fallen nearly 60 per cent so far this year, pummelled by investors who see its business model as too complex in a market that has become increasingly competitive.

While the innovation at Tesla may seem years away from the consumption trend in Nigeria, industry watchers contend that there could be a trickle-down impact sooner than expected.

The automotive industry in Nigeria still remains largely driven by Premium Motor Spirit (PMS).

RipplesNigeria …without borders, without fears

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now