In a not-a-surprise move, Tesla offered to acquire SolarCity; a leading American solar energy provider. As stated in a letter submitted to the CEO Mr. Lyndon Rive and his board of directors.
As some may know, Elon Musk is the cousin of the founding members, Lyndon Rive now CEO and Peter Rive now CTO of the company. Elon has helped push the idea to his cousins back in 2006.
Each company’s stock reacted differently to the announcement. Tesla’s stock fell 9.8% at the time of writing this article, while SolarCity’s stock rallied 5.14%.
Elon Musk’s proposal to acquire SolarCity is only a logical move to cement Tesla’s footprint in the world of renewable energy.
Telsa is on the verge of mass producing an economical sedan that is cheap enough to be adopted by millions. As it is, Tesla’s Model 3 nearing 400,000 preorders, Telsa needs to find a partner that would supply it with endless energy and who better to provide that energy than the sun through SolarCity? In the coming years, more and more charging stations will be installed across the US and around the world, and so acquiring SolarCity will help fill the gap of providing renewable energy.