The proposal is a part of Tesla’s effort to shift its focus towards sustainable transportation by offering increasingly affordable electric vehicles.
Tesla said that the acquisition of SolarCity to create the world’s only vertically integrated energy company offering end-to-end clean energy products.
Tesla, in a letter to SolarCity CEO Lyndon Rive, said: "We believe that our proposal offers fair and compelling value for SolarCity and its stockholders, while also giving SolarCity’s stockholders the opportunity to receive Tesla common stock at a premium exchange ratio and the opportunity to participate in the success of the combined company through their ongoing ownership of Tesla stock."
The proposal, however, is subject to the completion of due diligence, the negotiation of mutually agreeable definitive transaction documents, and final approval by the Tesla board.
Tesla said that its design, engineering, and manufacturing experience would help advance further solar panel technology while SolarCity’s network of sales and distribution channels in the residential, commercial and industrial markets and expertise in customer-friendly financing would benefit customers.
Tesla said in a statement: "Tesla customers can drive clean cars and they can use our battery packs to help consume energy more efficiently, but they still need access to the most sustainable energy source that’s available: the sun."
The Wall Street Journal cited Tesla Motors CEO Elon Musk as saying that the acquisition would create a company with nearly 30,000 employees and offer package electric cars, batteries and solar panels for customers.
Image: Tesla Motors headquarters in Palo Alto, California, US. Photo: courtesy of Tumbenhaur/Wikipedia.
