Tesla has confirmed that it will join with SolarCity, another company owned by Elon Musk, to create what’s dubbed the “world’s only vertically integrated sustainable energy company”.
Given Tesla’s recent interest and creation of energy storage products like the Powerwall and Powerpack, now was deemed as the right time to join forces with SolarCity, which as its name implies, creates solar energy solutions.
The collaboration still has to be approved by shareholders and regulators but Tesla expects everything to be finalized in the fourth quarter of this year.
By integrating the energy solution products from both companies, customers will have an easier buying experience and only have to deal with a single service contract, rather than separate ones from Tesla and SolarCity (if a household has a Powerwall and SolarCity solar panels). Additionally, hardware costs will fall as will installation costs thus improving efficiency for both companies.
Tesla’s purchase of SolarCity equates to around $2.6 billion.
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