Designing The World 's First Vertically Integrated Clean Energy Company Essay

1661 WordsDec 1, 20167 Pages
With its offer to acquire SolarCity, Tesla wants to create the world’s first vertically integrated clean energy company encompassing everything from power generation, to storage and to transportation. As one company, Tesla (storage) and SolarCity (solar) can create fully integrated residential, commercial and grid-scale products that improve the way that energy is generated, stored and consumed. Tesla has offered an all-stock offer of $2.6 billion for SolarCity (Szal, Tesla, SolarCity Hope Merger Will Accelerate Solar Energy, 2016). This would be a steep discount compared to SolarCity’s stock price of just a year or two ago when it was trading above $65 per share. Since reaching those highs, SolarCity’s stock price has fallen to the $15-$25 range. A combined Tesla and SolarCity will be able to provide the first ever opportunity to generate, store and consume energy entirely sustainably, through a suite of integrated products that add aesthetics and function while reducing cost. By leveraging SolarCity’s installation network and Tesla’s global retail footprint, this can be accomplished in a way that is seamless for customers and that will create significant value for shareholders. On October 28th, Tesla and SolarCity unveiled a solar roof product, which along with Powerwall 2.0, which showcases the kinds of products that the combined company will be able to create. The newly announced solar roof from SolarCity can be integrated with Tesla battery packs (Etherington,
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