Tesla And Solarcity Merger : Integrated Sustainable Energy Essay

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Tesla & SolarCity Merger
Integrated Sustainable Energy
James Garcia
Eastern Florida State College

This paper explores the merger of Tesla and SolarCity. Tesla is the most successful electric car company and has won multiple awards for its’s product offerings. SolarCity is the largest residential and commercial solar installer in the United States. Tesla is a successful car company but is still plagued with financial concerns due to its upcoming mass market car, the Model 3, and its battery plant, the Gigafactory. SolarCity has its own financial woes as last year it posted revenues of just $1.5 billion while amassing $3 billion in debt. These financial troubles have investors worried. Elon Musk, CEO of Tesla and Chairman of SolarCity, believes that by leveraging SolarCity’s installation network and Tesla’s global retail footprint, that the merger will create significant value for its shareholders. Synergies of the merger will allow Tesla to achieve a competitive advantage and lead the way in clean energy product innovation much in the way Tesla has done with electric cars. Investors and analyst are also worried about corporate governance concerns as Elon Musk is the CEO of Tesla as well as the chairman of SolarCity. Lyndon Rive, SolarCity CEO, is also the cousin of Musk. Time will tell if Tesla and SolarCity can successfully merge and create the world’s first vertically integrated energy company. Keywords: Merger, manufacturing, synergy,

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