Tesla's SolarCity Merger Is All About End-To-End Energy Products
Elon Musk is trying to make Vertical Integration popular again, though it fell out of favor a very long time ago. With the combines values " synergies", Telsa and Solar City are pitching in. At a first glance, it might not look like it makes sense to combine a car company with a solar company, but Elon Musk has it all on how to handle the Telsa Solar Merger.
Reports from The New York Times says, Telsa Motors and SolarCity announced a 2.6 billion stock meager on Monday. Its all in his hands to persuade the shareholders of the companies he both found.
With vertical integrated sustainable energy company, Telsa and SolarCity will have an opportunity to offer end-to-end clean energy products. Consumers can now consume and deploy energy by leveraging the core competencies of each companies in more efficient and sustainable way.
There will be a Powerwall 2 that maximizes the benefits of the combined systems, a Model S, Model X and Model 3 with SolarCity's existing solar power systems and solar roof. All of these come at a low cost which can maximize the dependence on the utility grid and fossil fuels according to Inc.
Musk has become one of the world's most prominent advocate for vertical integration as he want to play a visionary CEO who wants to influence a lot of aspects of his products. But, a lot of analysts, though, say that this vision could take years, maybe even decades, to play out on a large scale, it may take longer than many investors tend to wait.
He does not want to acquire SolarCity to have a solar business, but as an ecosystem. The combination of electric car and solar power is his vision, he sees selling electric cars that run on power captured by solar panels and stored in home battery packs.
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