And it is official. After a lot of deliberations and a lot of dramatics, Tesla has finally acquired SolarCity. We already knew it was going to happen after Tesla shareholders voted to acquire the company on the 18th. However, the acquisition formally closed on Monday morning.
Announcing the news, Tesla said,
We’re pleased to announce that Tesla’s acquisition of SolarCity closed this morning.
And that is it. There is no more news to report on the topic as of now. Both the companies have refused to elaborate further upon how the whole merging process will take place.
If I had to guess though, some layoffs might be on the horizon. While not same and indeed, vastly different in their aims and end products, both the companies deal with somewhat similar technologies and there are bound to be overlapping of departments. Considering the cash crunch both the companies are facing at the moment, layoffs would be an obvious choice to shed some load.
Meanwhile, the move is a significant step forward for Tesla CEO Elon Musk. While a section of financial pundits are pointing at Musk’s own considerable stakes in SolarCity, which were brought at a premium by Tesla, the deal is also a huge step forward for his clean energy drive. With cars running on electricity, it is also important that the spource of that electricity does not harm the environment.
A combination of Tesla and SolarCity is pretty potent and capable of doing wonders. Clean energy for homes and cars running on clean energy for transportation. What is next I wonder? Rockets running on clean energy to cart us off to Mars? Jokes aside, acquiring SolarCity is a definite step towards the formation of the Musk empire. We can expect both the companies to come up with some interesting tech following the acquisition.
Meanwhile, Musk has already said that he does not intend to raise further cash this year. Considering the amount of cash both Tesla and SolarCity have already burnt, there is going to be some tough work ahead in steering the companies through the time before a fresh influx of cash comes in to boost affairs.