Tesla Agrees to Acquire SolarCity for $2.6 Billion

Tesla has reached a deal to buy SolarCity for $2.6 billion, the motor company announced on Aug. 1.

The merger will allow both companies to begin offering solar panels, batteries and electric cars to its customers — the “end-to-end” clean energy solution that Tesla CEO Elon Musk outlines in his Master Plan Part Deux, according to Engadget.

The acquisition of SolarCity, currently one of the country’s largest solar companies, is the next logical step for Musk, who wants to vertically integrate Tesla’s battery storage systems and vehicles with SolarCity’s panel systems.

Musk, as part of his ambitious dream to bring clean energy to the world, hopes that the acquisition will allow buyers to be able to purchase a solar panel system, Powerwall batteries to store the sun’s energy, and electric cars that run on it — all in one store.

The deal has yet to be approved by shareholders, but if it is, it would double Tesla’s workforce to nearly 30,000 employees. The merger would also provide both companies with $150 million worth of savings — partly due to Tesla’s strong brand recognition and brick-and-mortar locations — the Wall Street Journal reported.

The merger is not expected to impact Tesla’s current Model 3 project — or the gigantic Gigafactory the company is building to make the batteries for its newest electric car, Engadget reports.

SolarCity’s shares were valued at $25.38 apiece in the acquisition, a lower amount than the proposed $26.50 to $28.50 that Tesla originally announced in June, according to the WSJ.

While this merger would officially bring both companies together, Tesla and SolarCity have a long history of working closely with each other. It’s also worth noting that Musk is the chairman and largest shareholder for both companies.

The deal is expected to close sometime in September of this year, after a 45-day period in which SolarCity can hear alternate offers from other potential buyers, Engadget reports.