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Tesla (TSLA) Proposes to Buy SolarCity: What's in Store?
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Tesla Motors, Inc. (TSLA - Free Report) announced an offer to acquire solar installation firm SolarCity Corporation . The automaker has offered an exchange ratio of 0.122x to 0.131x shares of Tesla for each share of SolarCity. This represents a premium of around 21%−30% over the closing price of SolarCity as of Jun 21.
Tesla focuses on providing sustainable transportation. Its electric vehicles consume energy more efficiently as they are powered by battery. However, the most sustainable energy source is the sun. Thus, Tesla has considered acquiring SolarCity.
Per Tesla, this deal, if completed, will benefit its shareholders and customers as well as the employees of both companies. The electric automaker also believes that the acquisition will help it to offer innovative approaches toward sustainable transportation and energy.
Gains from the Acquisition
According to Tesla, this acquisition will help it to become the only vertically integrated energy company in the world offering end-to-end clean energy products. The vehicles featuring both the solar panel system and Powerwall will consume energy efficiently. This will therefore reduce costs as well as the dependence on fossil fuels.
Tesla also considers that this acquisition will enable it to expand its footprint more effectively which would not be possible independently. Moreover, consumers preferring the solar energy source will be interested in the company’s electric vehicles. This will enhance store traffic, in turn aiding results.
This acquisition will allow Tesla to benefit from SolarCity’s expertise. SolarCity’s wide network and distribution channels, and expertise in offering customer-friendly financing products will benefit Tesla. Further, Tesla will be able to utilize SolarCity’s knowledge in installing solar panel systems and thus, offer the best installation services.
Additionally, both companies are focused on providing sustainability and innovation. This acquisition will continue to emphasize on their goal.
Some better-ranked automobile stocks include Oshkosh Corporation (OSK - Free Report) and Superior Industries International, Inc. (SUP - Free Report) . Both the stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Tesla (TSLA) Proposes to Buy SolarCity: What's in Store?
Tesla Motors, Inc. (TSLA - Free Report) announced an offer to acquire solar installation firm SolarCity Corporation . The automaker has offered an exchange ratio of 0.122x to 0.131x shares of Tesla for each share of SolarCity. This represents a premium of around 21%−30% over the closing price of SolarCity as of Jun 21.
Tesla focuses on providing sustainable transportation. Its electric vehicles consume energy more efficiently as they are powered by battery. However, the most sustainable energy source is the sun. Thus, Tesla has considered acquiring SolarCity.
Per Tesla, this deal, if completed, will benefit its shareholders and customers as well as the employees of both companies. The electric automaker also believes that the acquisition will help it to offer innovative approaches toward sustainable transportation and energy.
Gains from the Acquisition
According to Tesla, this acquisition will help it to become the only vertically integrated energy company in the world offering end-to-end clean energy products. The vehicles featuring both the solar panel system and Powerwall will consume energy efficiently. This will therefore reduce costs as well as the dependence on fossil fuels.
Tesla also considers that this acquisition will enable it to expand its footprint more effectively which would not be possible independently. Moreover, consumers preferring the solar energy source will be interested in the company’s electric vehicles. This will enhance store traffic, in turn aiding results.
This acquisition will allow Tesla to benefit from SolarCity’s expertise. SolarCity’s wide network and distribution channels, and expertise in offering customer-friendly financing products will benefit Tesla. Further, Tesla will be able to utilize SolarCity’s knowledge in installing solar panel systems and thus, offer the best installation services.
Additionally, both companies are focused on providing sustainability and innovation. This acquisition will continue to emphasize on their goal.
TESLA MOTORS Price
TESLA MOTORS Price | TESLA MOTORS Quote
Tesla currently carries a Zacks Rank #4 (Sell).
Stocks That Warrant a Look
Some better-ranked automobile stocks include Oshkosh Corporation (OSK - Free Report) and Superior Industries International, Inc. (SUP - Free Report) . Both the stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>