Tesla, SolarCity Talks Canceled Due To Financing Delays? The Truth Revealed

Aug 11, 2016 07:30 AM EDT | Eve C.


The negotiations between Tesla Motors and SolarCity is allegedly canceled due to financing problems. The latter accepted Tesla's acquisition for a $2.6 billion offer but it looks like there are some problems involving the aim to close the project financing.

Tesla CEO Elon Musk aims to have a carbon-free energy, Fortune reports. Hence, the CEO made the offer on June 21 and SolarCity accepted the offer on Aug. 1.

However, the latter revealed on Tuesday that the talks with Tesla led to project financing delays of about 30 days. The talk will likely to resume until the end of the 3rd quarter.

But why is Tesla buying SolarCity? In a separate Fortune article, Musk said that both of the companies could be a "$1 Trillion company." According to the report, Musk wants a company can produce energy, using solar panels, store energy, using batteries, among others.

"This may seem counterintuitive to a lot of people, but I think it is so obvious that something should be done," Musk explained, quotes Pocket-Lint

Those who have no idea what SolarCity is, it is a company that provides energy services, like designing, financing, and installing of solar power systems. Tesla CEO Elon Musk is also part of the organizational chart as the co-founder and chairman as well.

Should the acquisition be successful, Tesla will have the power in the clean energy industry. Musk also stated that SolarCity will soon introduce a "solar roof" that will start the future of their business.

"I think this is really a fundamental part of achieving differentiated product strategy, where you have a beautiful roof. It's not a thing on the roof. It is the roof," he added.

Let us see where they will lead us so stay tuned for more updates regarding Tesla Motors and SolarCity's merging, and other car updates here at AutoWorldNews.

See Now: OnePlus 6: How Different Will It Be From OnePlus 5?

© 2020 Auto World News, All rights reserved. Do not reproduce without permission.
Get the Most Popular Autoworld Stories in a Weekly Newsletter

Join the Conversation

Real Time Analytics