Tesla offers to buy Solarcity for up to Rs 23,500 crore

Tesla wants to buy solar energy company Solarcity in order to integrate its technology into the charging systems of Tesla cars.

Solarcity is an American company responsible for designing, making and supplying solar power systems for houses and business, and Tesla believes its technology is well suited to supplying energy to its electric cars.

The deal, which could be worth as much as £2.4 billion (Rs 23,623 crore), would see Tesla become a completely vertical energy company, providing customers with everything from the power source to the car itself. It could also see Solarcity's stock valued at up to 30% more than it is today.

In its letter of intent to Solarcity, Tesla explains that the solar systems would also retain their ability to power everything else in a house or office.

“With your Model S, Model X, or Model 3, your solar panel system, and your Powerwall all in place, you would be able to deploy and consume energy in the most efficient and sustainable way possible, lowering your costs and minimizing your dependence on fossil fuels and the grid,” it continues.

At this stage no official response has been revealed by either party, but given that they already do business – Tesla supplies Solarcity with battery packs – insiders are confident a deal will be made.

Source: Autocar UK