Tesla has announced that a deal has been reached that will see the company acquire energy giant, SolarCity.
The stock deal is worth $2.6 billion according to Tesla, which includes the assumption of debt, valuing SolarCity shares at $25.37.
Elon Musk, who is the chairman of SolarCity and the the CEO and chairman of Tesla, has defended the deal by noting how swiftly the acquisition would propel Tesla into a well-rounded renewable energy products company versus merely being an electric car company.
Tesla plans to ultimately integrate solar cells onto the roofs of its vehicles that will give the company’s cars more capabilities than ever before.
Tesla expects to trim $150 million in costs in the first full year following the deal’s completion.
“We also expect to save customers money by lowing hardware costs, reducing installation costs, improving our manufacturing efficiency and reducing our customer acquisition costs,” Tesla added in a statement.
For what it’s worth, Elon Musk refers to the deal as a “no-brainer”.