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Tesla has just offered to buy SolarCity, Elon Musk’s other company

Tesla, which Musk is CEO of, is offering a stock-for-stock buyout of SolarCity, which Musk is chairman of, in a deal worth around $2.8 billion, Recode reports. SolarCity makes power solar power systems for various products and Tesla is arguing that by acquiring the company they could bring the cost of the renewable energy systems down—and make Tesla products, such as the Powerwall and Powerpack more cost effective for customers. Elon Musk shared his thoughts behind the proposed acquisition on a press call:

“This is something we’ve been thinking about and debated for many years. Just from a product integration standpoint and offering the most compelling experience to consumers and businesses we really need to achieve a tighter integration of the products. It’s the right timing because Tesla is wrapping up its activities with battery storage and Solar City is getting ready to release some exciting products as well.”

As for bringing the two companies together, that’s for their shareholders to decide, but Musk says he’s firmly behind the plan:

“I personally think this is a no-brainer. But it will become apparent over time. I think most of our customers have an interest in solar, I’d be shocked if they don’t. Tesla’s customer base will expand dramatically with the Model 3, [so] I think there are going to be a pretty huge number of customers where we can provide them the complete solution from energy generation, to storage, to transportation.”

[Image: SolarCity]MG