{"id":146,"date":"2016-08-03T16:29:35","date_gmt":"2016-08-03T10:59:35","guid":{"rendered":"https:\/\/www.awfis.com\/?p=28907"},"modified":"2026-08-14T19:18:28","modified_gmt":"2026-08-14T13:48:28","slug":"5-things-you-can-learn-from-the-tesla-solarcity-deal","status":"publish","type":"post","link":"https:\/\/www.awfis.com\/inspiration\/5-things-you-can-learn-from-the-tesla-solarcity-deal","title":{"rendered":"5 things you can learn from the Tesla-SolarCity deal"},"content":{"rendered":"
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Image Courtesy: http:\/\/bit.ly\/2aPntm9<\/figcaption><\/figure>\n

The \u201cAccident of History\u201d, as Elon Musk calls it has finally been mended. Tesla Motors and SolarCity have finally agreed upon a $2.6 Billion deal through what we now have as the World\u2019s first vertically integrated sustainable energy company. The combination of energy storage and solar generation as one company can create a fully integrated residential, commercial and grid-scale products, creating a one-stop shop for clean energy customers. One can learn a lot from a merger this big, where Elon owns more than 20% of both companies and is the largest shareholder in both. As budding entrepreneurs and with a vision to be the next Musk, here are some points you can learn from this merger-<\/p>\n

1. Time it Right<\/strong><\/p>\n

The two companies spoke through a joint blog post about how the timing for such a merger was perfect, as Tesla is getting ready to scale its\u00a0Powerwall and Powerpack stationary storage products and SolarCity is getting ready to offer next-generation differentiated solar solutions.<\/p>\n

2. Making Breakthroughs<\/strong><\/p>\n

Musk believes that Tesla is making breakthroughs in its manufacturing processes that can help reduce the amount of space needed to build parts by two-thirds, improving quality and capital needed for various outputs. Through the merger SolarCity would help in those improvements.<\/p>\n

3. Strategic Planning<\/strong><\/p>\n

The merger makes perfect sense strategically as customers would be able to purchase a single system to generate solar power through Tesla installations, store the energy in Tesla batteries and transfer it into their electric cars.<\/p>\n

4. All-in-One Shop<\/strong><\/p>\n

SolarCity could benefit from Tesla\u2019s strong brand value, making Tesla showrooms a compact shop for energy storage and electric car sales and giving increased transparency to the solar firm. Tesla\u2019s insights on power electronics could lead to lower installation costs for SolarCity.<\/p>\n

5. Taking Risks for Future Endeavours<\/strong><\/p>\n

Putting together two money\u2013losing entities can\u2019t ensure a single profit-making venture even after cutting out some overlapping costs. So what vision does Musk have in mind?<\/p>\n

Musk\u2019s vision for the \u201cnew\u201d Tesla is to become a leader in the renewable energy business. He is trying to instigate a now-out-of-fashion model under which companies seek to increase profits by owning different stages of production, sources, and components: Vertical Integration.<\/p>\n

If you are a risk taker, a strategic planner, who wants to make a breakthrough, you can make use of the all-in-one co-working space in Andheri West<\/a>, Mumbai or business centre in Hosur Road<\/a>, Bengaluru and fulfill your dream endeavours.<\/p>\n

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