Tesla SolarCity Acquisition 2016 Strategic Rationale

Tesla's acquisition of SolarCity creates an integrated sustainable energy company combining solar generation, energy storage, and electric vehicle transportation. The deal is expected to be immediately accretive to Tesla's cash position, adding more than half a billion dollars over three years through improved financing mix and operational synergies. SolarCity's $1+ billion in annual revenue and strong cash generation complement Tesla's design, manufacturing, and retail capabilities.