My first thought when I heard the news that Tesla had acquired SolarCity (a large solar power company) was that both sound like they would both go together hand in hand, electric car and solar power, yeah this could work! When I further looked into details and found out that Tesla had lost $900 Million in 2015 and that SolarCity had lost $769 Million, combining to make a total loss of $1.6 BILLION in the year 2015 does not seem to make the most sense in a business strategy.
While Elon Musk has been known for a few unusual financial manoeuvres to help support his companies, is it worth Tesla taking the hit? Since the news has been released SolarCity’s shares have increased by over 15% while Tesla’s shares have dropped by over 11%. What do we expect to see from this purchase? The possibility of adding solar panels to a Tesla? Only time will tell! Let us hope that Elon Musk doesn’t scare off all his investors with crazy financial backing of companies that he has a part in.