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In this undated photo provided by SolarCity, workers install solar panels on the roof of a home. (AP Photo/Courtesy SolarCity)

Tesla seals the $2.6 billion deal to buy SolarCity, Elon Musk expands his electric empire


It's official: Tesla and SolarCity have joined forces.

The electric car maker said on Monday it had finalized terms of a deal to unite with the solar panel company for an eye-popping $2.6 billion all-stock transaction.

"As one company, Tesla (storage) and SolarCity (solar) can create fully integrated residential, commercial and grid-scale products that improve the way that energy is generated, stored and consumed," a Tesla blog post explained.

Tesla says the union will create a "one-stop" solar clean energy solution for customers. 

Meanwhile, critics point out that Tesla CEO Elon Musk is already chairman of both companies as well as their largest shareholder.

The merger is long-expected and in line with other moves Tesla has made toward providing sustainable energy.

Simply look at Powerwall, the rechargeable, solar-powered home battery it introduced last year, or the construction of its Gigafactory, where Tesla will produce electric batteries for its cars. It has even outlined a master plan to build energy efficient trucks and SUVs.

Though there is no timeline for the release of the TeslaSemi or its fleet of other big cars.

As the Associated Press notes, Musk has come to be known as somewhat of a visionary with an unpredictable streak. The deal is likely to garner buzz even beyond the utility industry. 

For one, both companies' financial positions stand out. Both companies have suffered billion-dollar losses and FactSet predicts they will lose hundreds of millions more this year.

SolarCity shares slipped on the news. Tesla stock was largely flat.

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