Tuesday 2 August 2016

Tesla buys solar firm in $2.6bn deal

Electric vehicle (EV) manufacturer Tesla announced it has reached an agreement to buy a solar firm.

The $2.6 billion (£1.9bn) deal with SolarCity, initially announced in June, will help Tesla expand its clean energy business.

It will allow the company to create "fully integrated residential, commercial and grid-scale products that improve the way that energy is generated, stored and consumed".

The firms expect to achieve cost synergies of $150 million (£112.5m) in the first full year.

In a statement, Tesla said: "By joining forces, we can operate more efficiently and fully integrate our products, while providing customers with an aesthetically beautiful and simple one-stop solar + storage experience: one installation, one service contract, one phone app."

Tesla has officially opened its ‘Gigafactory’ in Nevada.