Tesla said Monday it will buy solar panel maker SolarCity Corp. in an all-stock deal worth $2.6 billion.
Thirteen-year-old Tesla currently makes two luxury vehicles — the Model S sedan and Model X SUV— as well as Powerwall and Powerpack energy storage units for homes and businesses.
Tesla is working feverishly on its new, lower-cost Model 3 sedan, which is due out by the end of next year, as well as pickups, electric buses and semi-trucks.
"The point of the merger is to get rid of the conflicts," he said.
[...] it's very limited what we can do unless we are one company.
S&P Global raised its target price for SolarCity shares to $26 but reiterated its "sell" opinion on Tesla shares Monday, saying the deal benefits SolarCity more than Tesla.
Electric car buyers can currently get a $7,500 federal tax credit, for example, while solar panel buyers can deduct 30 percent of the cost of their installation from their federal taxes.
