Tesla-SolarCity merger could be fraught with danger -- and big potential
On the surface, a merger between Tesla Motors and SolarCity looks like a winner: They have a similar customer base, use each other's manufacturing facilities and technologies -- and of course, there's the family ties.
Tesla founder and CEO Elon Musk is also the co-founder and chairman of SolarCity, which is run by fellow co-founder and CEO Lyndon Rive and his brother, CTO Peter Rive -- both of them Musk's cousins. Musk owns 22% of SolarCity's stock and 21% of Tesla.
"In my personal opinion, this is obviously something that should happen. It's a no-brainer," Musk said during a conference call last week on the proposed merger.
"Instead of making three trips to a house to put in a car charger and solar panels and battery pack, you can integrate that into a single visit," Musk continued. "It's an obvious thing to do."
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