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Tesla will acquire SolarCity in $2.6 billion stock deal
After a month of negotiations, Tesla announced through its blog post that the company has reached an agreement to acquire SolarCity for $2.6 billion in stock. By combining the two companies, Tesla states that it will create ‘the world’s only vertically integrated sustainable energy company’.
The all-stock transaction will value SolarCity common stock at $25.37 per share based on the 5-day volume weighted average price of Tesla shares as of July 29, 2016 said the company in its issued statement. As part of the agreement, SolarCity will have a 45 day “go-shop” provision valid until September 14, 2016 at which time the company can solicit proposals from other companies.
Read the full statement issued by Tesla below.
Tesla and SolarCity to Combine
Just over a month ago, Tesla made a proposal to purchase SolarCity and today we are announcing that the two companies have reached an agreement to combine, creating the world’s only vertically integrated sustainable energy company.
Solar and storage are at their best when they’re combined. 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.
Now is the right time to bring our two companies together: Tesla is getting ready to scale our Powerwall and Powerpack stationary storage products and SolarCity is getting ready to offer next-generation differentiated solar solutions. 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.
We expect to achieve cost synergies of $150 million in the first full year after closing. We also expect to save customers money by lowering hardware costs, reducing installation costs, improving our manufacturing efficiency and reducing our customer acquisition costs. We will also be able to leverage Tesla’s 190-store retail network and international presence to extend our combined reach.
Here are some key terms of today’s announcement: this is an all-stock transaction with an equity value of $2.6 billion based on the 5-day volume-weighted average price of Tesla shares as of July 29, 2016. Under the agreement, SolarCity stockholders will receive 0.110 Tesla common shares per SolarCity share, valuing SolarCity common stock at $25.37 per share based on the 5-day volume weighted average price of Tesla shares as of July 29, 2016.
After comprehensive due diligence in consultation with independent financial and legal advisors, the independent members of the Tesla and SolarCity boards of directors approved this transaction. Tesla’s financial advisor was Evercore, and Wachtell, Lipton, Rosen & Katz was its legal advisor. The financial advisor to the special committee of SolarCity’s board of directors was Lazard and its legal advisor was Skadden, Arps, Slate, Meagher & Flom.
As part of the agreement, SolarCity has a 45-day period known as a “go-shop”, which runs through September 14, 2016. This means that SolarCity is allowed to solicit alternative proposals during that time. Each company today filed a Form 8-K with the SEC that provides additional details regarding the transaction.
While today’s news is a big step, it isn’t the finish line – we expect the transaction to close in the fourth quarter of 2016. Before then, the deal must be approved by a majority of the disinterested shareholders of both Tesla and SolarCity voting at each shareholder meeting. We also need to obtain regulatory approval and meet other closing conditions.
News
Tesla Giga Berlin plant manager faces defamation probe after IG Metall union complaint
Prosecutors in Frankfurt (Oder) confirmed they have opened a defamation probe into Gigafactory Berlin plant manager André Thierig.
Tesla’s Giga Berlin plant manager is now under investigation after a complaint from trade union IG Metall, escalating tensions ahead of next month’s works council elections.
Prosecutors in Frankfurt (Oder) confirmed they have opened a defamation probe into Gigafactory Berlin plant manager André Thierig, as per a report from rbb24.
A spokesperson for the Frankfurt (Oder) public prosecutor’s office confirmed to the German Press Agency that an investigation for defamation has been initiated following a criminal complaint filed by IG Metall against Thierig.
The dispute stems from Tesla’s allegation that an IG Metall representative secretly recorded a works council meeting using a laptop. In a post on X, Thierig described the incident as “truly beyond words,” stating that police were called and a criminal complaint was filed.
“What has happened today at Giga Berlin is truly beyond words! An external union representative from IG Metall attended a works council meeting. For unknown reasons, he recorded the internal meeting and was caught in action! We obviously called police and filed a criminal complaint!” Thierig wrote in a post on X.
Police later confirmed that officers did seize a computer belonging to an IG Metall member at Giga Berlin. Prosecutors are separately investigating the union representative on suspicion of breach of confidentiality and violation of Germany’s Works Constitution Act.
IG Metall has denied Tesla’s allegations. The union claimed that its member offered to unlock the laptop for review in order to accelerate the investigation and counter what it called false accusations. The union has also sought a labor court injunction to “prohibit Thierig from further disseminating false claims.”
The clash comes as Tesla employees prepare to vote in works council elections scheduled for March 2–4, 2026. Approximately 11,000 Giga Berlin workers are eligible to participate in the elections.
News
Tesla wins FCC approval for wireless Cybercab charging system
The decision grants Tesla a waiver that allows the Cybercab’s wireless charging system to be installed on fixed outdoor equipment.
Tesla has received approval from the Federal Communications Commission (FCC) to use Ultra-Wideband (UWB) radio technology in its wireless EV charging system.
The decision grants Tesla a waiver that allows the Cybercab’s wireless charging system to be installed on fixed outdoor equipment. This effectively clears a regulatory hurdle for the company’s planned wireless charging pad for the autonomous two-seater.
Tesla’s wireless charging system is described as follows in the document: “The Tesla positioning system is an impulse UWB radio system that enables peer-to-peer communications between a UWB transceiver installed on an electric vehicle (EV) and a second UWB transceiver installed on a ground-level pad, which could be located outdoors, to achieve optimal positioning for the EV to charge wirelessly.”
The company explained that Bluetooth is first used to locate the charging pad. “Prior to the UWB operation, the vehicular system uses Bluetooth technology for the vehicle to discover the location of the ground pad and engage in data exchange activities (which is not subject to the waiver).”
Once the vehicle approaches the pad, the UWB system briefly activates. “When the vehicle approaches the ground pad, the UWB transceivers will operate to track the position of the vehicle to determine when the optimal position has been achieved over the pad before enabling wireless power charging.”
Tesla also emphasized that “the UWB signals occur only briefly when the vehicle approaches the ground pad; and mostly at ground level between the vehicle and the pad,” and that the signals are “significantly attenuated by the body of the vehicle positioned over the pad.”
As noted by Tesla watcher Sawyer Merritt, the FCC ultimately granted Tesla’s proposal since the Cybercab’s wireless charging system’s signal is very low power, it only turns on briefly while parking, it works only at very short range, and it won’t interfere with other systems.
While the approval clears the way for Tesla’s wireless charging plans, the Cybercab does not appear to depend solely on the new system.
Cybercab prototypes have frequently been spotted charging at standard Tesla Superchargers across the United States. This suggests the vehicle can easily operate within Tesla’s existing charging network even as the wireless system is developed and deployed. With this in mind, it would not be surprising if the first batches of the Cybercab that are deployed and delivered to consumers end up being charged by regular Superchargers.
Elon Musk
Tesla posts updated FSD safety stats as owners surpass 8 billion miles
Tesla shared the milestone as adoption of the system accelerates across several markets.
Tesla has posted updated safety stats for Full Self-Driving Supervised. The results were shared by the electric vehicle maker as FSD Supervised users passed more than 8 billion cumulative miles.
Tesla shared the milestone in a post on its official X account.
“Tesla owners have now driven >8 billion miles on FSD Supervised,” the company wrote in its post on X. Tesla also included a graphic showing FSD Supervised’s miles driven before a collision, which far exceeds that of the United States average.
The growth curve of FSD Supervised’s cumulative miles over the past five years has been notable. As noted in data shared by Tesla watcher Sawyer Merritt, annual FSD (Supervised) miles have increased from roughly 6 million in 2021 to 80 million in 2022, 670 million in 2023, 2.25 billion in 2024, and 4.25 billion in 2025. In just the first 50 days of 2026, Tesla owners logged another 1 billion miles.
At the current pace, the fleet is trending towards hitting about 10 billion FSD Supervised miles this year. The increase has been driven by Tesla’s growing vehicle fleet, periodic free trials, and expanding Robotaxi operations, among others.
Tesla also recently updated the safety data for FSD Supervised on its website, covering North America across all road types over the latest 12-month period.
As per Tesla’s figures, vehicles operating with FSD Supervised engaged recorded one major collision every 5,300,676 miles. In comparison, Teslas driven manually with Active Safety systems recorded one major collision every 2,175,763 miles, while Teslas driven manually without Active Safety recorded one major collision every 855,132 miles. The U.S. average during the same period was one major collision every 660,164 miles.
During the measured period, Tesla reported 830 total major collisions with FSD (Supervised) engaged, compared to 16,131 collisions for Teslas driven manually with Active Safety and 250 collisions for Teslas driven manually without Active Safety. Total miles logged exceeded 4.39 billion miles for FSD (Supervised) during the same timeframe.