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Musk defends SolarCity merger: $500M cash to Tesla, strength of $1B raised

Tesla presented more financial information related to its pending acquisition of SolarCity to investors late Tuesday after the closing bell. Details were revealed through a comprehensive blog post published on the company’s site. Here are some of the the important points covered.
- SolarCity is expected to add more than a $500 million in cash to Tesla’s balance sheet over the next 3 years.
- SolarCity has transitioned to a cash or purchase finance model instead of a leasing model. This allows the company to bring more money in the door upfront rather than waiting for lease payments to come in over 20 years.
- SolarCity has arranged for nearly $1 billion in financing for its business in 2016 alone.
- Solar City currently does business in less than half of all states. Tesla is a global company with a much greater marketing territory.
- Combining the companies will create efficiencies that create cost savings of nearly $150 million a year.
During the question and answer session with analysts Tuesday afternoon, Elon has several interesting things to say. He prodded the doubters by saying that those who have been predicting a bad outcome for Tesla Motors have been wrong 100% of the time so far. He said their “batting average is zero” and asked why anyone would pay attention to people with such a dismal track record.
Referring to the fact that SolarCity already has a customer base of 300,000 installed solar systems, Musk asked people to consider the significant upsell opportunities that base represents. He joked that what people often see as counterintuitive turns out to be perfectly logical once they fully understand the concept. How is it possible that the same people can be against something one moment and then claim it to be the obvious solution the next, he mused?
For instance, he pointed out that there are more than 150 million roofs in the North American market alone. That means there is an enormous business opportunity for the solar roof products unveiled last week. Musk seemed baffled that more people don’t grasp the size of the market and the profit potential it offers.
Talking further about the solar roof, Elon downplayed its cost, saying the glass for the solar tiles cost next to nothing to manufacture. “Glass is basically sand,” he said. Even the micro-louvers that give the tiles their distinctive appearance when viewed from below are made of plastic. Very tough plastic, to be sure, but only slightly more expensive than glass.
To him, it seems obvious that people will clamor for the solar roof product. Others have tried to make a solar roof before, but Elon asked coyly if anyone had ever seen one that was attractive. He said none of them were appealing enough to go on his own house and wondered aloud why no one had come with a solar roof product before that is as attractive as the Tesla offering.
Finally, Musk was asked, if the SolarCity merger was not approved, would Tesla offer solar products from other companies in its stores? He scoffed at the idea. Would Apple offer cell phones from Samsung and other manufacturers in its stores? He seemed to think the idea was preposterous.
Elon is clearly committed to the merger with SolarCity. He even considers it pretty much a no brainer. Despite that, Tesla stock has dropped considerably this week after a temporary pop in the stock following the solar roof reveal. The company stock is trading -1.31% after hours following today’s announcement.
If you’re considering solar for your home or business, we encourage you to get a solar cost estimate first, based on your monthly utility bill and location. The service is being provided by an affiliate partner and fan to Teslarati.

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Tesla best-rated car brand in UK, beats Toyota in reliability: survey
The survey asked readers to rate their cars across metrics like efficiency, reliability, practicality, safety, comfort, and performance.

Tesla critics would typically paint the company’s electric vehicles as reliability nightmares with subpar build quality and cheap materials. As per a survey from the U.K., however, the opposite is true, as Tesla is not just the country’s overall best-rated car brand, it is also the second most reliable carmaker.
The survey was conducted by HonestJohn.co.uk, which asked its readers to rate their cars across several metrics, such as efficiency, reliability, practicality, safety, comfort, and performance. Over 6,000 respondents participated in the recent survey.
UK’s Overall Best-Rated Car Brand
Based on the respondents of Honest John’s survey, Tesla was the U.K.’s best-rated car brand for 2025 with a satisfaction index rating of 89.41%. In second place is Japanese premium carmaker Lexus, which garnered a satisfaction index rating of 86.32%. In third place is Porsche, which garnered a satisfaction index rating of 84.79%.
Tesla’s Reliability Surprise
While Tesla’s high customer satisfaction index scores in the survey were not that shocking, the company’s rankings in reliability are especially surprising. Tesla critics typically accuse Tesla of producing vehicles that are not reliable or are prone to imperfections like panel gaps. But as can be seen in the U.K. survey, Tesla’s reliability has actually improved a lot.
Tesla’s reliability rating in the Honest John survey was an impressive 95.29%. That’s just below Lexus, which was the number one at 97.01%. Tesla was also above Toyota, which was in third place with a reliability rating of 94.65%.
What Honest John Says
In its rankings for the U.K.’s most reliable car brands, Honest John highlighted that while Tesla tended to be hit or miss with things like build quality in the past, the company has matured a lot in recent years.
“While we were always impressed by the technology within Tesla’s range of exclusively electrically powered cars, build quality seemed to be a little hit and miss, to say the least. Evidently, matters have improved significantly in this regard according to our readers’ feedback as not only has the brand scored well for reliability across its four-strong range but the Tesla Model 3 was also rated as the most satisfying car to own overall,” the publication wrote.
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Tesla Unveils Model Y RWD 110 customized for Singapore

Tesla unveiled the Model Y RWD 110 for Singapore’s Category A certificate of entitlement (COE) rules. This custom SUV tweaks the updated Model Y, which was launched in Singapore in January.
Tesla tuned the Model 3 RWD 110 for Singapore before, and that customized version’s success spurred this Model Y adaptation. The Model Y RWD 110 runs at 110kW, down from 255kW in the standard RWD. It qualifies for Singapore’s Category A COE, unlike the Model Y 255kW version, which sits in Category B.
Category A COEs are for mass-market cars. They score lower premiums than Category B COEs. BMW and Mercedes-Benz register vehicles as Category A COEs in Singapore as well.
In Singapore, buyers need to pay the COE to register a car. The latest tender showed an SGD 22,388 gap between Category A and B premiums.
The Model Y RWD 110’s road tax is significantly reduced from SGD 3,478 to SGD 1,562 yearly. The Strait Times calculated that the cheaper Model Y in Singapore would save SGD 19,160 over a 10-year COE.
The Model Y RWD 110 matches the 255kW version otherwise. The more affordable Model Y’s battery size holds steady. Its energy use, equipment, and design stay the same.
Tesla prices the Model Y RWD 110 at SGD 103,476 before COE. The Model Y RWD 110 costs SGD 3,026 less than the 255kW version, excluding COE costs. It uses a 62.5kWh lithium iron phosphate battery.
Tesla has released cheaper versions of its cars before. For instance, it rolled out a more affordable Model 3 in Mexico last year. The cheaper Tesla Model 3 in Mexico did not use the same materials and had different features to reduce costs.
Tesla might consider releasing custom, cheaper versions of its vehicles in other countries. Industry sources in China hint at a “lower-priced Model Y” for the Chinese auto market, which keeps the Juniper’s battery and chassis
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Tesla US Gigafactories shields from Trump’s 25% Tariffs
Tesla US Gigafactories Shielded from Trump’s 25% Tariffs

Tesla stocks climbed after U.S. President Donald Trump announced tariffs on imported cars and auto parts, standing out in the United States auto industry.
Automaker stocks tanked after President Trump slapped 25% tariffs on foreign autos and parts. Tesla slightly dodged the tariff blow thanks to local production. Its gigafactories in China and Germany don’t supply Tesla vehicles to the United States market. The company builds all U.S.-sold EVs in Fremont, California, or at Giga Austin in Texas.
TD Cowen analyst Itay Michaeli sees the American EV automaker as a winner in Trump’s tariffs games.
“Tesla [is] a relative beneficiary given [its] 100% U.S. production footprint, substantial U.S. sourcing, and with Model Y competing in a midsize crossover segment where close to ~50% of vehicles could be subject to tariffs,” Michaeli wrote on Thursday.
Rivian and Lucid also make all vehicles sold in the United States domestically. Ford hits 77% U.S. production, while Stellantis sits at 57%. Nissan and GM each clock in at 52%.
Trump’s 25% tariff on non-U.S.-made vehicles kicks in next week, on April 2, 2025. Elon Musk confirmed that Trump’s tariff will still affect Tesla, despite its plants in America.
Musk posted on X about tariff impacts. He said foreign-sourced parts will drive up costs. It’s not a small hit. Tesla warned of this in a letter to the U.S. Trade Representative. “Certain parts and components are difficult or impossible to source within the United States,” the letter stated, even with “aggressive localization.”
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