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Tesla makes offer to acquire SolarCity, Elon Musk doubles down
BREAKING: Tesla’s board of directors has made a bid to acquire SolarCity. The proposed acquisition of SolarCity by Tesla would amount to an approximate $2.8 billion stock-only deal or a premium of 21% to 30% over today’s SolarCity (NASDAQ:SCTY) closing price.
The two companies have shared history with one another through strategic partnerships that have allowed each company to leverage its core technology to provide clean energy and off-grid energy storage. Not only do both companies share a mission rooted in accelerating the transition to a sustainable energy future, they also share arguably the most critical component to driving this mission forward – Elon Musk.
Musk sits as chairman at SolarCity and also the largest individual shareholder of the company. He’s also majority shareholder and CEO at Tesla, now split into automotive division Tesla Motors, and Tesla Energy which designs and manufacturers the Powerall and Powerpack lithium-ion battery storage system used in SolarCity’s massive solar power projects.
By combining the two entities, Tesla will be able to effectively control design, strategy, and production by ultimately unifying operations under a single umbrella. Tesla’s statement reads:
“We believe that the possibilities for product, service and operational synergies would be substantial, and that a combination would allow our companies to build on our respective core competencies and remain at the forefront of delivering innovative approaches for sustainable transportation and energy.”
Full Statement from Tesla:
Tesla’s mission has always been tied to sustainability. We seek to accelerate the world’s transition to sustainable transportation by offering increasingly affordable electric vehicles. And in March 2015, we launched Tesla Energy, which through the Powerwall and Powerpack allow homeowners, business owners and utilities to benefit from renewable energy storage.
It’s now time to complete the picture. Tesla customers can drive clean cars and they can use our battery packs to help consume energy more efficiently, but they still need access to the most sustainable energy source that’s available: the sun.
The SolarCity team has built its company into the clear solar industry leader in the residential, commercial and industrial markets, with significant scale and growing customer penetration. They have made it easy for customers to switch to clean energy while still providing the best customer experience. We’ve seen this all firsthand through our partnership with SolarCity on a variety of use cases, including those where SolarCity uses Tesla battery packs as part of its solar projects.
So, we’re excited to announce that Tesla today has made an offer to acquire SolarCity. A copy of Tesla’s offer is provided below.
If completed, we believe that a combination of Tesla and SolarCity would provide significant benefits to our shareholders, customers and employees:
- We would be the world’s only vertically integrated energy company offering end-to-end clean energy products to our customers. This would start with the car that you drive and the energy that you use to charge it, and would extend to how everything else in your home or business is powered. With your Model S, Model X, or Model 3, your solar panel system, and your Powerwall all in place, you would be able to deploy and consume energy in the most efficient and sustainable way possible, lowering your costs and minimizing your dependence on fossil fuels and the grid.
- We would be able to expand our addressable market further than either company could do separately. Because of the shared ideals of the companies and our customers, those who are interested in buying Tesla vehicles or Powerwalls are naturally interested in going solar, and the reverse is true as well. When brought together by the high foot traffic that is drawn to Tesla’s stores, everyone should benefit.
- We would be able to maximize and build on the core competencies of each company. Tesla’s experience in design, engineering, and manufacturing should help continue to advance solar panel technology, including by making solar panels add to the look of your home. Similarly, SolarCity’s wide network of sales and distribution channels and expertise in offering customer-friendly financing products would significantly benefit Tesla and its customers.
- We would be able to provide the best possible installation service for all of our clean energy products. SolarCity is the best at installing solar panel systems, and that expertise translates seamlessly to the installation of Powerwalls and charging systems for Tesla vehicles.
- Culturally, this is a great fit. Both companies are driven by a mission of sustainability, innovation, and overcoming any challenges that stand in the way of progress.
Today’s offer to acquire SolarCity is only the first step toward a successful combination of Tesla and SolarCity. We will provide a further update if and when an agreement is reached.
June 20, 2016
Mr. Lyndon R. Rive
Chief Executive Officer
SolarCity Corporation
3055 Clearview Way
San Mateo, CA 94402
Dear Lyndon:
We are pleased to submit to you and the SolarCity board of directors a proposal to acquire all of the outstanding shares of common stock of SolarCity in exchange for Tesla common shares. Subject to completing due diligence, we propose an exchange ratio of 0.122x to 0.131x shares of Tesla common stock for each share of SolarCity common stock. This proposal represents a value of $26.50 to $28.50 per share, or a premium of approximately 21% to 30% over the closing price of SolarCity’s shares, based on today’s closing price of SolarCity’s shares and the 5-day volume weighted average price of Tesla shares. We believe that our proposal offers fair and compelling value for SolarCity and its stockholders, while also giving SolarCity’s stockholders the opportunity to receive Tesla common stock at a premium exchange ratio and the opportunity to participate in the success of the combined company through their ongoing ownership of Tesla stock.
The board of directors of Tesla is excited at the prospect of a potential combination of SolarCity’s business with Tesla. We believe that the possibilities for product, service and operational synergies would be substantial, and that a combination would allow our companies to build on our respective core competencies and remain at the forefront of delivering innovative approaches for sustainable transportation and energy. We believe that a combination would generate significant benefits for stockholders, customers and employees of both Tesla and SolarCity.
We are committed to a possible transaction that is fair to SolarCity’s and Tesla’s respective stockholders. To help ensure that, Tesla is prepared to make the consummation of a combination of our companies subject to the approval of a majority of disinterested stockholders of both SolarCity and Tesla voting on the transaction. In addition, as a result of their overlapping directorships, Elon Musk and Antonio Gracias have recused themselves from voting on this proposal at the Tesla board meeting at which it was approved, and will recuse themselves from voting on this proposal at the SolarCity board as well. We believe that any transaction should be the result of full and fair deliberation and negotiation by both of our boards and the fully-informed consideration of our respective stockholders.
Our proposal is subject to the satisfactory completion of due diligence, the negotiation of mutually agreeable definitive transaction documents, and final approval by the Tesla board. While a transaction would be further subject to customary and usual closing conditions, we believe that Tesla is well positioned to negotiate and complete the transaction in an expedited manner. We do not anticipate significant regulatory or other obstacles in consummating a mutually beneficial transaction promptly.
In light of Elon Musk’s SEC disclosure obligations in his individual capacity as a stockholder of SolarCity this proposal will be publicly disclosed, but Tesla’s intention is to proceed only on a friendly basis.
We look forward to discussing a potential transaction with you, and hope to expeditiously enter into a definitive agreement.
Sincerely,
The Board of Directors of
Tesla Motors, Inc.
Tesla is pushing back against the unfair reporting of accidents involving its vehicles. Many media outlets were quick to jump to conclusions about a fatal accident involving a Tesla in Katy, Texas, that happened recently.
The driver of the vehicle, which slammed into a brick house and killed a woman inside, stated the car was operating on Autopilot. Tesla CEO Elon Musk and Head of AI Ashok Elluswamy both challenged that claim, with Elluswamy revealing last night that the system was overridden by the driver, who pressed the accelerator pedal “all the way to 100%.”
Tesla finally clarifies fatal Texas crash, confirms driver manually overrode acceleration
The car reached a speed of 73 MPH during the crash, Elluswamy detailed, and stated that the accelerator pedal was even pressed after the crash.
The story has been spread throughout the media with either incomplete or incorrect reporting, with some stories still not updated nearly 24 hours after Musk and Elluswamy posted answers about the crash on X.
The reporting has been a thorn in the side of Tesla for several years. Vehicle accidents involving Teslas are usually reported with the manufacturer’s name in the headline, while other companies are free of criticism when their cars are involved in accidents.
Here’s an example of that:
So you don’t report the vehicle’s make when it isn’t a Tesla, but you do report it when it is a Tesla?
The vehicle in your post above is a Hyundai Ioniq 5 EV. pic.twitter.com/4WT3sZ2DHm
— Sawyer Merritt (@SawyerMerritt) February 17, 2026
Many media outlets stated the car was in “self-driving mode” or “Autopilot mode” when the car crashed. The truth is, now that Tesla has chimed in, that the driver had manually overriden the system by pressing the accelerator. Elluswamy commented on the unfair reporting:
“This blatantly irresponsible reporting does more harm to people than they realize.
Using Tesla self-driving is far safer than manual driving, and this was measured over 10B miles.
Planting such FUD in the minds of general public, who might not know the all the facts, might prevent them from using this technology that makes them safer.”
This blatantly irresponsible reporting does more harm to people than they realize.
Using Tesla self-driving is far safer than manual driving, and this was measured over 10B miles.
Planting such FUD in the minds of general public, who might not know the all the facts, might…
— Ashok Elluswamy (@aelluswamy) June 22, 2026
The damage these headlines do to Tesla and the self-driving car movement is unexplainable. Most people do not realize the safeguards that are in place with Tesla’s self-driving functions; many people who have used it know the car would never travel at that speed in a residential area, not even on the most aggressive “Mad Max” setting.
It is important to remember that Tesla Full Self-Driving is not autonomous, and the company never claimed it was. Drivers are still responsible for paying attention and remaining vigilant. They must be able to take over at all times.
Tesla Supercharging is getting yet another layer of gamification, as the company is rolling out a new competition that could win Free Supercharging miles.
Tesla is ramping up its efforts to make vehicle ownership more engaging through gamification. In June 2026, the company announced the 2026 Free Supercharging Competition, building on the Charging Passport feature introduced the previous year. This initiative turns Supercharging into a competitive, collectible adventure while offering substantial real-world incentives.
🚨 Tesla is taking its gamification of Supercharging a step further with the launch of the 2026 Free Supercharging Contest:
“In January 2027, Tesla will celebrate nine outstanding Supercharger users from 2026 by awarding them free Supercharging for their Tesla vehicle for as… pic.twitter.com/CPPYJLJwFD
— TESLARATI (@Teslarati) June 23, 2026
The Charging Passport, rolled out late last year, functions like a digital travel log or a year-in-review for Tesla owners. These types of things are used by many platforms, including Spotify and Apple Music, which show listeners what type of taste they had for the year.
Accessed in the Tesla App under the ‘Charging’ section, it displays a map of visited Superchargers, key stats, such as total energy charged (kWh), number of unique sites, total charging sessions, top charging day, and miles added. Owners earn collectible Charging Badges in categories, which include:
- Charging Milestones – for total energy, consecutive weeks of Supercharging, or unique sites visited
- Iconic Chargers – for Flagship Locations or stations near famous landmarks
- Special Events – limited-time badges for specific experiences. These badges appear within 24 hours of qualifying activity and provide a fun, shareable recap of an owner’s Supercharging journeys. Milestone progress resets annually, allowing fresh challenges each year
The 2026 contest elevates this gamification by rewarding top performers with lifetime free Supercharging. All Supercharging sessions from January 1 to December 31, 2026, count toward the competition. To participate, owners must enable “Share Charging Data with Tesla App” in vehicle settings and open the 2026 Charging Passport in the app at least once before January 1, 2027.
Nine winners will be selected — three per region (Americas, Asia-Pacific, and EMEA, with some countries excluded for regulatory reasons) — one in each of three categories:
- Longest Trip: Longest continuous streak of unique Supercharger locations where each new site is visited within 24 hours of the previous session’s start time
- Most Unique Supercharger Sites Visited: Highest number of distinct locations
- Most Energy Supercharged: Highest total in kWh charged at Superchargers
A unique site is defined as shown in the Tesla app or vehicle navigation. Repeat visits during a streak are allowed but do not extend the count. Ties are broken by total energy charged. Ineligible participants include vehicles already receiving free Supercharging, commercial-use vehicles (taxi, rideshare, delivery), Tesla employees and their immediate families, and residents of certain excluded countries.
Winners receive free Supercharging on the winning vehicle for as long as they own or lease it.
This contest is part of Tesla’s broader gamification strategy. The Safety Score has long rewarded safe driving habits with a numerical rating that can influence insurance rates or feature access. The referral program incentivizes owners with credits or free Supercharging months for successful referrals.
In-app statistics, streaks, and community features further encourage engagement. Older third-party apps even awarded “mayor” titles for frequenting specific Superchargers.
By combining digital badges, competitive leaderboards, and high-value rewards, Tesla boosts network utilization, gathers usage data, and fosters deeper owner loyalty. The 2026 Free Supercharging Competition invites enthusiasts to plan epic road trips while turning everyday charging into a rewarding pursuit. With the Passport already proving popular, expect heightened activity across the Supercharger network throughout the year.
Tesla is atop the American-Made Index from Cars.com for the sixth-straight year, as the Model 3 and Model Y took the top two spots, respectively.
Last year, the Model 3, Model Y, Model S, and Model X took the top four spots, respectively. The company has routinely performed well in the Index. However, Tesla discontinued its flagship Model S and Model X earlier this year, which took the two cars out of the ranking.
Cybertruck is not considered due to its curb weight being above the 8,500-pound threshold, which eliminates it from being required to have more detailed assembly information.
Cars.com uses five main categories to develop its rankings:
- Location(s) of final assembly
- Percentage of U.S. and Canadian parts
- Countries of origin for all available engines
- Countries of origin for all available transmissions
- U.S. manufacturing workforce
These five major factors are then put into a 100-point scale. The vehicles with the highest scores sit atop the list. The Model 3 edged out the Model Y.
🇺🇸 The Tesla Model 3 and Tesla Model Y have been put atop the American-Made Index from https://t.co/PXZ0g1pPb6, meaning they are the most American vehicles you can possibly buy.
This is the SIXTH-STRAIGHT year a Tesla has been listed as the most American-made vehicle: pic.twitter.com/HyraOmaxSL
— TESLARATI (@Teslarati) June 23, 2026
Tesla uses a strong domestic strategy to build its cars and parts domestically. It relies on intense vertical integration that reduces its dependence on global suppliers, keeping more value and jobs in the United States.
This strategy has helped Tesla gain a strong reputation for domestically produced vehicles and parts. However, it helps it with more than just awards like this one. Keeping a supply chain local has also helped insulate Tesla more than others from tariffs and supply chain disruptions.
This year’s American-Made Index from Cars.com studied nearly 400 vehicles from the 2026 model year. Tesla was the only manufacturer to have an EV inside the Top 10. The Kia EV9 was the next EV to make the list, scoring the 17th position.
The Hyundai IONIQ 5 was 21st, and the final EV to make the list was the Cadillac LYRIQ in 77th.
Tesla pushes back against unfair reporting of accidents
Tesla gets another layer of gamification with Free Supercharging on the line
