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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.
A new Tesla patent that has been granted to the company this week has revealed a potential strategy for solving a major issue that could impact both the Full Self-Driving suite and Optimus.
The patent, which is No. 12,636,684, describes a “Lens Cleaning System,” and was submitted by Tesla in May 2025.
The language in the patent details a lens cleaning system that can dispense fluid and wipe it away with a wiper assembly.
Optimus can see you now… 🤖👁️
The patent for @Tesla_Optimus‘s eye structure just dropped. $TSLA pic.twitter.com/Jac4VhDmKH
— SETI Park (@seti_park) May 26, 2026
This would effectively clean any debris that would potentially impact the visibility of the cameras on Tesla automobiles or Optimus’s camera eyes. Perhaps the most pertinent example is through the Full Self-Driving suite, as debris that can accumulate on the vehicle’s exterior cameras can impact the suite’s ability to operate effectively.
This requires a remedy through manual cleaning, but this patent hints that Tesla could be planning to implement this new technology on its upcoming vehicles.
Interestingly, we have started to see it on some Robotaxi vehicles, and it will likely be included in the Cybercab, especially as that vehicle will enable full autonomy.
Back in January, the first Model Y Robotaxi units were spotted with camera washers on the side repeaters, as the video below shows fluid squirting and rinsing off any debris that is limiting visibility.
🚨 Tesla looks to have installed Camera Washers on the side repeater cameras on Robotaxis in Austin
pic.twitter.com/xemRtDtlRR— TESLARATI (@Teslarati) January 23, 2026
This hardware patent does bring up an interesting question for those of us who own Teslas with AI4 and have been told that our cars will one day be capable of full autonomy: Will this washer be available as a retrofit on already-built cars?
Perhaps the “Lens Cleaning System” patent is a good look at one way Tesla plans to combat one of the most obvious issues of autonomy that utilizes a camera-based system. For Optimus, it could be less needed as it could be manually cleaned by owners. For cars, it seems like a bigger necessity, especially as autonomy nears and Tesla gets close to launching a feature-complete FSD suite.
SpaceX’s Starlink product has just gotten its latest airline adoptee, and the move marks the successful partnership of three of the “Big Four” U.S. airlines.
American Airlines announced on Tuesday that it would utilize Starlink in more than 500 narrowbody aircraft beginning in the first quarter of 2027. These include the Airbus aircraft in its fleet, including the new A321XLR and A321neo.
With the new partnership with American Airlines, Starlink is now present on three of the largest airlines in the country: American, United, and Southwest.
Starlink gets its latest airline adoptee for stable and reliable internet access
Starlink’s VP of Enterprise Sales, Jason Fritch, said:
“We are proud to bring Starlink on board American Airlines, delivering fast and reliable internet to passengers and crew. Whether traveling for leisure or business, Starlink enables a fully connected experience gate to gate, making every flight smoother and more enjoyable.”
Additionally, American Airlines Chief Customer Officer, Heather Garboden, said:
“As a premium global airline, we are continuously seeking out world-class partners like Starlink to deliver what our customers need and want. The addition of Starlink solidifies American as a leading airline in keeping passengers connected in flight.”
Starlink has been on a tear over the past year, as it has continued to be adopted by a wide variety of airlines as a more consistent and reliable way to provide WiFi to its passengers. It has already gained a great reputation among residential users, but its biggest commercial application appears to be how it is being used in the air.
American Airlines will adopt Starlink on more than 500 of its narrowbody aircraft beginning in Q1 2027
“As a premium global airline, we are continuously seeking out world-class partners like Starlink to deliver what our customers need and want,” said American Airlines Chief… pic.twitter.com/XY2wflycc0
— TESLARATI (@Teslarati) May 26, 2026
The only airline of the Big Four not to adopt Starlink thus far is Delta, which chose to opt for the alternative, which is Amazon Leo. CEO Ed Bastian said to Bloomberg that Delta chose Amazon’s product over Starlink’s because “the opportunities, in terms of the improved bandwidth with a much lower price point than what we’ve ever seen from Starlink, will make a big difference.”
Delta will not start installing Amazon Leo until 2028.
“Of course, we expect Starlink will be warning people that we’re going to go with an inferior product,” Bastian said. “But I’m not too worried about partnering with Amazon.”
Tesla Cybertruck’s newest trim level is nearing its first deliveries just a few months after being offered for an incredible deal.
Back in February, Tesla officially launched a new trim of the Cybertruck, the All-Wheel-Drive, starting at just $59,990. It was a lot of truck for the money, especially considering what it offered the Rear-Wheel-Drive variant for last year, which was a total flop.
The $59,990 price that was offered initially was a deal due to its 325-mile range rating, powered tonneau, three bed outlets, Powershare capability, coil springs with adaptive damping for a refined suspension feel, Steer-by-Wire and four-wheel steering, a 6′ x 4′ composite bed, towing capacity of 7,500 pounds, and a powered frunk.
Tesla is now nearing deliveries of this trim, according to watcher Sawyer Merritt, as Tesla has officially started assigning VINs to people who ordered the vehicle initially:
I can confirm that Tesla has officially started assigning VINs to people who initially ordered the $59,990 Cybertruck Dual-Motor AWD, which means first deliveries should start in the coming weeks!
• 325 mile range
• 7,500 lb towing capacity
• 0-60mph: 4.1s
• Bed with… pic.twitter.com/PQwVYbZf6j— Sawyer Merritt (@SawyerMerritt) May 24, 2026
Earlier this month, we reported on units of the trim being spotted outside Gigafactory Texas by Joe Tegtmeyer.
Tesla Giga Texas buzzing as new Cybertruck appears to enter production
This Cybertruck trim was interesting because it was released basically out of nowhere, priced incredibly well, and gathered many orders in a small amount of time. However, CEO Elon Musk noted just days afterward that the vehicle would only be priced at this bargain level for ten days.
Tesla fans were not happy.
Awful way to treat customers – particularly when they already sent out a marketing email announcing the $59,990 truck…with zero mention of it being a limited-time offer.
— Ryan McCaffrey (@DMC_Ryan) February 24, 2026
However, the issues with the pricing strategy have blown over since the February unveiling event, and now that deliveries are near, Tesla fans are anticipating the truck making its way to their driveways soon.
The truck is currently priced at $69,990, and deliveries for new orders are slated for between August and September 2026.
Tesla patent reveals strategy for solving major Full Self-Driving, Optimus issue
SpaceX Starlink gets its latest airline adoptee, grabbing three of the ‘Big Four’
