Tesla's SolarCity Transaction Approved by the US FTC

2018-05-04 21:00:54

According to foreign media reports, the U.S. Federal Trade Commission (FTC) announced on Thursday that Tesla Motors has officially approved the acquisition of SolarCity, a solar energy provider. The reason why the transaction can be approved so quickly is that there is not much overlap in the business between the two companies.

Tesla officially announced its acquisition of SolarCity on August 1 this year. The former aims to use the latter's solar products to promote a new power energy management system and related economic benefits.

As the No. 1 commercial solar panel supplier in the United States, SolarCity was established in October 2008 and is headquartered in Foster City, California. Its business is mainly divided into three categories: installation and sales of photovoltaic systems, photovoltaic leasing and PPA, and energy efficiency (energy saving) services.

Musk stated that the acquisition of SolarCity will transform Tesla into a vertically integrated energy company, providing end-to-end clean energy products to customers, including solar panels, home energy storage devices and electric vehicles.

Previously, SolarCity had been under financial pressure for a long time due to the competitor's low price strategy. At the same time, some US state governments have gradually withdrawn financial subsidies for installation of solar panels, which also has a significant negative impact on the company's performance.

As of Thursday's close, Tesla's stock price closed at 220.96 US dollars, or 1.66 US dollars, or about 0.75%.