Tesla Motors, SolarCity Merger News: Powerwall Battery System Installations Cost Lessens By $900 Per Househould

Tesla Motors and SolarCity merger will lessen the cost of Powerwall battery system installations by $900 per house. Tesla Inc and SolarCity merger will also benefit the latter as Tesla customers will be enticed to visit sister stores.

Tesla Motors stakeholders are more likely to accept the $2.7 billion stock bid on SolarCity. Patrick Jobin, Credit Suisse analyst, predicted that the company will not estrange Tesla Motors CEO Elon Musk since this can damage his aura of invincibility.

Tesla Motors shareholders, more than half of them, already own SolarCity stock, while 45.6 percent of SolarCity shareholders have Tesla stocks. Only 8.7 percent and 5.4 percent of Tesla Motors and SolarCity holders do not overlap. For both of these companies, Musk owns the biggest shares.

The Tesla Motors shareholders were first resentful of the deal, but things changed. Jobin noted that while the Tesla's bid to buy SolarCity was too low; SolarCity stocks fell from 0.9% to 23.71. Tesla Motors stocks rose from 2% to 216.50, Investors reported.

As Tesla Motors continues to deal with acquiring SolarCity, it would open Tesla to capital market, consumer credit and regulatory risks. It would also make SolarCity's financials outlook appear better if it shifts to an engineering and procurement construction (EPC) model instead of asset ownership, Quartz reported.

Jobin also included a chart taken from Bloomberg that shows the connections and only one member from the board does not share blood ties to all others. According to the chart, SolarCity CEO Rive is the cousin of Musk. Both are cousins of SolarCity's co-founder, Peter Rive. Kimbal Musk, on the other hand, is a member of the Tesla Inc board, while JB Straubel, Tesla co-founder, is on SolarCity's board as well.

SolarCity's former CFO, Brad Buss is also a member of the Tesla board. John Fisher, an early VC investor in Tesla, and his investment firm partner Stephen Jurvetson, are also included on Tesla's board. CEO of Valor Equity Partners, Antonio Gracias, is a board member of Tesla and SolarCity.

Tesla Motors CEO Musk and SolarCity CEO Lyndon Rive have communally agreed to the merging plan.