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Tesla Motors Gets Approval From Antitrust Regulators To Buy SolarCity

Tesla Motors has made another vital step in its strategy, and this one involves a necessary approval regarding the acquisition of America’s largest solar panel supplier, SolarCity.
Elon Musk opens the Tesla Gigafactory (2016.7.29) 1 photo
Photo: Screenshot from YouTube
Tesla Motors proposed to acquire SolarCity for $2.6 billion, and the other company run by Elon Musk has agreed to the deal, but both partners required approval from U.S. Federal Regulators.

As most significant transactions in industry, the Federal Trade Commission (FTC), along with antitrust regulators, must analyze the terms of the deal and approve or disapprove it.

In the case of the Tesla Motors and SolarCity deal, the FTC has given its approval. As NPR notes, Tesla was interested in this investment because it wants to offer a renewable energy source for the electric vehicles it sells.

With this purchase, Tesla could unite two business ventures and offer its customers a one-stop-shop solution for switching to a renewable source of energy for transportation and home use.

Tesla’s entry into the energy market was made last year, with the introduction of the Tesla Powerwall, but the acquisition of a noteworthy solar panel manufacturer and vendor closes the circle for the American corporation founded and run by Elon Musk.

As we previously noted, Elon Musk is the chairperson of SolarCity and the CEO of Tesla Motors. The South-African-born business person made a personal purchase $65 million in SolarCity bonds, while the co-founders of the solar panel manufacturer (the Rive brothers) each bought $17.5 million in bonds, according to a SEC filing. Musk is Lyndon and Peter Rive’s cousin, as their mothers are twins.

With the new deal, Elon Musk has united two operations related to electricity, so we are curious to see the next steps of the Tesla CEO. In case you have forgotten, Musk also founded a company specialized in the exploration of space, as well as Hyperloop, a transportation provider that proposes a revolution in long-distance travel with the use of underground tunnels and high-speed crafts.

Elon Musk at the opening of the Tesla Gigafactory

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About the author: Sebastian Toma
Sebastian Toma profile photo

Sebastian's love for cars began at a young age. Little did he know that a career would emerge from this passion (and that it would not, sadly, involve being a professional racecar driver). In over fourteen years, he got behind the wheel of several hundred vehicles and in the offices of the most important car publications in his homeland.
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