This is why Elon Musk is buying SolarCity - home battery system

I believe Elon Musk will give people a crazy idea when they are most unexpected.
The entrepreneur announced on Monday that Tesla, his electric vehicle company, has agreed to take full-
Stock trading worth $2. 6 billion.
Tesla said in a blog post that adding SolarCity to Tesla's management will benefit the two companies.
The blog post wrote: "By joining forces, we can operate more effectively and fully integrate our products while providing customers with beautiful and simple products --
Stop solar storage experience: one installation, one service contract, one phone app.
"Masco used to describe transactions in terms of" obvious "," no ", etc.
While many financial analysts and investors are confused, if not directly shocked.
When Tesla first raised the idea earlier this summer, its share price fell by more than 10%, while SolarCity's share price rose by about 15%. Confused?
Here is a brief introduction to what is happening.
What is SolarCity?
SolarCity is the main installer for solar panels.
The technology can help consumers and businesses save energy by converting solar energy into electricity.
The company was founded in 2006 by two brothers who happened to have a relationship with Elon Musk, accounting for more than third of all solar companies
Power generation systems already installed in the United StatesS. homes.
Musk himself is the chairman of SolarCity.
Why did Tesla propose the acquisition of SolarCity?
Musk is trying to create a huge, cleantech behemoth.
At a meeting on Tuesday, he said the hewantsTesla store was basically-
Stop buying electric cars, solar panels and household batteries.
Does that make sense?
To a certain extent.
SolarCity can save on sales and marketing costs, and it may reach new customers with Tesla's help.
Some analysts say SolarCity has spent a lot of money on acquiring customers;
If these costs fall, it will be a huge benefit to SolarCity's business.
Under Tesla's control, SolarCity can also adapt to emerging trends faster.
One of the cool things about installing one or two solar panels in your house is that depending on where you live, you can sell any unused excess power to utilities.
So you have a little cash in your pocket.
Although dozens of states have such projects, this has begun to change as states such as Nevada and Michigan take steps to undo some of them.
While this may be bad news for companies that are purely focused on generating electricity from solar panels, for companies that are able to sell connected systems consisting of solar panels and household batteries, it may be
In this way, even if consumers cannot sell their excess energy back to the grid, they can still store any excess energy they produce.
Combining SolarCity's solar panels with Tesla's Powerwall home battery system seems to be exactly what Musk thinks.
Now imagine going further with this solar energy.
Power system for high-rise power supply
The speed charger in the garage makes your Tesla full of juice. With the much-
Next year, the Model 3 is expected to be put into production, and you can bet that Tesla will sell this bundle to consumers. Okay.
So why are some investors afraid?
Some say Tesla doesn't have to buy SolarCity to get all of these advantages, especially when both companies are struggling financially.
The situation in SolarCity is worse;
At the beginning of this year, Tesla's shares have fallen by 60%, and Tesla's shares are worth about 10 times as much.
At the same time, as the cost of solar panels continues to decline, the development of solar cells may be difficult to keep up with these changes, and its business model may not be sustainable. Senior research analyst at market research firm Navigant.
"Anyway, given the partnership between the two companies, there's no reason why they don't do the same thing and bring SolarCity sales [Tesla]
"There is no store for the company," said Abuelsamid . ".
"This is not the first time a company has such a partner.
"Are there any other challenges in the future?
Musk is known for promising significant results.
He will then encounter delays or setbacks that prevent him from achieving his stated goals.
Musk may face more difficulties than expected to merge the two companies into a different corporate culture.
Other companies obviously have similar ideas with Musk;
On Tuesday, BMW announced it would start selling its home battery packs.
Given these moves, Tesla's acquisition of SolarCity may be the same as a potential advantage in advance --
Become a competitor and surpass them in a competitive industry, which may be more important than any other industry.
This post has been updated. SaveSave