Elon Musk is the only thing that connects Tesla and SolarCity to each other. The fate of the two companies could not even be more different. Tesla Motors is receiving good market value despite the problem with its Tesla Model S Autopilot system. On the other hand, SolarCity is trying to pay off its huge debt.
The possible merger may be more beneficial to the energy service provider.
Tesla CEO Musk is the Chairman of SolarCity. It's not surprising that he is pushing to close this deal. This is despite the fact that the said merger has already received mixed reviews from investors and equity analysts as reported by Forbes.
Elon Musk Is Persistent
The deal with SolarCity will be voted on by shareholders in November 17. Based on Tesla's blog post, Musk is keen to put SolarCity in a good light. It is stated that the merger will bank on SolarCity's installation network and Tesla's global retail footprint.
The post said that it will create significant value for the shareholders.
Tesla also announced that it will unveil a solar roof product with SolarCity on Oct. 28. The American automaker will also reveal more financial information to the public regarding its plans for two companies on Nov. 1.
Glaringly absent in these statements is SolarCity's debt. Business Insider reports that the company's share dropped by more than 50 percent. It also has to pay over a billion in debt by the end of 2016.
SolarCity's Role In Musk's Mars Colonization
Musk and his SpaceX company want to be the first one to send people to Mars. But he is even more ambitious by planning to colonize the famous Red Planet. It's not easy to set up a human civilization on Mars. Though Musk is adamant in defying any constraints.
At this point, nothing will stop him. The escape to Mars is Musk's answer to the possible destruction of the Earth.
As the Business Insider puts it best, the merger of Tesla with SolarCity is a critical piece in his Master Plan. The struggling company may be useful in building that Mars City.
Tesla can use solar power for their cars. This is especially fitting to use on Mars since the Sun is too big to miss. This will also further the automakers no carbon emissions.
Once Musk gets SpaceX, Tesla and SolarCity to really work together, he might as well thrive in Mars.