In an interesting setting for the launch of a new product, Elon Musk revealed roof tiles which are fitted with built in solar panels at the Universal Studios, Los Angeles which was previously being used as the set for the popular show, Desperate Housewives.
In a bid to revive the fledgling company Solar City, whose chief executive happens to be Mr. Musk’s cousin, Tesla has initiated a takeover, a move which has increased concerns among the investors at Tesla as Solar City has Musk with its largest shareholder and holding a vested interest.
Surprisingly, Musk did not announce the price for the new offering but said that it would cost less than a normal roof added with traditional solar panels. Musk displayed a lot of designs for the tiles during the launch and positioned them as being more aesthetically pleasing than conventional tiles. The launch was a bid to improve the viability of the struggling company Solar City with Musk himself leading the effort.
Powerwall 2, Tesla’s new product was also unveiled at the launch which is a home battery product designed to store any surplus power generated from solar panels to be used later. The product was priced at $5500 initially as announced by Mr. Musk during its unveiling.
The acquisition of Solar City would cost Tesla nearly $2.6 billion which Mr. Musk justified by promoting the notion that this would make work easier for Tesla than having to deal with two different companies at the same time which will lead to slower processing. This came after Tesla posted a profit in its latest quarterly earnings after a downturn of 3 years with having to deal with losses.
Mr.Musk’s vision will prove ultimate in making these two ventures work where both of them have a speculative future ahead of them amidst resistance from oil companies which are the ultimate stakeholders in the industries Mr. Musk aims to bring a revolution in. What this move would entail for Tesla and Musk will only be told by the passage of time but for now, the shareholders of Tesla will go into a vote deciding on the proposed acquisition on 17th November.