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Tesla Buys SolarCity as Part of Elon Musk’s Master Plan
Tesla Motors announced it has bought solar panel installer SolarCity for $2.6 billion in shares to create a seamless clean energy company. Or as Reuters puts it, consumers will now be allowed to buy solar panels, home battery storage systems and electric cars under one roof.
Tesla and SolarCity have created the world's first and only vertically integrated sustainable energy company.
Bloomberg tweeted that announcement was the "solar industry's biggest deal to date."
Tesla touted the merger in a blog post:
Just over a month ago, Tesla made a proposal to purchase SolarCity and today we are announcing that the two companies have reached an agreement to combine, creating the world's only vertically integrated sustainable energy company.
Solar and storage are at their best when they're combined. As one company, Tesla (storage) and SolarCity (solar) can create fully integrated residential, commercial and grid-scale products that improve the way that energy is generated, stored and consumed.
The enigmatic businessman perhaps poked fun at the historic vertical integration of the two companies in a classic Musk tweet:
According to MarketWatch, "SolarCity stockholders will receive 0.11 shares of Tesla for each SolarCity share, valuing them at $25.83 apiece."
"No kidding," he added. "This has literally been on our website for 10 years."
"We can't do this well if Tesla and SolarCity are different companies, which is why we need to combine and break down the barriers inherent to being separate companies," Musk continued. "That they are separate at all, despite similar origins and pursuit of the same overarching goal of sustainable energy, is largely an accident of history. Now that Tesla is ready to scale Powerwall and SolarCity is ready to provide highly differentiated solar, the time has come to bring them together."
Tesla first announced the offer last month at a slightly higher price of $2.8 billion.
Musk stressed the importance of curbing use of dirty energy as quickly as possible. "Given that we must get off fossil fuels anyway and that virtually all scientists agree that dramatically increasing atmospheric and oceanic carbon levels is insane, the faster we achieve sustainability, the better," he wrote.
Tesla said it expects that the merger will save customers money by lowering hardware costs, reducing installation costs, improve manufacturing efficiency and reducing customer acquisition costs.
The deal will now go to Tesla and SolarCity shareholders for approval. Musk, who is chairman of SolarCity and the largest investor in both companies has recused himself from the vote.
Last week, Tesla held a grand opening celebration of its massive Gigafactory outside Reno, Nevada.
The Gigafactory, which will be the world's largest building by footprint once construction is complete, will manufacture lithium-ion batteries for Tesla's electric cars and Powerwall products that store solar energy for homes and businesses.
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‘Companies Should Not Be Allowed to Use Hazardous Ingredients in Products People Use’: Michelle Pfeiffer Speaks Up for Safer Cosmetics
The beauty products we put on our skin can have important consequences for our health. Just this March, the U.S. Food and Drug Administration (FDA) warned that some Claire's cosmetics had tested positive for asbestos. But the FDA could only issue a warning, not a recall, because current law does not empower the agency to do so.
Michelle Pfeiffer wants to change that.
The actress and Environmental Working Group (EWG) board member was spotted on Capitol Hill Thursday lobbying lawmakers on behalf of a bill that would increase oversight of the cosmetics industry, The Washington Post reported.
By Julia Conley
Scientists at the United Nations' intergovernmental body focusing on biodiversity sounded alarms earlier this month with its report on the looming potential extinction of one million species — but few heard their calls, according to a German newspaper report.
The climate crisis is a major concern for American voters with nearly 40 percent reporting the issue will help determine how they cast their ballots in the upcoming 2020 presidential election, according to a report compiled by the Yale Program on Climate Change Communication.
Of more than 1,000 registered voters surveyed on global warming, climate and energy policies, as well as personal and collective action, 38 percent said that a candidate's position on climate change is "very important" when it comes to determining who will win their vote. Overall, democratic candidates are under more pressure to provide green solutions as part of their campaign promises with 64 percent of Democrat voters saying they prioritize the issue compared with just 34 percent of Independents and 12 percent of Republicans.
President Donald Trump has agreed to sign a $19.1 billion disaster relief bill that will help Americans still recovering from the flooding, hurricanes and wildfires that have devastated parts of the country in the past two years. Senate Republicans said they struck a deal with the president to approve the measure, despite the fact that it did not include the funding he wanted for the U.S.-Mexican border, CNN reported.
"The U.S. Senate has just approved a 19 Billion Dollar Disaster Relief Bill, with my total approval. Great!" the president tweeted Thursday.
"There was a lot of devastation throughout the state," Governor Mike Parson said at a Thursday morning press conference, as NPR reported. "We were very fortunate last night that we didn't have more injuries than what we had, and we didn't have more fatalities across the state. But three is too many."