Tesla Motors Inc (NASDAQ:TSLA) is working on the acquisition of SolarCity Corp (NASDAQ:SCTY) and Elon Musk has already started to reveal some of the moves that will be carried out.
The Tesla CEO has revealed that SolarCity will start selling rooftops fitted with solar panels rather than just installing solar panels as it currently does. The idea is to centralize value for the customer by eliminating the need to have a roof fitting company do its job and then SolarCity doing the rest. All of that will now be handled by one firm and this will also potentially bring down costs. Elon Musk who is also the Chairman and majority shareholder at SolarCity made the announcement during Tuesday’s announcement of the company’s earnings call for the second quarter.
The move highlights SolarCity’s plan to shift its focus to new products while at the same time taking advantage of the growing market for rooftop solar panels. The shift also represents Musk’s influence as his firm is part of the ongoing merger deal between the two firms. Musk stated that the idea involves the use of solar roofs rather than solar modules on top of a roof. The Tesla CEO believes that it will be a pivotal part of rolling out its differentiated product strategy because the roofs will actually be made of solar panels.
Musk believes that this strategy will allow the company to venture into a new market. SolarCity CEO Lyndon Rive stated that his company would be unveiling two new products before the year ends. The merger between the two firms is also expected to close before the end of the year. Rive also pointed out that about 5 million roofs are installed in the US on an annual basis. He also stated that those who replace their roofs should consider solar panel roofing. He also stated that it will continue offering its existing solar panel services to those who still want to install solar panels on their roofs.