The Acquisition of SolarCity by Tesla：A Good Step or Not?

Abstract

It has been a controversy whether the acquisition of SolarCity would be really beneficial for Tesla in terms of both profitability and long-term strategies. In this article, the author will analyze the acquisition from the aspects of both business strategies and financial performances. Financial indicators such as free cash flow and liquidity will be used in order to measure the financial health and performance of two companies before and after acquisition. Thus we could draw the comparison and figure out the change that might be brought to Tesla in the future.