Tesla Motors Inc (TSLA.O) Chief Executive Elon Musk on
Friday unveiled new energy products aimed at illustrating the
benefits of combining his electric car and battery maker with solar
installer SolarCity Corp (SCTY.O).
The billionaire entrepreneur showed of solar-powered roof tiles
that eliminate the need for traditional panels and a longer-lasting
home battery, which Tesla calls the Powerwall, aimed at realizing
his vision of selling a fossil fuel free lifestyle to
consumers.
"This is sort of the integrated future. An electric car, a
Powerwall and a solar roof. The key is it needs to be beautiful,
affordable and seamlessly integrated," Musk said while showcasing
the products on homes that once served as the set of the television
show "Desperate Housewives."
Musk is the biggest shareholder in both Tesla and SolarCity,
which is run by two of his first cousins. Analysts have been
dubious of the deal's proposed synergies, with some suggesting the
merger is a way for Tesla to rescue money-losing SolarCity. A vote
on the acquisition is scheduled for Nov. 17.
The rollout of the product, expected as soon as next summer,
would be "unwieldy" if the two companies are not combined, Musk
told reporters.
Having two separate companies "slows things down, makes them
more expensive. It's worse for shareholders," he said.
Musk refused to answer a reporter's question about how Tesla's
balance sheet would accommodate the acquisition of SolarCity.
By incorporating solar modules into rooftops, Tesla is hoping to
succeed with a solar technology that to date has had little
success. Just this year, Dow Chemical said it would stop selling a
solar shingle it launched five years ago.
Tesla's glass solar roof tiles would look far better than any
similar product, Musk said. They can be manufactured in a range of
styles, which were demonstrated on the rooftops on the set.
Tesla gave little detail on cost, except to say that the cost of
the roof would be less than a conventional roof plus solar. The
product will appeal to home builders and people looking to replace
their roofs, Musk said, adding that the shingles would be more
durable and have better insulation qualities than conventional
roofs.
SolarCity co-founder Peter Rive, Musk's cousin, said the solar
roofs could easily have a five percent share of the new roof market
within a year or two.
The new generation of home and industrial batteries will be
available this year.