I still don't understand the SolarCity part. Tesla is atop the best rated electric cars, and has a good trajectory toward that product line future, with lots of innovation ahead. Successful companies like Apple focus on best-in-class products, so Tesla is smart to continue focusing their resources into those product lines.
Meanwhile SolarCity has been burning cash on a consistent basis [1], and is sitting in a hyper competitive solar panel industry, where I don't see their competitive advantage. It seems foolish to bring that business inside of Tesla, as if it failed, the debt risk would now affect Tesla's future. As many others have mentioned, a long term licensing deal or partnership avoids those risks.
Meanwhile SolarCity has been burning cash on a consistent basis [1], and is sitting in a hyper competitive solar panel industry, where I don't see their competitive advantage. It seems foolish to bring that business inside of Tesla, as if it failed, the debt risk would now affect Tesla's future. As many others have mentioned, a long term licensing deal or partnership avoids those risks.
[1] http://www.msn.com/en-us/money/companies/musk-says-solarcity...