Tech

Tesla Has Won Antitrust Approval to Buy SolarCity

By Reuters
Tesla Opens Flagship San Francisco Store
The Tesla Motors Inc. logo is displayed on a window at the company's new showroom in San Francisco, California, U.S., on Tuesday, Aug. 9, 2016. Tesla marked the opening of its largest North American sales, service and delivery center in San Francisco, a key market from which Elon Musk's electric-car maker will introduce its all-important Model 3 sedan late next year.
Photograph by David Paul Morris—Bloomberg via Getty Images

Tesla (TSLA) has won U.S. antitrust approval to buy solar panel installer SolarCity (SCTY), the Federal Trade Commission said on Thursday.

The deal was on a listing of proposed transactions that won quick approval because the merging companies have few or no overlaps.

The deal was announced on Aug. 1 and is part of an effort by Tesla to improve economies of scale in electrical energy management systems, battery production and marketing.

SolarCity’s shares rose 0.4% while Tesla was up 0.3% on Thursday.

 

SolarCity has come under pressure from rivals offering low-cost solar energy through large, utility-scale installations, and because some state governments have reined in subsidies that encouraged rooftop solar.