Deals

Musk’s SolarCity Bid Offers Lifeline as Competition Erodes Lead

  • ‘They gain immediate knowledge when they need it most’
  • SolarCity lowered 2016 installation forecast for second time

Inside Tesla's Deal to Buy SolarCity for $2.6 Billion

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Elon Musk says Tesla Motors Inc.’s $2.6 billion takeover of SolarCity Corp. is no bailout. Analysts say it certainly can’t hurt.

SolarCity’s stock has fallen by 57 percent in the last year. It’s reduced its installation forecast twice, and a business model focused on leasing systems rather than selling them is losing favor with consumers. Meanwhile, market share for competitors like Sunrun Inc. is on the rise.