The Master Plan For Tesla Motors Inc (TSLA) and SolarCity Corp (SCTY)

tesla motorsJay Taylor: Just this week Tesla Motors Inc (NASDAQ:TSLA) confirmed that its third model, due out in 2017, will be called the Model 3.

The $35,000 electric vehicle could be a game changer for the company, as it will put Tesla ownership within reach for millions around the world.

Surely such a groundbreaking product will have ripple effects throughout other industries.

As a result, there will be winners and there will be losers.

Today I’ll tell how the Tesla Model 3 helps SolarCity Corp (NASDAQ:SCTY).

SolarCity and Tesla have been connected since SolarCity’s formation. By the time SolarCity was founded in 2006 Elon Musk was already two years into his involvement with Tesla.

Just two years later he would become the CEO and Chief Product Architect.

Today, Musk serves as CEO, Chief Product Architect and Chairman of Tesla Motors.

He is also the Chairman of SolarCity.

It’s not difficult to picture the future as Elon Musk sees it.

His companies make it pretty obvious.

Elon Musk expects that we will harness the sun’s energy with solar panels installed and financed by SolarCity.

He then expects us to store that solar energy in lithium batteries produced by Tesla’s proposed gigafactory and use those batteries to power our homes and the electric cars that Tesla will sell us.

Assuming that this vision becomes a reality, investments in SolarCity and Tesla make a whole lot of sense.

But you don’t have to believe in Elon Musk’s vision of a world powered by solar panels to think SolarCity will be a huge winner as Tesla grows.

Indeed, Tesla is already creating significant demand for SolarCity’s products and services.

Tesla has begun setting up a network “supercharger” stations all over the world.


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