Everything you need to know about Tesla's new solar business (TSLA)

Tesla

Tesla is no longer just an automaker.

Although the company has always offered energy storage options, like its Powerwall and Powerpack, Tesla has officially solidified itself as a player in the energy space by acquiring SolarCity in a deal worth roughly $2 billion. Now Tesla will be responsible for solar installation and financing in addition to selling electric cars.

It's a big announcement with a lot of moving parts, so we made it a bit easier to keep track of everything. Here's what you need to know:

Tesla first announced its intention to acquire SolarCity at the end of June to become the "world’s only vertically integrated energy company."

Asa Mathat | D: All Things Digital

It's a pretty interesting concept, actually — the idea of buying into a Tesla ecosystem or a Tesla lifestyle. Your roof would collect solar energy that would be stored in your at-home battery. And that very same battery could power the sustainable Tesla car sitting in your garage.

Business Insider's Matt DeBord wrote an article explaining how Tesla is trying to revive vertical integration, a business practice that has largely gone out of style. 

The acquisition proposal was immediately met with criticism as SolarCity has struggled as a company, leading many to refer to the deal as a bailout.

AP/Ed Andrieski

In the past year, SolarCity shares have plummeted by more than 50%. SolarCity also has roughly $3 billion in debt that Tesla has now acquired.

The deal was naturally further complicated by the fact that Musk owns roughly 20% of both companies and is chairman of SolarCity. He is also the cousin of SolarCity CEO Lyndon Rive.

You can read more about the criticism about the deal here.

Regardless, Tesla said it expects SolarCity to contribute over $1 billion in revenue in 2017 and to contribute over 500 million in cash to Tesla's balance sheet over the next three years.

Thomson Reuters

Musk has even said he could see SolarCity being a cash contributor in the fourth quarter.

Now that SolarCity is a wholly owned subsidiary of Tesla, its shares have been converted into .11 Tesla shares and are no longer being publicly traded.

See the rest of the story at Business Insider