Elon Must the Founder and CEO of Tesla Motors wants to merge his electric car business with the solar companies for some specific reasons. Both his ventures are business innovations that have disrupted the market and he wants to leverage their capacities for one another. The first major advantage is that Solar City has struggled with funds and may have tried to grow too fast while Tesla remains a much bigger brand and thus a magnate for investments. The latter will help the former meet its financial requirements. These two companies have both originated from Elon Musk’s ideation and eventually the idea is to vertically integrate them in the renewable energy cycle. Equally importantly Musk is an entrepreneur by instinct and his friends, many of whom are now investors believe in his vision. At his point, Musk believes in the long run, this association will help and so the investors similarly back him for the same.

Source: http://fortune.com/2016/06/22/elon-musk-merge-tesla-solarcity/