Cuomo likes idea of possible SolarCity takeover by Tesla
News that Tesla Motors may purchase Solar City is drawing mixed reactions. While some are concerned the development projects poorly on the future of the company's solar panel manufacturing plant in South Buffalo, Governor Cuomo says he "can't see anything but good" coming from the merger.
In offering to buy Solar City, Tesla Motors says the merger would benefit the shareholders, customers and employees of both companies. As for Solar City's future manufacturing site in Buffalo's Riverbend section, it's a new twist for a $750 million project that has already drawn its share of controversy.
"If Tesla takes over Solar City, that makes the company that much stronger," Governor Andrew Cuomo told reporters during his visit to Buffalo Wednesday.
"Tesla is a $20 billion company. Solar City is a $2 billion company."
It was the governor who enticed Solar City to South Buffalo by supplying the company with a $750 million factory. He sees no reason why Solar City would scale back its plans if the deal with Tesla goes through.
"There is no doubt that (Tesla owner) Elon Musk is an international figure in this space. So, we're comfortable with Solar City. It's a major company. It has significant resources," Cuomo pointed out.
Musk and Solar City's CEO Lyndon Rive are cousins. Musk chairs Solar City's board and he owns a 22 percent stake in the company. The proposed sale must still be approved by both company's shareholders.
Tesla announced their all-stock purchase offer in a blog post Tuesday night.