Some industry analysts suggested that Elon Musk was pushing for Tesla to acquire SolarCity in order for the automaker to help secure financing for a company that consistently requires more cash to provide it services with little to no upfront cost.
But it looks like SolarCity is doing just fine on the capital raising front ahead of the merger as it just secured another $300 million fund for a total close to $1 billion since the board announced it accepted Tesla’s acquisition offer.
Last month, SolarCity announced $305 million in cash equity financing from Quantum Strategic Partners advised by Soros Fund Management, followed by another $347 million through two funds by Citi.
The new $300 million fund is in collaboration with Credit Suisse:
“SolarCity Corp. (SCTY) today announced that it has created a new fund to finance more than $300 million in solar projects with Credit Suisse. The fourth such collaboration between SolarCity and Credit Suisse will allow thousands of homeowners in the U.S. to pay less for solar electricity than they pay for utility bills.”
Tesla and SolarCity shareholders will be voting to approve the merger on November 17. If the proposal is accepted, the money from this fund could be the first used by the new combined companies to install solar and energy storage installations.