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Here’s what it’ll take for Tesla + SolarCity to be a $1Trillion energy company

Elon Musk trees


Elon Musk surprised the business world with one of the most common sense moves I’ve seen in a while – an offering to merge Tesla and SolarCity into a single company. Musk, this morning on a conference call, stated that he sees these companies coming together to become worth $1 trillion. For that to be a realistic valuation, Tesla and SolarCity are going to have to build more Gigafactories (Solar & Battery) and blow through the 1,000,000 car/year number. With a 10:1 earnings ratio, six Gigafactories each for solar & battery plus a 30% expansion of Fremont beyond 1,000,000 cars will do it. Here’s how…