SolarCity and Tesla Energy
Main articles: SolarCity and Tesla Energy
Two green vans sporting the SolarCity logo
SolarCity solar-panel installation vans in 2009
Musk provided the initial concept and financial capital for SolarCity, which his cousins Lyndon and Peter Rive founded in 2006.[137] By 2013, SolarCity was the second largest provider of solar power systems in the United States.[138] In 2014, Musk promoted the idea of SolarCity building an advanced production facility in Buffalo, New York, triple the size of the largest solar plant in the United States.[139] Construction of the factory started in 2014 and was completed in 2017. It operated as a joint venture with Panasonic until early 2020.[140][141]
Tesla acquired SolarCity for $2 billion in 2016 and merged it with its battery unit to create Tesla Energy. The deal's announcement resulted in a more than 10% drop in Tesla's stock price; at the time, SolarCity was facing liquidity issues.[142] Multiple shareholder groups filed a lawsuit against Musk and Tesla's directors, stating that the purchase of SolarCity was done solely to benefit Musk and came at the expense of Tesla and its shareholders.[143][144] Tesla directors settled the lawsuit in January 2020, leaving Musk the sole remaining defendant.[145][146] Two years later, the court ruled in Musk's favor.