The way Tesla sees it, linking up a solar panel, Powerwall battery and Model S/3/X electric vehicle means offering a more efficient way for customers to consumer energy that's vertically integrated. On a call with reporters, Elon Musk said the all-stock deal would end up with a price between $2.5 and $3 billion. He also said that it shouldn't impact plans for the Model 3 or Gigafactory going forward. According to Musk, "we're not an automotive company," pointing at the bigger issues it hopes to address around providing and using sustainable energy sources.

Musk and Solar City/Tesla board member Antonio Gracias have recused themselves from voting on the proposal on either end, and the deal is subject to approval by both company's shareholders and boards of directors.