Research on Vertical Synergy and Financial Contributions: A Case Study on Tesla and Solar City

Heming Chen

2025

Abstract

To understand the synergy effect of vertical merger in positive and negative aspects, this paper takes the vertical merger of Tesla and SolarCity as the case study example. More specifically, this research focuses on the integration of electric vehicle manufacturer as well as solar energy production in aspects of cost reduction, sales synergy and market expansion. Internal financial data and industry reports on the vertical merger implicates that the vertical merger case can result in cost savings in differed operational aspects, in sales bundling and synergy as well as in market expansion in renewable energy sector. Despite that, vertical merger also leads to challenges in aspects of cultural clash, the surge in long-term debt as well as antitrust litigation costs and risks. This research is meaningful as critical financial data in short and long term is analyzed to understand synergy effects. Overall, this paper implicates that vertical integration can enhance competitiveness given sales and market synergy and economies of scale, but needs to be managed carefully in cultural, financial and regulatory aspect.

Paper Citation

in Harvard Style

Chen H. (2025). Research on Vertical Synergy and Financial Contributions: A Case Study on Tesla and Solar City. In Proceedings of the 2nd International Conference on Engineering Management, Information Technology and Intelligence - Volume 1: EMITI; ISBN 978-989-758-792-4, SciTePress, pages 130-137. DOI: 10.5220/0014322800004718

in Bibtex Style

@conference{emiti25,
author={Heming Chen},
title={Research on Vertical Synergy and Financial Contributions: A Case Study on Tesla and Solar City},
booktitle={Proceedings of the 2nd International Conference on Engineering Management, Information Technology and Intelligence - Volume 1: EMITI},
year={2025},
pages={130-137},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0014322800004718},
isbn={978-989-758-792-4},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on Engineering Management, Information Technology and Intelligence - Volume 1: EMITI
TI - Research on Vertical Synergy and Financial Contributions: A Case Study on Tesla and Solar City
SN - 978-989-758-792-4
AU - Chen H.
PY - 2025
SP - 130
EP - 137
DO - 10.5220/0014322800004718
PB - SciTePress