In the interim, financing was put on hold until the deal closed.
SolarCity's net loss attributable to shareholders widened to $US55.5 million, or 56 cents per share, from $US22.4 million, or 23 cents per share. The Silevio facility is located in NY state. The modules are expected to be produced at SolarCity's under construction 1GW factory in Buffalo, NY.
What's so special about SolarCity's new product?
"The interesting thing about this is that it actually doesn't cannibalize the existing product of putting solar on a roof", Musk said.
Right now, most households spend between $5 and $15,000 to install solar on their roof for between 8 and 20 photovoltaic panels, largely limited by cost and return on investment.
SolarCity wants to reinvent the concept of a solar roof, and design a roof made from solar panels, not fitted with solar panels, as seen above.
"So, there is a huge market segment that is now inaccessible to SolarCity because people know they're going to have to replace their roof", he said.
SolarCity Chief Executive Lyndon Rive, Musk's cousin, said there are 5 million new roofs installed in the US every year.
This problem means SolarCity would need to create a new kind of solar, one that can deal with a hole being drilled through it, in the same way a builder or electrician cuts through tin or opens up tiles.
The less than stellar quarterly report did not slow down Elon Musk, however, who took the occasion to announce a new product that would combine a roofing product that incorporates solar panels with energy storage and software to integrate the solar-plus-storage system with the grid.
SolarCity believes that "solar is competitive in a significant portion of the United States".
If Elon Musk has his way, a roof entirely made of solar-gathering materials could one day be used to power homes.
By merging Tesla and SolarCity, Musk hopes to create a single defining product: "A smoothly integrated and handsome solar-roof-with-battery product that just works, empowering the individual as their own utility, and then scale that throughout the world". Tesla missed several production goals with its Model X and S vehicles and I believe there are inherent manufacturing hurdles with any new product.
"I haven't inquired about the details and I'm not privy to the details, but it's what they concluded is fair, between independent board members of SolarCity and board members of Tesla", he said.
"When a customer needs to upgrade his roof, it's something that bugs him for a long time", Rive said.