"Elon obviously has a lot of his plate but no one asks if CEO of GE has too much on his plate."
Michael Morosi, senior research analyst at Avondale Partners, noted that this is a deal that Musk has wanted to do for years.
"In many respects, he's channeling his inner Warren Buffett here by buying SolarCity at a time when sentiment with respect to residential solar has been pretty negative," he said. "I think he's buying an attractive asset at an attractively valued price."
Morosi believes if Tesla acquires SolarCity, it would "certainly" position SolarCity to succeed.
In fact, he sees other companies competing for the same share of this mobility/sustainable home energy platform.
"Homes spend up to $20,000 a year between transportation and energy and that's just a large amount of spend for one company to go after," said Morosi.
He envisions a future where companies compete for durable, high-value, lifetime customers through a subscription model.
— Reuters contributed to this report.
Disclosures: Avondale Partners makes a market in the securities and/or ADRs of SolarCity. Zevenbergen Capital owns shares of Tesla.