NEW YORK (TheStreet) -- Tesla Motors  (TSLA)  expects its proposed acquisition of renewable energy company SolarCity (SCTY) to add more than $500 million of cash to Tesla's balance sheet over the next three years.

Tesla also expects SolarCity to "immediately account for 40% of the assets of the combined company on a historical cost basis" and contribute more than $1 billion in revenue in 2017. 

The majority of SolarCity's debt is for project financing, non-recourse and "more than offset by the cash flows from customer payments," according to a company statement. 

Tesla CEO Elon Musk is the chairman of SolarCity.

The planned merger was worth $2.6 billion when it was publicly announced earlier this year.

Shares of Tesla and SolarCity were slightly higher in after-hours trading on Tuesday.

Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D+.

Tesla's weaknesses include a generally disappointing historical performance in the stock itself.

You can view the full analysis from the report here: TSLA

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

More from Markets

Alphabet, Caterpillar, Coca-Cola and Amazon - 5 Things You Must Know

Alphabet, Caterpillar, Coca-Cola and Amazon - 5 Things You Must Know

Apple Suppliers Slide After European, Asian Chipmakers Echo Smartphone Concerns

Apple Suppliers Slide After European, Asian Chipmakers Echo Smartphone Concerns

Global Stocks Edge Higher, But Bond Yields, Oil Prices May Test Market Strength

Global Stocks Edge Higher, But Bond Yields, Oil Prices May Test Market Strength

SAP Shares Leap After Cloud Business Prompts Full-Year Guidance Upgrade

SAP Shares Leap After Cloud Business Prompts Full-Year Guidance Upgrade

Sohn Conference Briefly Distracts From Barrage of Earnings -- ICYMI

Sohn Conference Briefly Distracts From Barrage of Earnings -- ICYMI