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. 

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