A PYMNTS Company

US: Tesla to buy Elon Musk’s SolarCity in $2.8 billion merger

By  |  June 22, 2016

Elon Musk on Tuesday sought to build a clean energy powerhouse as his electric car maker, Tesla, made an offer to buy his solar installation firm SolarCity in a stock deal worth as much as $2.8 billion.

Tesla shares plunged more than 13 percent to $189.99 in extended trading – amounting to a loss in value of about $4.3 billion, or more than the value of the offer for the other company. Shares of SolarCity rose about 18 percent to $25.02.

Musk, who is the chairman of SolarCity, CEO of Tesla and the largest shareholder of both companies, described the deal as a “no brainer” in a call with reporters. The company could sell customers an electric car, a home battery and a solar system all at once, he said.

“Instead of making three trips to a house to put in a car charger and solar panels and battery pack, you can integrate that into a single visit,” Musk told reporters. “It’s an obvious thing to do.”

Full Content: NBC News

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.