Tesla bid £1.91 billion for SolarCity

Tesla Motors Inc (NASDAQ:TSLA) have made an offer of £1.91 billion in a ‘no brainer’ deal that would see the electric car manufacturer buy the solar panel firm SolarCity to boost its clean energy business.

The stock deal that is worth £2.8 billion would see the company sell customers a triple package containing an electric car, a home battery and a solar system.

Chairman of SolarCity and chief executive of Telsa Moters Inc, Elon Musk, described the deal as a ‘no brainer’ as the move would bring the two companies closer together on an existing partnership that would see SolarCity include Tesla batteries in it’s solar projects.

“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……It’s an obvious thing to do.” Said Elon Musk, largest shareholder of both companies.

The bid has seen shares in Telsa plunge more than 13% to $189.99 , a total loss of $4.3 billion. Shares of SolarCity (NASDAQ:SCTY) however soared up to 18% to $25.02.

22/06/2016

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