SolarCity Shares Soar with Tesla's Bid for the Company
On Tuesday, Tesla offered to acquire SolarCity Corp in a stock deal worth almost $2.8 billion.
Musk is the chairman of SolarCity and CEO of Tesla along with being the biggest shareholder of the companies. The company is making an effort to become a one stop solution for the customers who want to buy an electric car, a solar system and a home battery and all together. All in a bid to build a clean energy powerhouse, Tesla's offer for SolarCity is a stock deal.
However, Tesla's shares dropped thirteen percent of more to $189.99 during extended trading which amounted to loss in value of approximately $4.3 billion and also greater compared to the value which Tesla has offered for the other company. SolarCity shares scaled almost eighteen percent to $25.02.
Musk told the reporters, "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."
The two companies aim to create a home energy network which cuts down the use of fossil fuels. According to Musk describes the deal as a "blindingly obvious."
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