Tesla Motors made headlines on Tuesday after the company offered a whopping $2.79 billion for SolarCity. The multi-billion dollar deal would consolidate Elon Musk’s energy related businesses; creating a one stop shop for businesses and homeowners to get solar power and battery system to store the energy from sunlight after the sun goes down.
Tesla Motors and SolarCity have been developing together a stationary power storage business using SolarCity’s expertise in rooftop solar panels.
In response to the collaboration, Musk said, “Painless, easy” and “everything works,” he told reporters. He is also the chairman of SolarCity.
“The timing is driven by the product and providing compelling solutions to customers,” he further commented.
Tesla has said on its blog that SolarCity will make the company the only “vertically integrated energy company offering end-to-end clean energy products” from car to home to business.
Tesla plans to offer $26.50 to $28.50 a share to SolarCity shareholders through the issuance of Tesla stock, which Tesla says would be a premium of 21% to 30% to SolarCity’s closing price Tuesday and the weighted five-day average Tesla shares.
In response to the news, SolarCity shares were up 17.3% in after hours trading on Tuesday. Tesla shares on the other hand sank 13%.
Disclaimer: We have no position in Tesla Motors Inc. (NASDAQ: TSLA) or SolarCity Corp (NASDAQ: SCTY) and have not been compensated for this article.