Tesla agrees to $2.6B price tag for SolarCity merger
- Tesla Motors Inc. announced Monday it had reached a price to buy SolarCity Corp., the nation's largest rooftop solar installer, for $2.6 billion.
- Under the all-stock deal, SolarCity shareholders would receive 0.11 shares of Tesla for each SolarCity share, valuing them at $25.83 apiece, according to Friday's closing prices.
- The agreement also includes a 45-day "go-shop" period, during which SolarCity may solicit offers from other companies. Tesla expects a shareholder vote after that period ends on Sept. 14, with the deal closing in the fourth quarter of the year.
When Telsa CEO Elon Musk announced in late June that he would try to buy SolarCity, headed by his cousin Lyndon Rive, the strategy seemed more thought-out than the deal itself.
In a press call, Musk laid out a new-look Tesla that would combine stationary solar and storage with electric transport, all in a one-stop shop.
“You’d walk into the Tesla store and say: ‘I’d like a great solar solution with a battery and an electric car,’ and in five minutes you’re done,” Musk said. “It’s completely painless, seamless, easy and that’s what the customer wants.”
- The Wall Street Journal Tesla and SolarCity Agree to $2.6 Billion Deal
- Electrek Tesla and SolarCity agree on a $2.6 billion deal, 45-day ‘go shop’ period
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