Elon Musk, CEO of Tesla, is looking to buy his other company SolarCity for $26.50 to $28.50 per share or about $2.8 billion in a blockbuster deal.
In a notice posted on the Tesla company blog, a combination of Tesla and SolarCity can create a vertically integrated company. The companies will offer end-to-end clean energy products to its customers. This would start with the car that you drive and the energy that you use to charge it, and would extend to how everything else in your home or business is powered. With your Model S, Model X, or Model 3, your solar panel system, and your Powerwall all in place, you would be able to deploy and consume energy in the most efficient and sustainable way possible, lowering your costs and minimizing your dependence on fossil fuels and the grid.
As experts in clean energy, SolarCity is the best at installing solar panel systems, and that expertise translates seamlessly to the installation of Powerwalls and charging systems for Tesla vehicles.
Elon Musk is Chairman of SolarCity and sits on Board of Directors of both companies. According to the notice, Musk has recused himself from voting on the deal along with investor Antonio Gracias, a venture capitalist who also sits on both company boards.
Shares in SolarCity climbed 14% in after-hours trading while shares in Tesla plunged over 12%.