Tesla seeking to acquire sustainable energy company SolarCity

PanARMENIAN.Net - Tesla is making a bid to acquire sustainable energy company SolarCity, Tesla announced Tuesday, June 21, according to the Verge.

"We are pleased to submit to you and the SolarCity board of directors a proposal to acquire all of the outstanding shares of common stock of SolarCity in exchange for Tesla common shares," the company wrote in a letter announcing the proposed deal. Rather than paying cash, Tesla is offering a stock-swap deal at a premium of about 21 to 30 percent over the price of SolarCity's shares. The deal values SolarCity at up to $2.8 billion.

Tesla has previously partnered with SolarCity on energy-related business, and Elon Musk was a co-founder of the energy company, which is run by his cousin. Musk is also Chairman of the SolarCity board, and the largest shareholder of both companies. SolarCity is not profitable as of its most recent earnings report, but hopes to be by the end of the year. It has more than $3 billion in debt.

In a conference call with reporters, Musk called the proposed deal "an incredibly compelling solution," and outlined his plan should the deal go through: eventually, SolarCity products would be offered under the Tesla brand, and customers will be able to purchase them in Tesla stores.