Elon Musk’s Tesla Motors Inc. said it has made an offer to acquire solar panel maker SolarCity Corp. in an all-stock deal worth as much as US$2.8 billion, as the maker of electric cars looks to expand its clean-energy business.
Musk, who is also the chairman and principal shareholder of SolarCity, described the deal as a “no brainer” in a call with reporters Tuesday, Reuters reported.
He said the acquisition of SolarCity would transform Tesla into “the world’s only vertically integrated energy company offering end-to-end clean-energy products to our customers”, from solar panels and home storage batteries to electric vehicles.
Tesla shares fell more than 10 percent to US$195.35 in extended trading on Tuesday — amounting to a loss in value of about US$3.7 billion. SolarCity shares rose about 23 percent to US$26.13.
Musk, who owns 19 percent of Tesla and 22 percent of SolarCity, said he would recuse himself from voting on the deal.
Tesla makes premium electric vehicles that sell for about US$70,000-US$150,000, as well as home battery storage units.
SolarCity is the No. 1 residential solar company in the United States.
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