Elon Musk’s Tesla Motors Inc said on Tuesday it has made an offer to acquire solar panel maker SolarCity Corp in an all-stock deal worth as much as $2.8 billion, as the electric car maker looks to get into the market for sustainable energy for homes and businesses.
Musk, who is also the chairman and principal shareholder of SolarCity, described the deal as “no brainer” in a call with reporters.
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Tesla said it offered $26.50 to $28.50 per share for SolarCity, which represents a premium of about 25 percent to 35 percent to the company’s Tuesday close of $21.19. That values the deal at about $2.6 billion to $2.8 billion overall.
Tesla makes premium electric vehicles that sell for about $70,000 to $150,000, as well as home battery storage units. SolarCity is the No. 1 residential solar company in the United States.
Tesla shares plunged 10 percent to $196.75 in extended trading on Tuesday, while SolarCity shares rose about 23 percent to $26.05.