Tesla’s Master Plan is Taking Shape as SolarCity Merger Nears Completion

tesla motorsAccording to a Reuters report over the weekend, electric car market Tesla Motors Inc (NASDAQ:TSLA) and solar panel maker SolarCity Corp (NASDAQ:SCTY) are nearing a merger agreement.

The report noted that “have made progress in putting together a deal that will merge the electric car maker and the solar panel installer, people familiar with the matter said.”

Last week, enigmatic Tesla CEO Elon Musk unveiled his master plan for the future of his company, which explicity included a tie-up with SolarCity. Tesla would use SCTY’s solar panels in conjunction with a home battery to store electricity locally for use in the home. The vast majority of homeowners with solar panels now simply send the electricity generated back to their local power company, which in turn gives them a credit.

Tesla shares rose $0.73 (+0.33%) in premarket trading Monday to $223.00 per share. TSLA has fallen 7.39% since the start of the year, but has surged 55% from its February lows of $155 per share.


Meanwhile, SolarCity shares rose to $27.24, up $0.79 (2.99%). SCTY may have an option to shop its deal with Tesla to other potential buyers prior to closing, which could lead to a significantly higher asking price. As of now, we don’t have any details regarding the buyout price.


It’s worth noting that Elon Musk is a large shareholder in both Tesla and SolarCity, so his influence over the merger cannot be understated.

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)

Powered by WPeMatico