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Elon Musk’s Tesla plans to acquire Elon Musk’s SolarCity for $2.7B in stock

TechCrunch TechCrunch 21/06/2016 Josh Constine

The great Elon Musk empire is consolidating. Today electric car and battery company Tesla announced its offer to acquire solar panel installation company SolarCity. Recently SolarCity had its value downgraded, making it an easier acquisition target. Together the companies could allow you to outfit your home with solar panels that power a giant battery for everything inside as well as your electric car.

The deal still has to be approved by SolarCity and its board. If it goes through, it would see SolarCity stock exchanged for Tesla stock. The deal would pay a premium of 21% to 30% on top of SolarCity’s value of $2.14 billion, so Tesla would be buying SolarCity for between $2.59 billion and $2.78 billion worth of its stock.

The Tesla team writes “It’s now time to complete the picture. Tesla customers can drive clean cars and they can use our battery packs to help consume energy more efficiently, but they still need access to the most sustainable energy source that’s available: the sun.”

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