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Tesla Offers £1.91bn To Buy SolarCity

Saheli June 22, 2016 Technology Comments Off on Tesla Offers £1.91bn To Buy SolarCity

New Tesla Model 3 electric car

Tesla Motors has made a bid to acquire SolarCity – a US company that designs, finances and installs solar power systems – in an attempt to boost its clean energy business.

The electric car maker’s offer is estimated to be worth about $2.8bn (£1.91bn), sending the company’s shares soaring.

Shares in Tesla dropped more than 13% in extended trading, while shares in SolarCity climbed 18%.

Tesla’s chief executive, Elon Musk, described the deal as a “no brainer” and natural expansion for the business that alongside being a market leader in electric cars, has been selling batteries that can power homes since last year.

“Instead of making three trips to a house to put in a car charger and solar panels and battery pack, you can integrate that in a single visit,” he said.

The merger would build on an existing partnership between the two companies, under which SolarCity uses Tesla batteries as part of its solar projects, according to Tesla.

Mr Musk, who is also chairman of SolarCity and the largest shareholder of both companies, said the deal was an “obvious thing to do” to expand both companies’ markets.

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