Tesla to Acquire SolarCity for $2.6 Billion

Tesla to Acquire SolarCity for $2.6 Billion
Elon Musk, CEO of Tesla Motors Inc., introduces the Model X car at the company's headquarters in Fremont, Calif., Sept. 29, 2015. Tesla faces shareholder lawsuits that may delay its proposed merger with SolarCity. AP Photo/Marcio Jose Sanchez
Emel Akan
Emel Akan
Reporter
|Updated:

Tesla and SolarCity announced on Aug. 1 that they reached an agreement to merge. Both companies’ boards of directors approved Tesla’s proposal from June 21.

Tesla Motors Inc. (TSLA:NASDAQ) agreed to buy SolarCity Corp. (SCTY:NASDAQ) in an all-stock deal, which valued the solar energy company at $2.6 billion. Elon Musk is the chairman and largest shareholder of both companies. Lyndon Rive, the CEO of SolarCity is a cousin of Elon Musk.

“Solar and storage are at their best when they’re combined,” stated Tesla in its blog. With Tesla being the storage and SolarCity the solar company, the combined entity aims to create fully integrated residential, commercial, and grid-scale products.

The companies expect to achieve cost synergies of $150 million in the first full year after closing.
Emel Akan
Emel Akan
Reporter
Emel Akan is a senior White House correspondent for The Epoch Times, where she covers the policies of the Trump administration. Previously, she reported on the Biden administration and the first term of President Trump. Before her journalism career, she worked in investment banking at JPMorgan. She holds an MBA from Georgetown University.
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