Elon Musk is trying to merge his empire by making Tesla one of his companies to acquire another of his installation SolarCity. Tesla a company focusing on making electric cars and batteries will now acquire the solar panel company called SolarCity. The companies when combined will form a nice home for Elon Musk, who is the founder and majority shareholder of the two companies.
It is said that the SolarCity board has already approved the deal for merging with Tesla Motors. If the deal is signed, it will see SolarCity stock exchanged for Tesla stock. The deal will see Tesla has to pay around $2.79 billions for the company stock and get SolarCity on its side.
Even with such a high value for SolarCity, it would have been even expensive to acquire it a few years ago. SolarCity had been bleeding hundreds of millions that just made it an easy target to acquire without having to spend much. A lot has changed now with the shares of SolarCity growing with 20 percent hours just after the news was made.
The news also affected Tesla’s share price by around 13 percent. This was made as some people saw that it as an aim of the company to try and bail out SolarCity. It is possible that Musk could have saved his own company from sinking, but he would have to burn a lot more of his millions first.
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