| Title | Tesla and SolarCity Reach Agreement to Combine | |
| Date | Tuesday August 02 2016, @03:18AM | |
| Author | janrinok | |
| Topic | ||
| from the let-it-shine,-let-it-shine dept. | ||
As will no doubt be reported everywhere shortly, Tesla and SolarCity have reached a deal for Tesla to buy SolarCity. The Wall Street Journal says, "The all-stock deal values SolarCity at about $2.6 billion, with SolarCity stockholders receiving 0.11 share of Tesla for each share of SolarCity, valuing them at $25.83 apiece, according to Friday's closing prices. The deal's value comes in lower than the original range of $26.50 to $28.50 per share Tesla had proposed in June. Mr. Musk said Monday he wasn't involved in talks about the valuation of the purchase."
Electric vehicle maker Tesla expects to achieve "significant" cost savings and "dramatic improvements" in manufacturing efficiency as a result of the acquisition of solar panel installer SolarCity, Tesla Chief Executive Officer Elon Musk said on Monday.
Musk said the combined companies will have a "stronger balance sheet," but likely will require a "small equity capital raise" next year. Both companies have been burning through cash and have projected achieving positive cash flow later this year.
Musk is the largest shareholder in both companies and is chairman of SolarCity. His cousins Lyndon Rive and Peter Rive are co-founders of SolarCity.
Source: Reuters
Additional reporting here and here.
Original Submission 1 - Original Submission 2
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printed from SoylentNews, Tesla and SolarCity Reach Agreement to Combine on 2026-10-14 04:16:36