In lieu with the Elan Musk’s plan to combine his electric-car and Solar energy company, Tesla Motors (NASDAQ:TSLA) and SolarCity Corp. (NASDAQ:SCTY) announced on Monday that they have reached on an agreement through which Tesla Motors will buy SolarCity Corp. for $2.6 billion. This offer of $2.6 billion is $300 million less than the initial offer. Elan Musk is the largest shareholder in both the companies.
Under the agreement, the SolarCity Corp. (NASDAQ:SCTY) shareholders will be getting $25.37 a share whereas initially Musk offered $26.50 to $28.50 a share in Tesla Stock. The SolarCity Stockholder will get 0.11 share of Tesla against there each share of SolarCity.
After the approval of the deal, the Tesla’s workforce will get doubled to approximately 30,000 employees. This deal will create a unique synergy of Solar, Storage and transportation.
The current offered price is approximately half of what SolarCity was trading in the beginning of this year. SolarCity Corp’s stock tumbled this morning in New York whereas Tesla Surged 66 cents to $235.45.
In the vision of Musk, after this agreement the company will become a clean energy giant producing the electric cars with the solar panels on their roofs and battery storage systems in the trunks. This is shown to be the biggest deal of this industry by far.
Tesla Motors (NASDAQ:TSLA) has current market capitalization at 34.78 billion whereas SolarCity Corp. (NASDAQ:SCTY) has a market capitalization of 2.49 billion.