The deal aims to make Tesla a one-stop shop for solar panels, storage, and electric cars. Fred Katayama reports.
Tesla is buying SolarCity in its bid to create a solar energy powerhouse. The electric car maker will pay $2.6 billion in shares. That's a 3.4 percent premium for the solar panel company. By combining the two, Tesla CEO Elon Musk plans to offer consumers one-stop shopping for solar energy, storage, and electric cars. Alex Laugharne of commodities research firm, Cru Consulting: SOUNDBITE: ALEX LAUGHARNE, PRINCIPAL CONSULTANT, CRU CONSULTING, (ENGLISH), SAYING: "Use of solar panels goes very well with energy storage. So you can see the synergies there on that side because the two applications go very closely together. So I think If it means that Tesla can therefore bring down the cost of power and make it more useable for personal, family and home and also for commercial applications, then it could be quite an important step." Elon Musk, who is chairman of both companies, recused himself from voting on the deal. His cousins are the founders of SolarCity. He has managed to convince many skeptical shareholders. Tesla shares have recovered after suffering a 10 percent drop when he announced the acquisition offer in late June. SolarCity's stock, which had risen 26 percent since then, fell in early trading.