Tesla Inc

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7:59:58 PM EDT: $192.34 +1.19 (+0.62%)
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Tesla Motors Inc. Makes Bid to Buy SolarCity Corporation

Tesla Motors to Acquire SolarCity Corporation

CNBC just reported that Tesla Motors Inc. (NASDAQ:TSLA) has put in a bid to acquire SolarCity Corporation (NASDAQ:SCTY). Tesla Motors stock is down to $203 in the after hours session from a $219 close as SolarCity Corporation stock has popped from a closing price of $21 to now over $26.

Reuters has reported that Tesla bid $26.50-28.50 per share, which would represent a premium of about 25-35 percent to SolarCity's Tuesday close.

Of course, Tesla CEO Elon Musk is the chairman for SolarCity, which was founded and is run by his cousins but Musk funded.

The logic behind the takeover, as far as we can tell, is Tesla Motors' other business -- energy storage.

Tesla has long discussed the home power storage product called Powerwall and on May 4th Bloomberg reported that the first wave of residential installations has started in the U.S. The details of that business, and why it may be larger than the automotive business are available to CML Pro members.

In a press release the two companies wrote: "In March 2015, we launched Tesla Energy, which through the Powerwall and Powerpack allow homeowners, business owners and utilities to benefit from renewable energy storage. It's now time to complete the picture."

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The story is developing.

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Thanks for reading, friends. The authoris long tesla stock.

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