tesla offers up to $2.8b for solar panel maker solarcity - residential energy storage systems

Tesla Motors (TSLA -Get Report)
Surprise stock offers up to $2.
SolarCity 8 billion, struggling solar energy company (SCTY)
After Tuesday's close, the market will merge the two companies
The Empire of entrepreneur Elon Musk is under the roof of a company.
Tesla said in a blog post that it would offer $26. 50 to $28.
SolarCity's share price is £ 50 per share, and, like Tesla, the company sees Musk as the owner of more than 20% of its shares. In after-
The news pushed shares in SolarCity up to 16. 1% gain at $24.
Tesla shares plummeted. 7% to $194. 01.
The offer, after due diligence and final agreement, was 21% premium to $21 at SolarCity's close on Tuesday. 19.
The bid will have to be approved by the majority of shareholders of the two companies who are "not interested", Musk and Antonio grecias, just as Musk was a board member of the two companies, he avoided voting on the proposal in the deliberations of Tesla and SolarCity boards.
Tesla said that since Musk is a shareholder of the two companies, it will publicly disclose the bid, but said it intends to continue to bid "on a friendly basis only.
SolarCity said in a regulatory document that it will carefully evaluate the proposal, and CEO Lyndon Reff told employees that "there is a huge synergy between the two companies . ".
Ryan and Musk are cousins.
SolarCity is San Mateo, California.
Solar systems for families, businesses and governments, while Tesla is a company in Palo Alto, California.
Manufacturers of electric vehicles and residential energy storage systems.
Unlike Tesla, SolarCity has recently been in trouble, losing more than half its value in the past 12 months before Tesla's offer.
A possible solar supplier reported that,than-
Quarterly losses are expected throughout the year and cloudy guidelines are issued.
Jim Chanos, a famous short seller at the time, predicted that the company would face financial difficulties this year, including more than $0. 5 billion in quarterly cash consumption in the coming quarters, solarCity is called a "secondary" financial company.
Tesla said in its blog post that the purchase of SolarCity and the addition of solar power to its product suite will "complete the painting," provide a vision for the future where customers can drive Tesla cars, residential battery pack charged using SolarCity panel.
The company saw the opportunity to cross.
Sell the SolarCity panel at the Tesla store and have the SolarCity installers work with the Tesla residential battery.
The company said it would be "the only vertically integrated energy company in the world ".
"While Tesla is the most famous automaker, Musk has talked many times about the potential for energy generation and storage, and said at the annual general meeting of automakers last month, he believes the potential of Tesla's energy storage business will one day exceed the demand of electric vehicles.
However, from Tesla's point of view, the deal is full of risks.
Musk has set a bold schedule for automakers to start rolling out lower cars
Priced Model 3 vehicles, the deadline is set to produce 500,000 vehicles before 2018, and 1 million vehicles per year before 2020.
The company raised $1 earlier this year.
The 4 billion-month stock was sold to research and development and production of the fund model, but analysts warned that Tesla might still need more money to build its capabilities. Adding money-
Losing SolarCity seems to only put pressure on Tesla's balance sheet, a consolidation that could distract Tesla's management from its car goals.
But Musk, who is also the CEO and founder of the privately held rocket maker space exploration technology (SpaceX), is already one of the busiest CEOs in the corporate world in the United States, through some arguments, reducing his responsibility from two listed companies to a larger one will give him more time to invest in Tesla.