[From 1 August] The Tesla Motors merger with SolarCity, announced first approximately on month ago, becomes reality today.
SolarCity System With Tesla Powerwall
Both companies will combine in all stock deal, in which SolarCity stockholders will receive 0.110 Tesla common shares per SolarCity share.
Total equity value of SolarCity stands at ~ $2.6 billion, while Tesla is valuated at approximately $34-$35 billion.
The transaction is to be closed in Q4.
SolarCity now has a 45-day period known as a “go-shop” to see whether there are better options for stockholders.
Elon Musk, who owns more than 20% of shares in both companies, argued that the merger is needed to achieve synergy between solar energy (SolarCity) and energy storage systems (Tesla Motors). After the combination, Tesla will be able to offer various products in the one-stop solar + storage experience.
Read more: Inside EVs