![\"Tesla](\"https:\/\/www.businesspundit.com\/wp-content\/uploads\/2016\/06\/Tesla-buying-SolarCity.jpg\")
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Tesla has made a bid worth about $3 billion to buy SolarCity.<\/p>\n
Tesla chief Elon Musk told reporters that he envisions a Tesla store where customers could take care of all of their sustainable energy needs in a matter of minutes.<\/p>\n
“Five minutes, you’re done,” said Musk, who owns 22% of SolarCity and is its chairman. “Completely seamless, painless. Easy and everything just works. That’s what people want.”<\/p>\n
Tesla has had an amazing year with nearly 400,000 preorders for its upcoming Model 3, a $35,000 electric car that Musk is promising to deliver in late 2017.<\/p>\n
Based on pre-orders the Model 3 will become one of the best-selling cars in the country.<\/p>\n
Musk says the SolarCity acquisition is a “no-brainer” that will not impact Model 3 plans or its Gigafactory, the giant factory it’s building in Nevada to manufacture batteries.<\/p>\n
The CEO’s vision for the buyout is to produce an integrated product offering between Tesla and SolarCity.<\/p>\n
“It’s the ultimate renewable energy dream,” said Karl Brauer, a senior analyst at Kelley Blue Book. “It makes a lot of sense for them to be combined as a single company.”<\/p>\n
The two companies have been working together for a while now and understand each other’s cultures.<\/p>\n
Tesla is offering $26.50 to $28.50 per share, a premium of more than 20% to SolarCity’s closing price Tuesday.<\/p>\n
In after-hours trading, SolarCity’s stock jumped 17% and Tesla’s dropped by 11%.<\/p>\n
Musk’s rocket company SpaceX has purchased $214 million in “solar bonds” from SolarCity.<\/p>\n
Musk’s cousin Lyndon Rive is the chief executive of SolarCity. Rive told reporters he was “very excited” about the possibility.<\/p>\n
Brauer admits that its odd for two companies who have never made a profit to merge.<\/p>\n
“It’s like the country that’s been broke forever and never made any money trying to annex another country,” Brauer said. “Shouldn’t somebody be annexing you?”<\/p>\n
Shareholders from both companies still need to approve the deal.<\/p>\n","protected":false},"excerpt":{"rendered":"
Tesla has made a bid worth about $3 billion to buy SolarCity. Tesla chief Elon Musk told reporters that he envisions a Tesla store where customers could take care of all of their sustainable energy needs in a matter of minutes. “Five minutes, you’re done,” said Musk, who owns 22% of SolarCity and is its […]<\/p>\n","protected":false},"author":48,"featured_media":68694,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[25,26,8281,7372],"tags":[6231,11313,7860],"class_list":{"0":"post-68693","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"category-finance","9":"category-markets","10":"category-technology","11":"tag-elon-musk","12":"tag-solarcity","13":"tag-tesla"},"acf":[],"wps_subtitle":"","_links":{"self":[{"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/posts\/68693","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/users\/48"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/comments?post=68693"}],"version-history":[{"count":2,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/posts\/68693\/revisions"}],"predecessor-version":[{"id":68696,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/posts\/68693\/revisions\/68696"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/media\/68694"}],"wp:attachment":[{"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/media?parent=68693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/categories?post=68693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/tags?post=68693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}