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Tesla makes offer to acquire SolarCity

In order to accelerate the world’s transition to sustainable transportation by offering increasingly affordable electric vehicles, and now, the company says its time to complete the picture.
In March 2015, the automaker launched Tesla Energy, which through the Powerwall and Powerpack allows homeowners, business owners and utilities to benefit from renewable energy storage.

"It’s now time to complete the picture. Tesla customers can drive clean cars and they can use our battery packs to help consume energy more efficiently, but they still need access to the most sustainable energy source that’s available: the sun," the company states in a press release.

And in order to make reality of its words, Tesla has officially made an offer to acquire SolarCity. Subject to completing due diligence, Tesla proposes an exchange ratio of 0.122x to 0.131x shares of Tesla common stock for each share of SolarCity common stock. This proposal represents a value of USD 26.50 to USD 28.50 per share, or a premium of approximately 21% to 30% over the closing price of SolarCity’s shares, based on the closing price of June 20.

"We would be able to expand our addressable market further than either company could do separately. Because of the shared ideals of the companies and our customers, those who are interested in buying Tesla vehicles or Powerwalls are naturally interested in going solar, and the reverse is true as well," Tesla writes in the release.


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