Tesla offers $2.8bn to buy energy firm SolarCity

Elon Musk’s Tesla has made a stock deal offer of $2.8 billion (£1.9bn) to buy his clean energy company SolarCity. Mr Musk, who is the Chairman of SolarCity, CEO of […]

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By Priyanka Shrestha

Elon Musk’s Tesla has made a stock deal offer of $2.8 billion (£1.9bn) to buy his clean energy company SolarCity.

Mr Musk, who is the Chairman of SolarCity, CEO of Tesla and the largest shareholder of both companies, told reporters the deal is a “no-brainer”.

He said: “Instead of making three trips to a house to put in a car charger and solar panels and battery pack, you can integrate that into a single visit. It’s an obvious thing to do.”

In a blogpost, Tesla said the agreement would “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 electric car manufacturer added it would be the world’s only vertically integrated energy company “offering end-to-end clean energy products to our customer”.

Reports claim Tesla’s shares plunged more than 13% following the announcement.

Earlier this year Tesla lost a legal battle against UK power provider Ecotricity and Good Energy said it would challenge the ruling.