Tesla offers all-stock deal that values SolarCity at $2.5 billion. Musk was already a large shareholder at SolarCity.
Musk announces that Musk will review Musk's offer to buy Musk's company, says Musk. $TSLA $SCTY
— The Daytrade™ (@d4ytrad3) June 21, 2016
On the one hand, this is cool from a vertically-integrated clean energy offering:
Musk saw this as a compelling solution and a “no-brainer” where a consumer can go into a store and “with a few clicks” buy an electric vehicle, a solar system and an energy storage system. It makes “more effective use of our stores said Musk.
On the other hand, neither SolarCity nor Tesla have shown any interest in making money, and neither is close to profitable. Combining them will probably hasten bankruptcy (most likely) or world-domination (possibly).
One of GTM’s analysts said, “A 21-30 percent premium on a depressed stock price, paid entirely in equity in another risky company. Don’t know that I’d take this as a SCTY shareholder.”