Tesla to buy SolarCity in $2.6Bn deal

Tesla and SolarCity have reached a deal which marks the next step in the plan to combine electric-car and solar-energy.

Following the second instalment of Tesla’s “masterplan” which highlighted plans to ““accelerate the advent of sustainable energy”, Tesla Motors Inc announced on Monday that a $2.6Bn (£2M) deal had been reached with SolarCity.

The deal was announced on Tesla’s website saying: “Solar and storage are at their best when they’re combined.”

The deal represents Chief Executive of Tesla, Elon Musk’s next steps forward with his plan to combine his electric-car and solar-energy companies.

Under the deal, SolarCity has until 14 September 2016 to consider offers from other potential buyers.

Mr Musk previously describing the deal as a “no brainer”.

Mr Musk said the decision on Monday regarding the valuation of the purchase, at $2.6Bn, did not involve him. The deal was agreed at a lower price than Tesla offered in June.

As part of that strategy, Tesla is opening an enormous new Gigafactory, which will be able to make batteries for much more than cars.

If the deal is approved by shareholders, Tesla’s workforce would double to nearly 30,000 employees and create a unique combination of solar, power storage and transportation, which Tesla says would be the world’s only integrated sustainable energy company.

A special committee of SolarCity board members analysed the offer, compared it to various alternatives and concluded that the deal “is the best outcome for SolarCity shareholders, compared with other outcomes”.

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