Elon Musk’s Tesla bids R41bn to buy his other firm, SolarCity. Shares in Tesla drop 12%

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Tesla Motors, the well-known electric car company founded by South African-born Elon Musk, has made a $2.8bn (R41bn) offer to buy SolarCity, the not-so-well-known company that fits photovoltaic panels to homes and businesses in the US, also founded by Elon Musk.

In a statement to shareholders issued late yesterday, Tesla says that the purchase would create a vertically integrated clean energy company which takes power from the sun all the way to your car or, indeed, your home if you’re lucky enough to own a Tesla Powerwall battery.

We would be able to maximize and build on the core competencies of each company. Tesla’s experience in design, engineering, and manufacturing should help continue to advance solar panel technology, including by making solar panels add to the look of your home. Similarly, SolarCity’s wide network of sales and distribution channels and expertise in offering customer-friendly financing products would significantly benefit Tesla and its customers.

SolarCity saw a drop in its share value last month after posting a larger than expected loss. It’s price is up nearly 15% today on the news that Tesla wants to pick it up. Tesla, however, has not fared well at the hands of investors: its share price has plunged by 12.23% since last night (although they are still higher than they were at the close of last week).

tesla shares

Adam Oxford

Adam Oxford

Adam is the Editorial Director at htxt media. He has been writing about technology for almost two full decades now. In a previous life, he was the editor of PC Format and Digital Camera Shopper in the UK, before going on to work as a freelance journalist for seven years. His work has appeared in or on Stuff, The Guardian, Linux Format, TechRadar, Wired.co.uk, PC Gamer, Green Futures, The Journalist, The Ecologist and The Review. Adam moved to South Africa in 2012 and loves 3D printers, MakerFairs and tech hubs. He hates seafood. None of his friends remember this when cooking.