Elon Musk's Tesla has announced that it wants to purchase Elon Musk's SolarCity. Wait, what?
You might know Elon Musk as the founder and CEO of Tesla and SpaceX, and as the guy who wants to nuke Mars and thinks we're all living in The Matrix. But he's also co-founder, chairman, and majority shareholder of SolarCity.
SolarCity is a sustainable energy company that Tesla has worked with in the past, and now the electric car company has announced it intention to buy it. Or rather, acquire it.
No cash will change hands in the deal. Rather, there will be a stock exchange which would equate to a premium of approximately 21 percent to 30 percent over the closing price of SolarCity's shares.
So what would Tesla do with its new solar company?
"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" reads a company statement.
As such, the acquisition would result in "the world's only vertically integrated energy company offering end-to-end clean energy products to our customers."
Tesla is essentially looking to enable a complete sustainable energy future, where you car and home are predominantly powered by solar energy. It seems Tesla would offer SolarCity products through its own Tesla stores.
The deal still needs approval from shareholders of both companies, and there's no news on possible timing just yet.