Tesla Buying SolarCity in All-Stock Deal Worth $2.6B - NBC Bay Area
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Tesla Buying SolarCity in All-Stock Deal Worth $2.6B

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    Tesla Motors Inc. CEO Elon Musk speaks at the unveiling of the Model 3 at the Tesla Motors design studio Thursday, March 31, 2016, in Hawthorne, Calif. The promise of an affordable electric car from Tesla Motors had hundreds of people lining up to reserve one. At a starting price of $35,000 — before federal and state government incentives — the Model 3 is less than half the cost of Tesla's previous models. (AP Photo/Justin Prichard)

    NEW YORK (AP) - Tesla will pay approximately $2.6 billion for solar panel maker SolarCity in an all-stock deal.

    The transaction gives SolarCity Corp. stockholders 0.110 Tesla common shares per SolarCity share, which puts the value of SolarCity stock at $25.37 per share. Tesla, which is headquartered in Palo Alto, Calif.,  previously said it would offer $23.56 to $25.30 per SolarCity share.

    While electric car maker Tesla Motors Inc. has said that the transaction would create a one-stop shop for cleaner energy, some have questioned the motives behind the deal. Elon Musk is the chairman and biggest shareholder of both companies. And SolarCity is run by his cousin, Lyndon Rive. Musk has insisted he's just showing good business sense.

    The deal is expected to close in the fourth quarter.