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.