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As Jacob Wolinsky first wrote after Tuesday's late announcement that Tesla (TSLA) is offering to buy Solar City (SCTY), "Literally speechless and confused ... Since the CEO of both companies is the same and there are many financial arrangements between SolarCity and another Elon Musk company, SpaceX ..."

The Fly revealed SolarCity's CEO's memo, in which he says he is excited and will of course recuse himself from the decisionmaking - isn't that just what you want to hear from the CEO of the company that's an acquisition target? Is it because Elon Musk has bailed out SolarCity to the tune of hundreds of millions already? Or because they are cousins?

Tim Knight points out that after hours, SCTY stock has soared 28% while TSLA has 'only' dropped 10% - which sounds good until you realize that Tesla's market cap is 16x that of SCTY, so the shareholder destruction at TSLA is much more substantial.

Initial headlines around the 'net are brutal:

Forbes: Elon Musk's Fortune Down $700 Million Following Tesla's Offer To Buy SolarCity

Barron's: Wait, Tesla wants to Buy Solar City!?!?!

Seeking Alpha: Tesla And SolarCity: No Matter How You Add It 0+0≠1

If you want a better understanding of the convolutions behind the relationships between these companies, the WSJ has a really good chart and accompanying article here.