3 Solar Stocks To Buy As Tesla Looks To Take Over SolarCity

Tesla Motors Inc. (TSLA - Analyst Report) has offered to buy SolarCity Corp. (SCTYSnapshot Report) in a $2.8 billion deal that would combine the two companies, both of which funded and driven by the Los Angeles billionaire Elon Musk. The deal is, however, subject to approval of “a majority of disinterested stockholders” of both companies.

This all-stock bid valued SolarCity at $26.50 to $28.50 per share, a premium of roughly 21% to 30% over SolarCity’s closing price of $21.19 on Tuesday.

These two companies are exorbitant cash burners as they strive to expand their portfolios. SolarCity is a San Mateo, CA, provider of solar power systems for homes, businesses and governments, while Tesla is a Palo Alto, CA, maker of electric cars and residential energy storage systems.

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Moon Kil Woong 3 years ago Contributor's comment

Please, this makes no sense besides helping Musk by making Tesla shareholders poorer and Tesla stock more risky than it already was before the proposed merger. His interest and shareholders interests are clearly at odds. Musk is probably saying, "A fool and his money are soon parted." Although he usually probably says this about taxpayers who fund all his ventures through investments, tax credits, etc. he means Tesla shareholders this time. Good luck doing anything about it. It's a wonder he doesn't make Tesla buy his home for 2x the price while he's at it.

Needless to say, other solar stocks aren't in play, especially at the valuation he wants to do this deal at.