Under the terms of the deal, Tesla would acquire all outstanding shares of SolarCity's common stock in exchange for common shares of Tesla. After completing due diligence, Tesla would pay between $26.50 and $28.50 per share making the deal worth up to $2.8 billion. This represents a 21-30% premium over yesterday's closing price of SolarCity stock.
Tesla says it wants to acquire SolarCity as it would enable the automaker to become the "world’s only vertically integrated energy company offering end-to-end clean energy products to our customers." The company went on to say "With your Model S, Model X, or Model 3, your solar panel system, and your Powerwall all in place, you would be able to deploy and consume energy in the most efficient and sustainable way possible, lowering your costs and minimizing your dependence on fossil fuels and the grid."
For those unfamiliar with SolarCity, it's a leader in solar energy and covers the residential, commercial, and industrial markets. Tesla also noted the company has made it easy for customers to switch to clean energy and the two have already been partners on a variety of projects which use Tesla battery packs.