22 June 2016 at 3:15 GMT
Tesla Motors said on Tuesday it would bid $2.8 billion to buy SolarCity, sending the solar energy company's shares soaring. SolarCity shares popped more than 15% after-hours on the offer of $26.50 per share to $28.50 per share, while Tesla shares dropped as much as 10%, trading below $200 per share for the first time since March. SolarCity's controlling shareholder, Elon Musk, is also the CEO of electric car company Tesla. The two sets of shareholders will vote on the merger independent of Musk after a due diligence process, the Tesla CEO said. While Tesla has considered the deal "blindingly obvious" for a while, the timing seemed right as the companies released products that were increasingly aligned, Musk said in a conference call. "It improves the efficiency of the setup," Musk said, focusing on lowering costs."Instead of having, say, three different trips to a house to put in a car charger and solar power and a battery pack, you can actually integrate that into a single business."
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