---
title: "The Wall Street Journal: Tesla Motors Reaches $2.6 Billion Deal to Merge with SolarCity"
url: https://burnaze.com/article/1fb019b6-d1c0-4e93-b60b-0c705381d04e
source: "1851 Franchise"
original_url: https://1851franchise.com/the-wall-street-journal-tesla-motors-reaches-26-billion-deal-to-merge-with-solarcity-5362
category: "Finance"
topics: ["Finance & M&A"]
published: 2016-08-01T14:09:05.000Z
modified: 2026-11-01T04:15:07.021Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/0eca52f6e2d74ce83472d360ee82f0bc5066160801092131.jpg
---

# The Wall Street Journal: Tesla Motors Reaches $2.6 Billion Deal to Merge with SolarCity

**TL;DR:** Tesla Motors Inc. reached a $2.6 billion deal to merge with SolarCity Corp. in an all-stock transaction. The deal values SolarCity at about $2.6 billion and would double Tesla's workforce to nearly 30,000 employees.

*originally published in 1851 Franchise on 2016-08-01. [Read the original](https://1851franchise.com/the-wall-street-journal-tesla-motors-reaches-26-billion-deal-to-merge-with-solarcity-5362).*

## Story

Tesla Motors Inc. on Monday said it had reached a deal to buy SolarCity Corp., the next step in Elon Musk’s plan to combine his electric-car and solar-energy companies.

The all-stock deal values SolarCity at about $2.6 billion, with SolarCity stockholders receiving 0.11 share of Tesla for each share of SolarCity, valuing them at $25.83 apiece, according to Friday’s closing prices.

The deal’s value comes in lower than the original range of $26.50 to $28.50 per share Tesla had proposed in June. Mr. Musk said Monday he wasn’t involved in talks about the valuation of the purchase.

“I know about as much as you do about how the price was obtained,” he said to an analyst on a conference call. Mr. Musk and other key members of the boards of both companies recused themselves from the analysis of the deal.

The deal, if it is approved by shareholders, would double Tesla’s workforce to nearly 30,000 employees and create a unique combination of solar, storage and transportation. The new company would tie up two-money losing entities, dependent on borrowing from the market together, adding potential for risk along with its opportunity to vertically integrate its products.

“It’s really all part of solving the sustainable energy problem,” Mr. Musk said. “That’s why we are all doing this to accelerate the advent of a sustainable energy world.”

## Entities

- 1851 Franchise (publication)
- General (sector)
- merger (topic)
- Elon Musk (person)
- vertical integration (topic)
- sustainable energy (topic)
- all-stock transaction (topic)
- Tesla Motors acquisition of SolarCity (deal)

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Originally reported by 1851 Franchise (https://1851franchise.com/the-wall-street-journal-tesla-motors-reaches-26-billion-deal-to-merge-with-solarcity-5362). Summarized by Burnaze (https://burnaze.com/article/1fb019b6-d1c0-4e93-b60b-0c705381d04e).