Tesla shares fell 8% in after-hours trading on Tuesday, after the electric-car maker announced that it made an offer to buy SolarCity.
In a letter to SolarCity CEO Lyndon Rive, Tesla’s board has made an offer to acquire all outstanding shares of the company’s stock at $26.50 to $28.50 per share which represents a 21% to 30% premium.
Elon Musk, Tesla co-founder, is the largest shareholder of SolarCity, the biggest installer of rooftop solar systems.
Meanwhile, SolarCity shares jumped 22%. Shortly after Tesla’s offer, SolarCity said it will carefully evaluate the proposal.
More to come …
Business Insider Emails & Alerts
Site highlights each day to your inbox.