Tesla shares are getting crushed after announcing an offer to buy SolarCity

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 …

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