Elon Musk is selling his solar power company to his electric car company.
Musk will sell SolarCity to Tesla Motors for $2.6 billion, and the companies are expected to save $150 million in the first year of the merger.
Musk has described the acquisition as a natural fit and a "no-brainer".
In the statement which announced the merger, the companies said: “Now is the right time to bring our two companies together: Tesla is getting ready to scale our Powerwall and Powerpack stationary storage products and SolarCity is getting ready to offer next-generation differentiated solar solutions.
"By joining forces, we can operate more efficiently and fully integrate our products, while providing customers with an aesthetically beautiful and simple one-stop solar and storage experience: one installation, one service contract, one phone app.”
Shareholders in both companies had previously questioned the necessity of such a merger, but it is going ahead regardless. Musk will pay himself a large amount of Tesla shares in exchange for SolarCity shares.
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