update 4-tesla offers $2.8 bln for solarcity in 'no brainer' deal for musk - home battery system

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Add details of scheduled Tesla call)
Nicola Groom and Paul Linett are in Los Angeles/Detroit on June 21 (Reuters)-
On Tuesday, Elon Musk tried to build a clean-energy powerhouse as his electric vehicle maker, Tesla Motors, and offered to buy shares in his solar installation company SolarCity Corp, worth up to $2. 8 billion.
Tesla shares plunged 13% to $189.
99 in extended transactions
A loss of about $4.
3 billion, or more than the value of the offer offered for another company.
Shares in SolarCity rose about 18% to $25. 02.
Musk, the chairman of SolarCity, Tesla's CEO and the biggest shareholder of the two companies, said in a conference call with reporters that the deal was "without thinking ".
He said the company could sell electric cars, household batteries and solar systems to customers at the same time.
"You can combine this one o'clock to a visit instead of going to the house three times to install car chargers, solar panels and battery packs," Musk told reporters . ".
"This is an obvious thing.
However, Tesla investors punished the company's shares.
"Ideally, you want to see Tesla focus on Tesla --
Set up Teslas and expand the car, "said Ivan Feinseth, an analyst at Tigress Financial Partners.
"Maybe the feeling is that it's causing people to lose their attention, and that could put economic pressure on Tesla because it's going to need a lot of cash constantly.
SolarCity is about $6.
Liabilities, including debt, were 24 billion per cent.
Tesla executives say the company's foreseeable cash flow is paying its debt by paying for the solar system.
Although it is American. S.
The market leader in residential roof solar systems, which regularly publishes quarterly losses, has seen inventory drop by nearly 60% so far this year, and investors believe its business model is too complicated in an increasingly competitive market, this has hit investors hard.
Tesla doesn't know how many customers have solar panels, Musk said, but they speculate that most customers may be interested in solar energy.
Tesla said in a blog post that the deal was a way to expand the market for both companies.
Solar systems will be sold under Tesla's high-end brand, which is looking to expand its target market with a $35,000 electric vehicle that will begin delivery by the end of next year.
Musk, who owns 19% of Tesla and 22% of SolarCity, said he would withdraw from the vote on the deal.
Since due diligence needs to be done first, he cannot say how long shareholders can vote on the transaction.
SolarCity CEO Lin den Ryf, the first cousin of Musk, said he supported the deal but would give up voting as well.
His brother Peter is also the founder and chief technology officer of the company.
Musk and Linden Ryf made the idea for SolarCity on a trip to the fireman desert festival in 2004.
More than ten years later, SolarCity has become the largest solar city in the United States. S.
Residential solar energy is not installedmoney-
The down-funding plan allows homeowners to pay solar panels by paying less than their monthly fee for local utilities.
Tesla said the company offered $26. 50 to $28.
SolarCity's $50 per share is about 25% to 35% above the company's $21 premium at Tuesday's close. 19.
The deal is worth about $2. Between $6 billion and $2.
Overall 8 billion
Tesla said in a statement released late Tuesday that its management would hold a conference call to discuss the "reasonableness" of the acquisition of SolarCity ".
The conference call is scheduled for Wednesday morning in the United States. S. markets open.