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John123 in Gainers & Losers,

Tesla, SolarCity close to merger agreement

Tesla Motors Inc (TSLA) and SolarCity Corp (SCTY) have made progress in putting together a deal that will merge the electric car maker and the solar panel installer, people familiar with the matter said.

The two companies, which count billionaire Elon Musk as a major shareholder, are in the final stages of carrying out due diligence on each other, and could agree on the terms of a deal in coming days, though it is still possible that their negotiations end unsuccessfully.

It could not be learned whether SolarCity would be successful in including a go-shop provision in a merger agreement with Tesla that would allow it to continue to solicit bids from other potential buyers for a short period of time.

Representatives for SolarCity and Tesla did not immediately respond to Reuters requests for comment.

From economics point of view the merger does not make any sense excepting only if, Tesla will start making minivans which will be used for delivery and installation of SolarCity panels. :) But for Musk the merger has some sense. He will have only one failed business instead of two. :)