Business

Tesla, SolarCity shares rise as merger looms

Posted October 10, 2016 7:00 am

The Associated Press

DETROIT (AP) - Shares of Tesla Motors Inc. and SolarCity Corp. rose Monday after the head of both companies said they won't have to raise money this year.

Elon Musk tweeted over the weekend that the money-losing companies won't need to raise equity or corporate debt in the fourth quarter despite a proposed merger and other potentially costly moves.

Musk said Tesla will introduce a new product on Oct. 17. Its lower-cost Model 3 is also due out next year.

Musk - who is the chairman of SolarCity and the CEO of Tesla - proposed in June that Tesla acquire SolarCity. Shareholders must still vote on the merger, which has been delayed by multiple lawsuits.

Tesla shares rose 2.2 percent to close Monday at $200.95. SolarCity gained 4.9 percent to $19.59.

Article Comments

Article Categories
Business Content Providers Nation and World News

Article Comments

Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the "flag" link in the lower-right corner of the comment box. To find our more, read our FAQ.