Tesla adds solar to its portfolio through SolarCity acquisition - Roadshow

Tesla Motors announced its intention to acquire solar panel installer SolarCity today, in what Tesla CEO Elon Musk described as a "no-brainer" deal. If the acquisition goes through, Tesla would add solar panel installation services to its current business lines selling electric cars and battery storage devices.

It might seem like a "no-brainer" to Musk, but his investors must be wonder where the brains are. In after-hours trading on Tuesday, stockholders pushed the stock down more than 13 percent to $190, a loss of $29.61 since the announcement.

Tesla currently sells the Model S and Model X electric cars, and recently announced the Model 3. Last year, Tesla introduced its Powerwall residential battery storage system, at the time noting that it worked best in conjunction with solar panels.

SolarCity is the leading installer of residential solar energy systems in the country, boasting about a third market share, according to GTM Research. In the past, SolarCity has also offered installation services for residential electric vehicle chargers.

Ties between the two companies are extensive. Not only are they neighbors in the San Francisco Bay Area, Elon Musk is also Chairman of the board for SolarCity.