Tesla and SolarCity confirm merger in $2.6 billion stock deal - Roadshow

While Tesla is best known for its Model S, Model X and Model 3 high-performance electric cars, the company also produces a series of residential and industrial power storage devices called PowerWall, currently assembled at its new Gigafactory facility. SolarCity provides photovoltaic solar systems for both homes and businesses. The merger of the two companies, both founded by Musk, will allow an "esthetically beautiful and simple one-stop solar-plus-storage experience."

When Musk originally announced the intention of a merger in June, the reaction was largely negative. Tesla stock dropped by more than 10 percent in the following days. As of Friday, however, Tesla's shares were up by approximately 7 percent since the original announcement of the deal. SolarCity shareholders will receive 0.110 Tesla shares per share, representing a $25.37 valuation per-share of SolarCity.

This isn't a done deal, as shareholders will need to approve the details -- and there's the minor detail of regulatory approval as well. The intention is to finalize the deal sometime in the fourth quarter of the year.