Tesla wins U.S. antitrust approval to buy SolarCity

Musk’s cousins, Lyndon Rive and Peter Rive, who are also SolarCity’s co-founders and top executives, have also agreed to purchase $17.5 million in bonds apiece. Once again, we are witnessing momentum by the bulls in pre-market, as shares are again trading at $226 (4:30 AM EDT).

The Federal Trade Commission has cleared Tesla’s proposed SolarCity buyout. While SolarCity’s CEO, Lyndon Rive, and SolarCity chief technology officer Peter Rive are each buying $17.5 million of bonds.

“Musk is infusing even more of his money”, Nathan Serota, an analyst at Bloomberg New Energy Finance, said Tuesday. He went on, “SolarCity is burning through a lot of cash and they need cash”. Those lines are secured with Mr. Musk’s shares in SolarCity and Tesla.

Tesla shares closed down 0.7 percent at $220.96 and SolarCity shares ended 0.6 percent lower at $22.36 on Thursday. The solar company approved the deal this month.

SolarCity’s business relies on debt as it offers homeowners the chance to install solar power systems with some or no money down, and the company collects monthly payments instead. These bonds carry a rate of 6.5%, and will retire in February 2018. The bonds are issued directly, online, and there are no fees for investors either. One of the biggest buyers of the bonds is another Musk entity – Space Exploration Technologies Corp.

In brief, the difference is that a “debtholder’s view is that they want to be repaid”, Elson said.

The solar panel maker has been under huge pressure to reduce its expenses in order to generate profits after years of losing money. Mounting solar panels on your home aids fight the dreaded greenhouse gas emissions and decreases human’s reliance on fossil fuel.