Tesla reaches US$2.6 bil deal to buy SolarCity

NEW YORK (Aug 2): Electric car maker Tesla said on Monday it won agreement from SolarCity to acquire the solar power company for US$2.6 billion ($3.5 billion), confirming a deal that has been criticised on Wall Street.

Tesla announced the bid in late June, but it drew jeers on Wall Street, in part because of skepticism over the motives of Tesla chief executive Elon Musk, who is also chairman of SolarCity as well as its biggest shareholder.

Some analysts also questioned whether the deal would divert Tesla's attention from an ambitious plan to significantly expand electric-car production in the next few years.

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