SolarCity (NASDAQ:SCTY) is getting bigger, and better.
The company announced on Tuesday that it will acquire Silevo, a manufacturer of solar panels, for $200 million and a potential $150 million more based on hitting certain milestones. The market applauded the news, bidding the stock up more than 17% on Tuesday.
This is a big step for SolarCity, as it will now be able to manufacture its own panels rather than purchasing from them others. Rule Breakers analyst Simon Erickson and Stock Advisor analyst Sara Hov discuss the impact this move could have for both the company and its investors.
Simon Erickson owns shares of SolarCity. Simon Erickson has the following options: short October 2014 $55 puts on SolarCity and short January 2015 $50 puts on SolarCity. The Motley Fool recommends SolarCity. The Motley Fool owns shares of SolarCity. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.