Shares of SolarCity (SCTY) jumped more than 10% in Tuesday morning trading after SCTY announced that it had purchased solar equipment maker Silevo and was in talks to build a new factory in New York state.
In a post on its corporate blog, SCTY said that the Silveo acquisition would generate “massive economies of scale to achieve a breakthrough in the cost of solar power.” SCTY is not planning any other immediate purchases, but could “acquire additional photovoltaics companies as needed” to meet internal growth plans. Terms of the Silveo purchase were not disclosed.
According to SCTY, the company is discussing plans to build a manufacturing facility in New York state with a “targeted capacity greater than 1 GW within the next two years.” SCTY noted that the facility “will be one of the single largest solar panel production plants in the world,” and that SCTY will build more factories in coming years.
SolarCity Chairman Elon Musk is also CEO of electric car-maker Tesla Motors (TSLA).
On Monday, SCTY stock closed at $54.88 per share.
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