According to an article published on Reuters just a few hours ago, Tesla Motors Inc could announce that it has agreed a merger deal with SolarCity today (01/08/2016.) When Tesla CEO, Elon Musk, suggested the merger more than 1 month ago, investors and Tesla shareholders were worried, and many sold their shares in the firm. This caused the electric vehicles manufacturer’s share price to fall by more than 5%. Meanwhile, SolarCity’s stock gained by a small margin as news of the potential merger broke.

Musk is the Chairman of SolarCity, and the biggest shareholder in both companies. Many analysts feel that this has, and will inevitably continue to cause a conflict of interests. Tesla Motors Inc has previously stated that it will offer 0.122 – 0.131 of its shares for each share.

Musk wants to combine both corporations together to form a larger, stronger business, that is leading the way in terms of clean tech development and innovation.

An article posted on Electrek gave more info on the deal, and how it could affect the companies (in terms of stock price.) It reads “The original offer announced by Tesla last month was a ~$2.8 billion deal to acquire SolarCity in an all-stock transaction that would see SCTY shares convert to TSLA shares at a ratio of 0.122 to 0.131. It’s not clear if the offer has changed, but a ‘go-shop’ provision could potentially increase the price. We will likely know more on Monday.”

Tesla has had an action-packed year so far, with the unveiling of its new, affordable EV, called the Model 3 (on the 31/03/2016) and a few autopilot crashes placing their technology under scrutiny. Their new Gigafactory, which is based in Reno, Nevada opened on the 31/07/2016.

The stock markets have been closed for the weekend, and Tesla Motors Inc’s stock is currently worth $234.79 per share, giving the firm a market capitalization of $34.57 billion.