Automotive and energy storage firm Tesla Motors has offered to acquire SolarCity for about $2.86bn.
Tesla Motors CEO Elon Musk is the major shareholder in both the companies with 19% in Tesla and 22% in SolarCity.
The company is planning to accelerate the world's transition to sustainable transportation by offering increasingly affordable electric vehicles.
If completed, a combination of Tesla and SolarCity would be the world's only vertically integrated energy company offering clean energy products, starting with the car that consumers drive and the energy that they use to charge it.
SolarCity's network of sales and distribution channels and expertise in providing financing products would significantly benefit Tesla and its customers.
Several analysts says that SolarCity operates in highly competitive market and with a complex business model.
Some analysts even argue that this move is a way to bailout Solarcity and is a deviation for Tesla from its production plan to bring out the low cost electric car, Model 3.
According to analysts, this move from Musk could face lot of opposition from Tesla's shareholders.
Citing Musk, the Wall Street Journal reported that the acquisition intends to create a company with about 30,000 employees. All products will be renamed Tesla which will package electric cars, batteries and solar panels.
