Investors have richly rewarded SolarCity Corp (NASDAQ:SCTY) today, applauding the company’s decision to acquire Silevo Inc., which makes photovoltaic solar panels. SolarCity also said it is planning to build one of the world’s biggest solar power systems in New York. SolarCity said in a regulatory filing today that it will pay $200 million in stock and have $150 million more SolarCity shares available if certain milestones are met.

SolarCity SCTY

SolarCity follows in Tesla’s footsteps

SolarCity Corp (NASDAQ:SCTY) seems to be taking a tactic that’s similar to Tesla Motors Inc (NASDAQ:TSLA). The automaker is planning a massive gigafactory to make itself more vertically integrated. However, SolarCity’s tactic is through an acquisition rather than building the facility entirely itself. The company is essentially using Silevo’s resources to build one of the most efficient photovoltaic solar panel factories in the world. According to the Contra Costa Times, Silevo had already been in negotiations to build a facility in New York.

The last 12 months have been a roller coaster ride for SolarCity Corp (NASDAQ:SCTY). The company’s stock climbed pretty steadily between September 2013 and March 2014, with a couple of dips. Then it started to trend downward through May before today’s abrupt turnaround. With today’s share price increase, SolarCity’s market capitalization is now about $6.03 billion.

Tesla rallies too

Overall it was a big day for Tesla Motors Inc (NASDAQ:TSLA) CEO and SolarCity Corp (NASDAQ:SCTY) Chairman Elon Musk. Not only did SolarCity have a big announcement that sent its stock through the roof, but there were numerous positive reports about Tesla as well. The automaker is moving closer toward being able to sell its cars directly to consumers in both New Jersey and New York. Also Morgan Stanley analysts issued yet another ultra-bullish report on Tesla, and there are reports that the automaker is in talks with rivals Nissan and BMW to collaborate on Supercharger stations.

Shares of Tesla Motors Inc (NASDAQ:TSLA) also jumped today, climbing by as much as 4% at one point. Elon Musk holds a significant stake in both SolarCity Corp (NASDAQ:SCTY) and Tesla, so his pockets got quite a bit deeper today after both stocks rallied. Tesla soared by nearly 9% on Monday as well.

For more on the acquisition, see the blog post by Elon Musk on SolarCity