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Is Elon Musk Buying SolarCity?

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SolarCity stock skyrocketed as much as 20% on Thursday. Rumors surrounding Tesla Motors (TSLA - Free Report) CEO Elon Musk’s intentions to buy the company and take it private sent investors into a frenzy.

Musk is already SolarCity’s chairman and largest shareholder. According to a filing last month, he recently added an additional 569,680 shares, worth about $10 million, to his holdings. Musk’s cousin Lyndon Rive is the current SolarCity CEO.

The issue with today’s rumors, however, are that they seem to be completely unfounded. Musk, who runs a very active Twitter account, has been silent on the issue, and it’s hard to trace exactly where this story came from.

Going private might benefit the struggling SolarCity. Without shareholders to worry about, SolarCity could take new measures to solve its debt management and cash flow issues. Of course, the key word there is “might.”

Regardless, today was a profitable day for Musk, who also runs the private space exploration company SpaceX, as his net worth gained upwards of $75 million from his stake in SolarCity.

Unfounded rumors like this swirl around all the time, and it could just be an unknown investor’s attempt at getting this stock off the ground. Stay tuned for more on this story, as only time will tell whether the rumors are true or just bogus.

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