NEW YORK (TheStreet) -- Shares of SolarCity (SCTY) were gaining 6.1% to $19.82 in mid-afternoon trading on Monday after Elon Musk said in a tweet yesterday that it would not be necessary for SolarCity or Tesla Motors (TSLA) to raise equity or corporate debt in the fourth quarter for their proposed merger.
Musk is the CEO of Tesla and chairman of SolarCity.
The electric car maker agreed to buy renewable energy company SolarCity for $2.6 billion earlier this year.
Musk added that raising equity or corporate debt also would "probably not" be necessary in the 2017 fiscal first quarter. He noted that his comments were meant to "correct expectations" about the companies' need to raise capital.
On Friday, Tesla said it planned to generate additional cash by year end to fund the SolarCity deal, according to an SEC filing.
Additionally, Musk said in a tweet that the companies would unveil a new joint product on October 28.
Shares of Tesla were also advancing in mid-afternoon trading on Monday.
Separately, TheStreet Ratings objectively rated SolarCity stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "sell" with a ratings score of D.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: SCTY