Fitbit says it will buy a $1.6 billion stake in Tesla in a deal that will add to the automaker’s wealth.

The deal is expected to close this week, with the stock soaring more than 50% in after hours trading.

The news follows reports that Fitbit, which is valued at more than $100 billion, has a bid to buy Tesla, a deal Tesla confirmed Thursday.

Fitbit has not yet made an offer to buy the carmaker, according to The Wall Street Journal.

Fitbits shares rose more than 9% to $9.77 in premarket trading.

It is not yet clear if Fitbit is planning to buy or acquire Tesla.

The company, which has more than 1,200 stores and more than 60,000 employees worldwide, operates a $7.4 billion in sales-tax rebate program that allows it to collect a tax on purchases at retail stores and online.

Fitbits tax rebate has led to an estimated $500 million in tax revenue in recent years.