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Elon Musk's Tesla Plans To Acquire Elon Musk's SolarCity For $2.7B In Stock (techcrunch.com)
An anonymous reader writes from a report via TechCrunch: Today, Elon Musk's electric car and battery company Tesla has announced its offer to buy solar panel installation company SolarCity. Now is a better time than ever to acquire SolarCity, as it recently had its value downgraded. If Tesla does acquire SolarCity, the companies could allow you to outfit your home with solar panels that power a giant battery for your various appliances, such as an electric vehicle. The deal, which has yet to be approved by SolarCity and its board, involves SolarCity's stock being exchanged for Tesla stock. TechCrunch reports that "the deal would pay a premium of 21% to 30% on top of SolarCity's value of $2.14 billion, so Tesla would be buying SolarCity for between $2.59 billion and $2.78 billion worth of its stock." The Tesla team writes, "It's now time to complete the picture. Tesla customers can drive clean cars and they can use our battery packs to help consume energy more efficiently, but they still need access to the most sustainable energy source that's available: the sun." Elon Musk has also been in the news today through OpenAI, the artificial-intelligence non-profit backed by Elon Musk, Amazon Web Services and others. OpenAI announced it is working on creating a physical robot that performs household chores.
Elon Musk: So do we have a deal?
[Elon gets up from his seat at one end of a massive conference table where he is flanked by lawyers, and walks around to the other end, where he sits down, flanked by other lawyers.]
Elon Musk: We have an agreement.
[Elon Musk gets up, crosses to the middle of the room, and shakes his own hand to the cheers of his fellows.]
Musk Industries.
One of our competitors trademarked the term "hypothesis". From now on, we will call them "boneheaded ideas".
It's common for a successful company to buy out investors in an unsuccessful company as a way to move value out of the sham higher value company directly into the lower value company, because, of course, they'd rhe same investors. It's a way to get a pay off early without selling off your tesla stock. Same thing happened with the YouTube buyout by Google. The VC firm that funded both companies wanted a payoff even though at the time the deal made no sense.
When something is sold between separate companies controlled by one person, it might be for sound reasons of strategy or synergy.
ROFL.
Confucius say, "Find worm in apple - bad. Find half a worm - worse."
From the tone of the article, I think Elon Musk might be involved behind the scenes, pulling the strings.
Only time with tell.
Mod me down, my New Earth Global Warmingist friends!
Made manifest. Progress.
You are being ripped off every second of every day, so that advertisers can help rip you off even more tomorrow.
They would now own Tesla stock.
In the far-right and the wrong direction.
This is how you cash in. Use stockholder money to buy your own company. IF Telsa stock is expected to drop, then the sooner you do it the better, and you don't have to worry about insider trading rules.
And both companies have never been profitable.
SolarCity is an interesting enterprise. Its existence is wholly dependent on federal and state subsidies, more than $400 million in federal tax credits so far. Since the company is the one that owns the solar equipment, it gets the subsidy rather than their residential and business customers with 20 year leases. They don't even have their own installers, they contract for that service and they have a significant number of cases with incorrect installations. It is a great scam.
This is how you cash in. Use stockholder money to buy your own company.
This is a stock transaction. No money is changing hands.
Profit is only one part of the equation. Both companies have been channeling their resources into expansion and their net worth is now measured in billions of dollars. Teslas Gigafactory alone is expected to be worth $5 Billion. As far as subsidies, try to find a major company that doesn't receive significant tax breaks from the government. Boeing alone has received $13 Billion over the last decade or so.
Value is. Investors of Tesla are diluted and investors of solar city will make money. Musk well most likely end up owning more of the combined company than he did before the deal.
I still have more fans than freaks. WTF is wrong with you people?
Nuclear isn't sustainable, solar is for the duration of life on Earth. Just like oil we have a finite amount of nuclear fuel, we should save it in case we end up with no other way to go to other solar systems than to putt along on generational ships.
Nuclear isn't sustainable, solar is for the duration of life on Earth. Just like oil we have a finite amount of nuclear fuel, we should save it in case we end up with no other way to go to other solar systems than to putt along on generational ships.
that's stupid. Nuclear is sustainable for centuries, far longer than anyone would care to analyze.
Solar does not meet the power demand cycle and without any reasonable scale energy storage is untenable, takes up too much space for the power it generates, is expensive to maintain (the frames need constant corrosion resistance maintenance), and thus ultimately underserves it's promise.
Doesn't that scream "inefficient"?
PS
Oh, Li-Ion charge efficiency is close to 100%, never mind... ^^
http://liionbms.com/pdf/Elithi...
Yes, the surf only goes 'til the land. Until global warming raises the sea level, of course.
I'm not sure I understand the process.
Isn't it just moving one cell in some Excel sheet?
From the tone of the article, I think Elon Musk might be involved behind the scenes, pulling the strings.
Only time with tell.
Seems that investors are quite concerned with this deal. Musk is the kind of person that plans is moves very far in advance. It's just not obvious why he is doing this.
One of our competitors trademarked the term "hypothesis". From now on, we will call them "boneheaded ideas".
How do you figure this leads to that?