USAtoday: Tesla Motors said Monday that it had reached a deal to acquire SolarCity, putting the companies one step closer to a marriage that has drawn scrutiny from Wall Street but which Tesla CEO and SolarCity Chairman Elon Musk has vigorously defended.
Tesla (TSLA) said the stock acquisition is worth $2.6 billion, including the assumption of debt, valuing SolarCity shares at $25.37, or 5% lower than Friday’s close.
SolarCity (SCTY) will get 45 days to seek an alternative suitor in a provision known as a “go-shop” period.
Musk argued that the deal would accelerate Tesla’s transition from electric-vehicle automaker into a renewable-energy products company. With solar-panel installer SolarCity on board, Tesla could pair solar panels with its new energy storage products.
“This is really all part of solving the sustainable energy problem,” Musk said on a conference call. MORE
I’d rather own a good horse over a Tesla vehicle.
Musky was one of the founders of Solar City. Sounds like he’s cashing in.
Twice the subsidies for half the productivity. Sounds like a better way to flleece We The People.
“This is really all part of solving the Make My Bank Accounts Even Bigger problem”
Thieving motherfuckers.
I still like the idea of putting solar panels on windmill blades so that they can generate electricity when the wind isn’t blowing. Now, if we could only solve that whole “night” thing….
You understand that the Tesla stockholders will now take on the debt of SolarCity, which, by the way, is owned and run by Musk’s cousins.
This guy is an unstable Assburger nut. He could walk away from Tesla in a heartbeat if SpaceX gets a government takeover. That would leave thousands of Tesla owners with $100,000+ lawn ornaments. Tsk, tsk.
🙂
Isn’t Solar City being sued in several states because of false marketing? Specifically, as I recall, you never reach the point promised of being free of electric bills or installation bills because the array’s performance never matches promises, performance of arrays all decline steadily over time to the point they need to be completely replaced before fully paid for.
Plus, the SEC is looking into why Musk never disclosed the death of a Tesla driver on Autopilot in Florida before issuing new shares of stock in May. Material information that could impact the company’s viability going forward MUST be fully disclosed ahead of a public stock offering.
However, the Feds have heavily subsidized Musk in his Tesla Unicorn & Rainbow venture, so I doubt they want him to be Solyndra-On-Wheels.