teslamotorclub: Tesla makes offer to acquire Solar City part 1

Breaking: Tesla Makes an Offer to Acquire SolarCity

Hmmmm. Me is thinking about how good (or bad) the timing of this is....thoughts?
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Wow, kinda didn't see this coming. Hope wall Street likes it!
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Discoducky said: ?

Wow, kinda didn't see this coming. Hope wall Street likes it!
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Well TSLA is way down in after market, while SCTY is way up...hmm
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Solar City is bleeding cash, but you can see the long-term goal of Tesla Energy taking form.

But, I suspect, in the short term, this'll be viewed negatively by Wall Street...

Wonder if they're secretively very confident about how the Gigafactory is shaping up.
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I'm long on both, but IMO, it's a questionable move. SCTY's story was still pretty speculative with no clear defendable long term edge over the competition. Their financial metrics are complex (and a moving target) and adding this to the mix won't make it any easier to analyze $TSLA's books.
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Discoducky said: ?

Well TSLA is way down in after market, while SCTY is way up...hmm
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I didn't see it coming either. I'm holding some SCTY, nothing massive, so umm, hmmm. Will be interesting to watch play out.
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Buy low�Once the panel factory starts production the company will appear much more solid. Won�t play well for TM in the near term.
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Well, Elon is a fan of vertical integration, so... I see synergy going both ways: SCTY becoming a sizable channel for Tesla Energy and Tesla Energy being able to sell vertically integrated bundles. Agree that is will complicate assessing Tesla Energy's performance.
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Gwgan said: ?

Buy low�Once the panel factory starts production the company will appear much more solid. Won�t play well for TM in the near term.
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When is factory expected to start producing? Does that factory still make financial sense, BTW?
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TM makes and sells great products. SC will make and sell great products when it has its factory. TM is focused on advancing manufacturing now. SC�s panel factory is a great opportunity to advance manufacturing. Maybe the delays were because somebody wanted to improve on the plant design mid-stream. SC is messy because installation is all about the local details and valuation of future electricity generation is complicated. Perhaps once SC is part of TM the focus will only be on making and selling great products, leaving the installation and complex financing to other entities (spin-offs?). TM will control the three of the planet�s largest factories in their fields making what the world needs a lot of right now. Buying what SC is right now, yuk. Buying what it could become, awesome.
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Wow... The market hates this deal... Market cap for tsla has gone down more after hours than the entire market cap for scty
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Market hates it perhaps because the last big solar acquisition was of Solarcity's next biggest competitor, Vivint. The acquirer (SunEdison) is now bankrupt. That was a completely different deal and I don't think any lessons can be applied from that deal to this. But still, for SUNE investors this may be "too soon".
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This could hurt for awhile. Good buying opportunities ahead at least.
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Delayed - data as of 06/21/2016 18:55 ET

$195.50 24.11 10.98%

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I thought the idea behind having SolarCity and Tesla separate was Elon couldn't do everything.
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S'toon said: ?

...Elon couldn't do everything...
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Since Elon hardly got any sleep and his sleeping bag's at the car assembly line, he might as well lead Solar City to make it great
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TSLA stock is tanking big time over this announcement. Wow.
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AmpedRealtor said: ?

TSLA stock is tanking big time over this announcement. Wow.
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Unless you have faith in Elon, TSLA might feel this is a distraction. How much multitasking can one single person do?

On the other hand, SCTY climbs higher as it welcomes a proven leader Elon. How can you go wrong with Elon?
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It seems a given that this will squeeze SCTY shorts in a most impressive manner. Watching the after hours price action on TSLA, though, I am curious as to how that impending squeeze might factor into TSLA tomorrow. Why: Because it seems reasonable to assume that at least some of the short players in SCTY will also be short players in TSLA. To the extent they are also short TSLA, they may have to unwind those positions if they face margin pressure.

To me TSLA seems oversold on the news, with a reversal likely. It would seem that what I detail above would add fuel.

Is it unreasonable to expect a significant bounce in the coming days?
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ttupper92618 said: ?

...Is it unreasonable to expect a significant bounce in the coming days?
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I don't think it is unreasonable but I have never correctly predicted a stock movement at any given moment in future.
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Remember to set your calendar to Jun 22, 2016 7:30 AM ET for the call:

Tesla Motors Conference Call | Tesla Motors
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Tam said: ?

Remember to set your calendar to Jun 22, 2016 7:30 AM ET for the call:
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I'm guessing Elon is in N.Y.? Or, he gets up at 4:30AM PST and really doesn't sleep.
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Alketi said: ?

I'm guessing Elon is in N.Y.? Or, he gets up at 4:30AM PST and really doesn't sleep.
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It's a phone conference so he does not have to travel to NY. He can talk from California at 4:30 AM PDT. He might as well since his sleeping bag's at the assembly line.
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Some have pointed out the different cultures of sales between Tesla and Solar City.

With Tesla, sales people are quite well behaved and not pushy and owners are quite pleased with the buying experience.

With Solar City, sales people are quite aggressive who wouldn't take a no for an answer. Some prospective customers complain about numerous sales calls and rate the experience as just the same as traditional car dealership or worse.

So, is it still true that Tesla Sales people don't get a commission?

I assume that Solar City sales people do get a commission in order to justify their tenacity?

Could this be a perfect marriage? You hardly gets any phone call from car department but you might get lots of knocks on the door or constant phone call from the same Tesla company but this time, from Solar department?
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Tam said: ?

Some have pointed out the different cultures of sales between Tesla and Solar City.

With Tesla, sales people are quite well behaved and not pushy and owners are quite pleased with the buying experience.

With Solar City, sales people are quite aggressive who wouldn't take a no for an answer. Some prospective customers complain about numerous sales calls and rate the experience as just the same as traditional car dealership or worse.

So, is it still true that Tesla Sales people don't get a commission?

I assume that Solar City sales people do get a commission in order to justify their tenacity?

Could this be a perfect marriage? You hardly gets any phone call from car department but you might get lots of knocks on the door or constant phone call from the same Tesla company but this time, from Solar department?
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Meh...personally that's the least of my concern, if a concern at all. My biggest is will this interfere with the model 3 ramp up? As things stood, this ramp up needs to be almost flawless to pull off the goals Elon has laid out. With so many moving parts to plan, organize and execute the ramp, I'm not too sure the timing is right.

Saying that, I'm all for the deal and think it's a good move for the long term. Brilliant move in some aspects when you think about the Tesla stores and how this move can solidify Tesla being able to open more stores and keep existing stores...especially in the states they're fighting with the dealerships. Can't make an argument to close down or deny a tesla store if they're selling storage and solar....which can eventually lead cars later.
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Gilzo said: ?

...will this interfere with the model 3 ramp up...
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Workload wise, I don't think it interferes with Model ? ramp up. Solar City already has a CEO and the company has been able to run by itself.

It's just like Warren Buffet buying See's Candy that already cranked out sweets all by itself before his arrival.

However, financially, both Tesla and Solar City are not turning a profit yet.

That is fine just like Amazon that did not turn profits for years and still didn't die.

The trick to stay alive when you don't produce a profit is cash.

You need cash to pay your workers and other expenses.

As long as you got a cash infusion, you are fine.

As soon as you are cash-strapped, you might find yourself in the same situation as SunEdison that just went bankrupt 2 months ago.
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Switching gears away from the financial discussions....maybe this deal will accelerate the installation of solar at SuperChargers. I think that's an important thing that will make a statement.

Also, maybe the SolarCity cars driving around will be Model 3's? I'm always disappointed when I see a fossil-burning SolarCity vehicle. It sends the wrong message.
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Tam said: ?

Remember to set your calendar to Jun 22, 2016 7:30 AM ET for the call:
Tesla Motors Conference Call | Tesla Motors
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I cannot listen in live... will there be 'live transcript'?
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Well, is this a complete surprise? No.
In fact, I thought it would happen sooner.
Is it a smart move financially-Not right now.
Will it be a smart move in the end-YES!

Now, what if they put hyperloop into the mix and go public and merge it with Tesla?! I'll bet they raise 10b or more for hyperloop-much safer than flying and faster.
Add that to the approximate profits of model 3-4b.
Absorbing solar city will not be painful in the end, but right now it is a strain financially.

As a past shareholder who sold it all just about a month ago.
Will I buy it back? I might but not the 30k plus shrs I had before.
I might put 5k shrs order in but in a little while. I want the dust to settle on this first.

Investing aside-I'm curious to know what others think about this merger or should I say potential merger but 95% certainty that it will happen.
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Operator came on announcing "stand by."
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WarpedOne said: ?

I cannot listen in live... will there be 'live transcript'?
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It will be summarized by SamO at:

Tesla Motors / SolarCity Conference Call June 22, 2016 | Tesla Motors
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Operator: Welcome.
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Jeff Everson: introduction.
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Todd: it's an offer, not agreement. Elon 5% stock holder.
More transparent process. Up front. Business rationale for deal
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Elon: 3 parts in last year presentation
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Energy, Transportation, and solar.

Vertical integration.

Doubling sale at that time (Model 3 sales and Solar)

Obvious thing to do
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He may be a genius, but he's so hard to listen to!
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Elon: execution is cleaner. No brainer.
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JenniferQ said: ?

He may be a genius, but he's so hard to listen to!
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Did he sleep yet?
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Elon: Increase debt postion?

Cashflow generated positive next 3 to 6 months.

Net cash generator.
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Elon: Can't talk about plans. Very optimistic about those plans.

High efficiency, low cost. Looks better.

Get together very well with PowerWall Power Pack side.
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Barkely: 2 directors not voting. How independent the rest of directors?...
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Todd: Recuse from voting. Just focus on business side.

Barkely: Cash?
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?Jason: Can't talk right now about combined cash of 2 companies. Due diligence.
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Elon: Solar City has no impact on cash.

Barkely: How both sales of Model 3, Solar?
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Elon: We need an integrated product. One piece.

Easier, not harder.

Why company exists at all? Compelling product.
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Charlie Anderson: Shareholder has Synergy numbers to vote. Costs...?
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At this time I believe this acquisition will make it much more difficult for Tesla to deliver the Model 3 on time and on budget. This acquisition will just accelerate Tesla's cash burn!
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Elon: costs drop on both sides.
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Charlie Anderson: why now?
Elon: ramping up Powerwall/packs, Silevo acquisition...
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?some body: Change ratio you offer?
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Elon: quite reasonable.

extremely normal.

A trillion dollar company.
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?some body: near term shareholder to vote? Chicken and egg? Not enough time to digest.
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Elon: Exchange ratio is reasonable. Reasonable Premium. Reasonable Market Cap. Definitely up to you guys shareholders.

We'll standby with shareholders vote but have zero doubt about this.
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No. A true collaboration between Tesla and Solar City means there'll be little to no chance the Powerwall will integrate with solar solutions except those made by Solar Ciry.

And I'm sold on Sunpower as the solar manufacturer, not Solar City.
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Elon: Is there any way to do this? As fair as possible? Legally correct, morally correct?

Q: When get financial information?
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Elon: I agree. This is beginning of the process, not the end.

Q: Solevo--cost advantage? Cost projectory?
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Elon: Best manufacturing. Not by small margin that people thought. Higher efficiency. Same roof with third more power. Aesthetic speaking, look much better. Significantly better: Night and day difference.

Q: fundamental technology to bring the cost down? But Solar City is construction and finance...
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I'm thinking bigger picture.

Elon suggested that there would be benefit to the Tesla store fronts in consolidating the Power Wall, Solar and vehicles.

Reading a little deeper between the lines, I think they will use this streamlined approach to circumvent some of the issues they are having getting stores into states where the dealers association.

It could to be a shrewd strategic move long run.
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Elon: Efficient logistics.

I don't see any reason why Silevo panels will cost less. Super competitive.
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Todd: Elon & Antonio recuse from voting.

diligence 2-3 weeks.

Merger Agreement

Shareholders Vote next few months.

Q: How much a play: net-metering...
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I'm thinking bigger picture.

Elon suggested that there would be benefit to the Tesla store fronts in consolidating the Power Wall, Solar and vehicles.

Reading a little deeper between the lines, I think they will use this streamlined approach to circumvent some of the issues they are having getting stores into states where the dealers association.

It could to be a shrewd strategic move long run.
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Fix the post title and pass the popcorn.
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Elon: Cost drops significantly every year.

Solar, Storage, Electric Car

Q: ?

Elon: Transparency as much as we can.

No question about convergence of Tesla and Solar City. It's the timing. Should do this sooner.
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Q: Working together may be cumbersome?

Elon: We don't have special deal because of conflicts of interest.

Q: Rank
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Elon: Best integration without pointing finger blame a solar company or battery or car company.

Cost saving to sell twice as much on the same store.

A lot better. From 2, 3 to 1

Q: Discussed with large shareholders?
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Elon: want to talk to everyone at the same time.
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Q: Possible financial sense in the short term for storage?
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Elon: Storage makes sense in Hawaii where energy cost is very high, pockets of Europe and eventually for everyone.

Q: In the US, in 5 years?
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greenemg said: ?

I'm thinking bigger picture.

Elon suggested that there would be benefit to the Tesla store fronts in consolidating the Power Wall, Solar and vehicles.

Reading a little deeper between the lines, I think they will use this streamlined approach to circumvent some of the issues they are having getting stores into states where the dealers association.

It could to be a shrewd strategic move long run.
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That's one way to double locations! I just hope a Tesla Energy complete package is competitive with utilities and it doesn't cost an arm and a leg to own outright.
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Elon: Definitely.
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Elon: Cell efficiency 3x.

Q: Lots of analysts concern about Solar City cash flow. what you see differently?
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Elon: cost efficiency.

...

Q: Why not pursue less capital intensive. "Special deal" is a norm.
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Elon: Legally, morally, can't do that.

Q: Solar City near term path
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Elon: bridge loan if needed. Don't think it needs it.

Q: Car dealership?
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Elon: Still can't sell cars directly in some states.
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Q: Bail out of Solar City? Gigafactory timeline?
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Elon: Not a bail out. Great capital, equity evaluation without any problem.
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Q: Tax Credits, alternatives, caps for ratios:
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Elon: Beginning, not the end.

Considered other companies but we consider Solar City the best.
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Q: Microgids/grids
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Elon: A tailor situation, push a button and it works. Easy to implement.

---The End--

Elon: look out to the future, macro trend.

---Real The End--
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If you consider that the Tesla car is part of Musk's goal of no fossil fuels, the Solar City merger makes sense and building on the Tesla brand. Musk was always about replacing fossil fuels with electricity generated by solar power. The car and home are the two best first targets for moving to a solar electric industrial base.

That the Tesla battery is integral to the car (Tesla Motors) and the home (Solar City), the merger makes sense.

For people who want to go solar for both car and home, Tesla/SS offers a $10,000 down get EV car and solar panels for the home with the savings on home utility costs and gasoline costs paying the bill.
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SolarCity is a natural extension of Tesla's Energy business. SolarCity is making 30% gross margins and sales have increased every year.

This is a smart move financially especially if you can secure govt contracts supplying both solar panels and municipal sized powerpack installations.
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It's absolutely insane. Tesla doesn't have the cash, the focus or the trust of the investors to make this work: I'm predicting it will be shot down by the boards
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Woosie said: ?

No. A true collaboration between Tesla and Solar City means there'll be little to no chance the Powerwall will integrate with solar solutions except those made by Solar Ciry.

And I'm sold on Sunpower as the solar manufacturer, not Solar City.
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That wouldn't be a wise business move. You would want your batteries to be sold to/installed for as many commercial and residential properties as possible. You incentivize the consumer to buy both your storage battery and your solar panels by offering a bundled discount. That would be my approach.

What separates Sunpower from Solar City for you?
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tsla007 said: ?

Well, is this a complete surprise? No.
In fact, I thought it would happen sooner.
Is it a smart move financially-Not right now.
Will it be a smart move in the end-YES!

Now, what if they put hyperloop into the mix and go public and merge it with Tesla?! I'll bet they raise 10b or more for hyperloop-much safer than flying and faster.
Add that to the approximate profits of model 3-4b.
Absorbing solar city will not be painful in the end, but right now it is a strain financially.

As a past shareholder who sold it all just about a month ago.
Will I buy it back? I might but not the 30k plus shrs I had before.
I might put 5k shrs order in but in a little while. I want the dust to settle on this first.

Investing aside-I'm curious to know what others think about this merger or should I say potential merger but 95% certainty that it will happen.
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Wrong section of the forums, AND its already being discussed.

Here's the original thread in the proper section: Tesla makes offer to aquire and solar city
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Anybody know of ETFs that hold a good amount of TSLA? With them dropping due to this deal it would be a good time for a newbie investor such as myself to get in.

Buffalo NY solar plant comes online around the same time Model 3 comes out, maybe we'll see package deals? Get your energy source, battery backup and personal transport wrapped together for a discounted monthly payment. I'm in!
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greenemg said: ?

I'm thinking bigger picture.

Elon suggested that there would be benefit to the Tesla store fronts in consolidating the Power Wall, Solar and vehicles.

Reading a little deeper between the lines, I think they will use this streamlined approach to circumvent some of the issues they are having getting stores into states where the dealers association.

It could to be a shrewd strategic move long run.
Click to expand...

No, this is not going to help Tesla sell cars. Consolidation is needed to help Solar City lower its sales overhead, which it needs to do _dramatically_. SolarCity's high spend worked to help it grow with large subsidies, but with the net metering subsidies disappearing it has to change its approach. Tesla already has stores and it can use those existing stores and systems to lower SolarCity's sales overheads.

I'll expect SolarCity to do a lot of fat cutting over the next year, and I wouldn't be surprised to see Lyndon Rive cut during that time as well. I'd be disappointed if Elon Musk isn't ruthless enough to fire him, because SolarCity should have been ready for the shift.

I support Tesla's move, but grudgingly because SolarCity's mismanagement has made this necessary. Solar's extremely important for both Tesla Motors' and Tesla Energy's business.

Tesla's aims for Energy imply that the standard installation would be an off-grid capable grid-tied system with battery back-up. (The dumb grid-tied systems that have been installed do not make sense long-term in the USA).
Tesla's aims for Motors mean that it needs to have low-cost residential solar available, because it needs to keep downward pressure on the US utilities' pricing.)
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This is not a good sign for me as both a rooftop solar owner and a Tesla owner. When I looked for a car, Tesla was the best and had amazing service. When I looked for solar panels on my roof, SolarCity was the worst. Their pushy sales tactics to sell me as many panels as would possibly fit (without regard to my needs or return on investment), low-efficiency/low-quality panels, and heavy reliance on contractors who don't care about the company brand, led me to choose someone else.

Sometimes, this isn't just about synergies or capital infusions. This is a sad deal to me because it's like merging Nordstrom with Wal-Mart.

- K
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Khatsalano said: ?

heavy reliance on contractors who don't care about the company brand
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Talking about the same Solar City? Solar City does all of their installs in house. No contractors.
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TrilsOn, did you get Solar City to install your panels? I would actually love to hear one of their customer experience stories.

- K
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Khatsalano said: ?

This is not a good sign for me as both a rooftop solar owner and a Tesla owner. When I looked for a car, Tesla was the best and had amazing service. When I looked for solar panels on my roof, SolarCity was the worst. Their pushy sales tactics to sell me as many panels as would possibly fit (without regard to my needs or return on investment), low-efficiency/low-quality panels, and heavy reliance on contractors who don't care about the company brand, led me to choose someone else.

Sometimes, this isn't just about synergies or capital infusions. This is a sad deal to me because it's like merging Nordstrom with Wal-Mart.

- K
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I had the complete opposite experience. The panel count was tailored perfectly down to the tier boundary from PGE, which turned out to be spot on. No contractors, they upgraded our main panel for free (which would have cost us $2000+) and were nothing but professional and courteous. We asked for a lot from them and they bent over backward to accommodate us. The only quibble we had was the inverter fan was a bit noisy on hot days and they installed it too close to our office window.

We'll be calling them again for our new place, and having them tightly coupled with Tesla is a net positive to me.
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Merging at the moment it's a bad move, Tesla is trying to ramp up production and finalizing the 3, yet on the long run it would be beneficial.

I agree with greenemg, Tesla could be trying to use solar power as a means to sell their cars in certain states and to further expand their SC network.

I reluctantly say yes.
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FirstSea said: ?

Merging at the moment it's a bad move, Tesla is trying to ramp up production and finalizing the 3, yet on the long run it would be beneficial.

I agree with greenemg, Tesla could be trying to use solar power as a means to sell their cars in certain states and to further expand their SC network.

I reluctantly say yes.
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Keep in mind this will add half a billion dollars annually to Tesla's revenue numbers with an increasing trend the last few years.
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ItsNotAboutTheMoney said: ?

No, this is not going to help Tesla sell cars.
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But it might help Tesla sell batteries.

ItsNotAboutTheMoney said: ?

high spend worked to help it grow with large subsidies, but with the net metering subsidies disappearing it has to change its approach.
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Depends on the state. In CA where utilities have to be 50% sustainable power, the cheapest way for power companies to do this is to provide net metering (allowing a person to install solar panels and bank the excess power with the power company) and an incentive based on the capital costs for the utility to build solar, geothermal or wind power plants and power storage.

Extension of the 30% Federal Tax credit helps also as on the lease, Tesla Energy (Solar City) gets back 30% of the install price.

As with the extension of the 30% Federal Tax credit, the election is important to boost the tax credits and incentives at Federal level since that is where the $1T in oil subsidies, oil trade deficits, oil military costs are seen. We can eliminate $1T in unproductive costs to US economy by subsidizing solar power and companies like Tesla Solar.

1. Federal direct incentives for non-polluting power installations, solar, wind.
2. Net metering requirements by state to refund electric costs and to allow banking of power.

Tesla Solar (Solar City) business model was built on state net metering, state and Federal incentives to build out sustainable power.

Key is those incentives are in US national interest

ItsNotAboutTheMoney said: ?

Tesla aims for Energy imply that the standard installation would be an off-grid capable grid-tied system with battery back-up. (The dumb grid-tied systems that have been installed do not make sense long-term in the USA).
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Not off grid but allow utility to build out solar and wind power and store power at the user site via the Tesla battery systems. Grid tie systems make perfect sense. Use and store free energy locally while having grid for all other times. The utility system can be smaller, the energy system overall is more efficient as lower transmission losses and it's clean energy.

ItsNotAboutTheMoney said: ?

aims for Motors mean that it needs to have low-cost residential solar available, because it needs to keep downward pressure on the US utilities' pricing.)
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Higher utility energy prices the better locally owned solar or wind with storage looks.
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Hard to see this as much more than a rationalized bailout.
Robin
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N5329K said: ?

Hard to see this as much more than a rationalized bailout.
Robin
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Bailout for which company?
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EaglesPDX said: ?

Tesla Solar (Solar City) business model was built on state net metering, state and Federal incentives to build out sustainable power.

Key is those incentives are in US national interest
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I will argue that utility scale solar gives twice the value to taxpayers and fairly distributes the benefit to all.
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Solar City share prices are certainly a bargain right now, which no doubt presents an opportunity. I think the market has been too harsh on them in regard to fears of net metering and tax incentives going away. As panel prices continue to fall precipitously, demand will exist even as the subsidies phase out.

It certainly makes sense in terms of the "Musk Industries" vision. Tesla storefronts can become experts in helping electric vehicle customers size and scope home energy systems that maximize value in specific geographic areas, taking into consideration utility rate plans, available incentives, etc.

"Well Mr. Jones, now that you've built your Model 3, we've run an analysis based on your roof exposure, utility, current energy consumption, and stated driving habits. To maximize savings we recommend a X KW solar system with a Y KW Powerwall and selecting the "EV-Z" plan from your utility. Here's a printout showing your energy costs and savings over the course of a year. Will that be cash or credit?"
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FWIW, about 2 years ago I had SolarCity do a 16kw/64 panel install on a single family home with a very odd roof layout (poor south facing roof). They bent over backwards to design a system mostly installed on east-west facing roof areas (so actually a few more panels to provide power depending on time-of-day and the angle of the sun), and optimized layout to minimize the impact on 'curb appeal' (basically nothing is visible from the street). The system was sized to account for my electricity use/bill from PG&E (including 2 Model S). Their mantra is that they want to generate about 70% of your electrical needs, but cover no more than 90% of your PG&E bill (since there are issues of the tier you are in and the fixed costs that PG&E imposes, plus the net metering rate that PG&E buys back power at). They used Canadian Solar panels--all black, black face and sides, low profile hidden mounts, with black skirts along the sides--really looks great on my dark composition roof. The installation crew was incredibly professional and very safety oriented. Great care to optimize esthetics. I have 4 SolarEdge inverters installed on the wall of my garage, and the layout and all of the disconnects and j-boxes look very high tech and clean (nothing to hide--complements my high tech S85). All good. Oh, and BTW, I am one of those 'fools' who went with the PPA. I was willing to give SolarCity some $$ to eliminate all hassles and headaches. They have to guarantee my output and monitor the system. Poor output--it's their nickel to buy power from PG&E. They can fix/repair/replace panels & inverters if needed. And, no, I am totally unconcerned about the 'lien' encumbering my house. Anyone smart enough to buy my house won't blink when they see my PG&E bill before and after PV solar. If they are resistant to the idea, I will just buy the system from SolarCity at an agreed upon depreciation schedule and then bundle the price into the home price. YMMV.
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ucmndd said: ?

Solar City share prices are certainly a bargain right now, which no doubt presents an opportunity. I think the market has been too harsh on them in regard to fears of net metering and tax incentives going away. As panel prices continue to fall precipitously, demand will exist even as the subsidies phase out.
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No! The SCTY board approved the price.They know far more than you and me what the future holds for Solarcity.
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This merger can only mean one thing...

The crazy "Solarcity stole my bicycles" dude is going to come back to the Tesla shareholders' meeting.
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JeffK said: ?

Bailout for which company?
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Solar City has been struggling, and has been on a kind of unofficial death watch for some time. Unlike the unofficial death watches called on Tesla Motors, this one seemed to be grounded in numerical reality. Nobody likes to fail, or see a key part of a personal vision crumble. And I can imagine Mr Musk sees something here that I do not...some synergy, some one-stop shopping opportunity that pans out. I just hope he isn't convincing himself to ride to Solar City's rescue out of pride.
Robin
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N5329K said: ?

Solar City has been struggling, and has been on a kind of unofficial death watch for some time. Unlike the unofficial death watches called on Tesla Motors, this one seemed to be grounded in numerical reality. Nobody likes to fail, or see a key part of a personal vision crumble. And I can imagine Mr Musk sees something here that I do not...some synergy, some one-stop shopping opportunity that pans out. I just hope he isn't convincing himself to ride to Solar City's rescue out of pride.
Robin
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Struggling as far as stocks go... as far as revenue goes they are doing just fine.
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electracity said: ?

No! The SCTY board approved the price.They know far more than you and me what the future holds for Solarcity.
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I'm not quite sure what you're responding to, as it has nothing to do with what I said.
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ucmndd said: ?

I'm not quite sure what you're responding to, as it has nothing to do with what I said.
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The current share price is obviously not an "incredible value". If it was, the SCTY board would not sell the company at the price offered by Tesla.
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electracity said: ?

I will argue that utility scale solar gives twice the value to taxpayers and fairly distributes the benefit to all.
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I'd argue both are fine and necessary. Both get the job done in increasing sustainable non-polluting power. There are many solutions to the problem of fossil fuel use, conservation, tech research, local install, utility install, mandated percentages by specific dates. All should be applied with a goal of 2050 US eliminates oil imports, coal fired plants and has reduced greenhouse gas emissions by 80% from 2000 levels.
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N5329K said: ?

Solar City has been struggling, and has been on a kind of unofficial death watch for some time. Unlike the unofficial death watches called on Tesla Motors, this one seemed to be grounded in numerical reality. Nobody likes to fail, or see a key part of a personal vision crumble. And I can imagine Mr Musk sees something here that I do not...some synergy, some one-stop shopping opportunity that pans out. I just hope he isn't convincing himself to ride to Solar City's rescue out of pride.
Robin
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I suspect Solar City will contract or expand based on original business model requiring government to mandate sustainable power and subsidize the install. If the politics changes in this election and US gets back on path to sustainable power and lowering greenhouse gas emissions, Solar City original model will likely continue.

Independent of that I think Tesla Energy (Solar City) will likely be the distribution/installation arm for the battery for home and industry. Depending on the regulatory environment, provide solar installs for homes and small business also. Likely sales of Tesla car battery and alliances with other car mfg.s would also fall under Tesla Energy, third party.
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electracity said: ?

The current share price is obviously not an "incredible value". If it was, the SCTY board would not sell the company at the price offered by Tesla.
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I didn't say "incredible value". Quotes generally imply you're quoting someone.

I said they're a bargain. The market decides the price... the SCTY board can think whatever they want about the validity of that price.

I think it's plausible that the market has been unduly harsh on SCTY's share price this year based on fears around the fundamentals of the residential solar business. That depressed share price presents an opportunity for Tesla to complete a relatively affordable deal (and for SCTY shareholders to realize a sizable return).
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Interesting upbeat story here:

Robin
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@JPP We sold our house with a PPA, the transfer was unbelievably easy. I think we signed one additional paper, and it definitely increased the value of our home.
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My response is damn dude, please focus on trying to get something done before you develop grandiose delusions. The Model 3 will make or break Tesla and a screw up will likely ruin them.
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HanSolo said: ?

My response is damn dude, please focus on trying to get something done before you develop grandiose delusions. The Model 3 will make or break Tesla and a screw up will likely ruin them.
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He is delusional. He even jokingly intimated that at one of these interview/conferece/talk things recently. But that "madness" fuels his success and ambition. I would never try to rein that in.

JeffK said: ?

This merger can only mean one thing...

The crazy "Solarcity stole my bicycles" dude is going to come back to the Tesla shareholders' meeting.
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I need the deets on this.

N5329K said: ?

Hard to see this as much more than a rationalized bailout.
Robin
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Is it a bailout even if it helps spur profitability in the Tesla Energy and Solar divisions? (We obviously won't know that for some time, but I'm just curious.)

N5329K said: ?

Interesting upbeat story here:

Robin
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Tl;dw.

I prefer this one.

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alseTrick said: ?

I need the deets on this.
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Check out the Q/A session at the end of the Q1 Tesla shareholder's meeting.
2016 Shareholder Meeting | Tesla Motors
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If you listen to the media conference call today, Elon said he supports the proposal based on his usual "first principles" analysis, and then proceeds to make his case. Worth listening to.
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This is just one guy but at different times I was considering solar panels (in NJ) or a Tesla 3. I'm now considering a package if they offer it. I was definite on the 3 but I don't know how long I'll be in my home. If they figure out how to make solar easy and cost effective, I'm all in.
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Hells said: ?

It's absolutely insane. Tesla doesn't have the cash, the focus or the trust of the investors to make this work: I'm predicting it will be shot down by the boards
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Elon stated both company's boards had unanimously approved the proposal.
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I hardly could understand what every one was saying in the conference call.

So to apologize for my sloppy transcript, here's one from the professionals:

http://seekingalpha.com/article/3983785-tesla-motors-tsla-tesla-offer-acquire-solarcity-conference-call-transcript?part=single
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I'm ok with solar city, would've had a problem with Resteration Hardware..
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teslamotorclub

Thứ Bảy, 14 tháng 1, 2017

Tesla makes offer to acquire Solar City part 1

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