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SCTY Acquisition Vote
- Thread starter TSLA_Hopeful
- Start date
I really am torn here. I'm currently planning to vote no, but if they can present a way to wind down SolarCity's "bank run" risks, then I'd vote yes.
I voted NO. Mostly because every interaction I have had with SCTY has been negative, from poorly trained individuals to poor work, failure to perform, poor interaction with customers, etc. Every interaction with TSLA has been positive. I believe that acquisition of SCTY will be a drag on TSLA for some time. TSLA should focus their efforts on what they do. Let SCTY survive or fail on it's own without the bailout from TSLA. The combined company is not better financially IMO, than the two companies individually.
Like this: Tesla Motors Announces Offerings of Common Stock and Convertible Senior Notes (NASDAQ:TSLA)
Or this:
Tesla Improves Financing Product With Best Resale Value Guarantee and Lower Monthly Payments (NASDAQ:TSLA)
They're already tied up in complex financial products and the management team is super sharp with raises, hedging, etc.
TheTalkingMule
Distributed Energy Enthusiast
Without the tax equity component this might be a concern, but there's a pretty sweet buffer there. The only real risk is in repayment reliability and there's been zero concern there to date. AFAIK repayment is still well over 99% and the average customer is still in that 740 credit score region.
Some people will look into the abyss of SCTY's proprietary financing operation and convince themselves something nefarious lies just below the surface, I just don't see that as likely. There's way too much buffer with the tax equity plus the premium customers are paying relative to a straight install. Unless SCTY is purposely structuring these deals in a more risky fashion than necessary, there is more than enough fat for everyone to get a slice and come back for more.
I do think SCTY is running into a scenario where it's increasingly tough to finance due to install costs not coming down as total debt expands. Pretty sure the SCTY finance folks in 2014 didn't plan on having $.91/W sales cost in the spring of 2016. Fortunately they can fall back on tax equity and sales expense SHOULD drop back toward $.50 almost immediately since the Nevada debacle has passed.
As I mentioned, this purchase offer seems to be an effort to set a price floor, squeeze the shorts, and buy enough time for SCTY to get past the elections.
Gerardf
Active Member
Posted this in the short-term thread. Maybe this was a better place.. 
My 2 cents.. (
As a shareholder for both TSLA (larger portion) and SCTY (smaller portion).
Although I am a bit surprised by the timing, we simply have to trust the Tesla board on this. Maybe in 12 months we all feel it was a bit risky timing and on finances, but buying later would maybe by then have been much more expensive (e.g. being CF-positive and with the Giga-panel-factory humming). Now the offer is out, it is better for all shareholders to get this over with as quick and smooth as possible.
The sooner this uncertainty is out of the way, the better.
Note that the Tesla board is more than Elon, and also that the real deciding vote on this will be from the big institutional shareholders. I am very much convinced this offer would not have gone out without that being cleared in advance, so it is a done deal anyway.
Next to that, this deal breaking up now would be much worse for both SCTY and TSLA shareholders than the current situation.
In case I felt my vote would be relevant, I would thus vote YES (and did so in the poll).
My 2 cents.. (
As a shareholder for both TSLA (larger portion) and SCTY (smaller portion).
Although I am a bit surprised by the timing, we simply have to trust the Tesla board on this. Maybe in 12 months we all feel it was a bit risky timing and on finances, but buying later would maybe by then have been much more expensive (e.g. being CF-positive and with the Giga-panel-factory humming). Now the offer is out, it is better for all shareholders to get this over with as quick and smooth as possible.
The sooner this uncertainty is out of the way, the better.
Note that the Tesla board is more than Elon, and also that the real deciding vote on this will be from the big institutional shareholders. I am very much convinced this offer would not have gone out without that being cleared in advance, so it is a done deal anyway.
Next to that, this deal breaking up now would be much worse for both SCTY and TSLA shareholders than the current situation.
In case I felt my vote would be relevant, I would thus vote YES (and did so in the poll).
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