Holy sh**! I wasn't expecting that! How does it make sense? I see the combined solar and storage idea, but I'd much rather have Tesla Energy spin off and merge with SolarCity than add all the SolarCity risks to Tesla proper. We need to make Model 3, no distractions necessary.
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FredTMC
Model S VIN #4925
Geez Elon. Couldn't this wait till after Q2 delivery numbers?!
Well this way we could get a pretty huge correction!
The biggest head scratcher on many levels -
1. Why take on more risk - financial & operational than already there.
2. Elon owns 22% of SolarCity, what does it mean
3. Where is Tesla going to get the capital to fund this - more dilution!? dipping into the recent $1.5 fund raise? I don't want that.
1. Why take on more risk - financial & operational than already there.
2. Elon owns 22% of SolarCity, what does it mean
3. Where is Tesla going to get the capital to fund this - more dilution!? dipping into the recent $1.5 fund raise? I don't want that.
My TSLA share is tanking and my SCTY is surging. Life is complicated. 
MartinAustin
Active Member
Isn't this what some government whiny-boys were saying was a possibility? Tesla did a public offering, got a bunch of cash, and are now buying Solar City. I think the regulator-types were worried that the money would be diverted to Solar City. Well this sorta takes care of that
Just correcting myself... looks like it's an "all stock" deal so Tesla is not using cash raised during the recent secondary offering.
And the whiny-boys were talking about SpaceX using the profit from their defense and NASA launches, not anything to do with Tesla.
I believe TSLA is tanking primarily due to #1 that you've listed above. It really doesn't make sense to buy something that is trouble. But I believe Elon wouldn't do so if there wasn't any real future for it. I think it has to do with long term goal.
For #2, it'll probably cut some losses if Elon holds some stock in SCTY if bought higher.
As for #3, I think it may have been part of the plan to dip into the $1.5B fund raiser.
I can see how it's easy for TSLA to be down 10%, but would it hit 15% to then buy...
So how does this math work? Tesla needs to come up with 21 to 30 % premium (~700M) and that needs to be paid in cash, the rest is just renaming of SCTY shares to TSLA shares?
SCTY will likely correct (it's already gone from 20% to 17%), whereas TSLA may have a ways to go yet. But the correction should be huge, we're so far under vwapMy TSLA share is tanking and my SCTY is surging. Life is complicated.
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