No, it isn't. That's historically totally inaccurate. And it would have been extra triply stupid for the Superchargers, which are for *road trips*. What Tesla actually did was to build along Interstate Highway routes which they thought would be heavily used by existing customers.
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sahanim
Member
A lot of people are very suspicious of SolarCity's financial situation. Rive's reassurances are not convincing because the balance sheet is totally unreadable.
Solarcity sells electricity. Flip the switch, light comes on. Solarcity just made money.
tinm
2020 Model S LR+ Owner
Tesla has held analyst conference calls for relatively minor news events in the past. This SCTY merger is a pretty huge event. Where's/when's the conference call?
10% down on announcement of a 10% dilution?
Looks like the market of Tesla traders values SCTY at $0. Well, could be worse, I suppose, it could be valued as negative...
There is another shoe to drop here....or there is Elon, and "there is no spoon" and no one gets a cookie.
Purchasing one capital intensive business at the same time you are ramping capital expenditures in your core business makes no sense - even if you just raised $10 billion and not $1.4 billion. So unless there are deep pockets about to be tapped into - (the same old litany of Google, Volkswagon, Apple....). Then I don't understand this, in 2D, 3D or the multi-universe.
Purchasing one capital intensive business at the same time you are ramping capital expenditures in your core business makes no sense - even if you just raised $10 billion and not $1.4 billion. So unless there are deep pockets about to be tapped into - (the same old litany of Google, Volkswagon, Apple....). Then I don't understand this, in 2D, 3D or the multi-universe.
Just to echo other concerns, great decision long term, utterly stupid one to do right now at this point in Tesla's life.
If TSLA share price stays super depressed I will vote against it.
Hopefully Elon has enough insider information to have some big knowledge up his sleeves here in the next 1.5 years.
If TSLA share price stays super depressed I will vote against it.
Hopefully Elon has enough insider information to have some big knowledge up his sleeves here in the next 1.5 years.
people pay less for Solarcity electricity then they do from their local utility. You don't default on your cheaper utility payments. The interest rates are very competitive when you have such significantly high rate of on time payments in addition to very high fico score home owners making those payments.
Like I said before, utiltiy commission obstacles pose the most immediate threat. However, Solarcity has a FERC chairman in charge of Solarcity policy team and has already had significant studies come out in the past month that shows net metering provides a benefit for all utiltiy rate payers above retail net metering. This is just a matter of time before the regulatory resistance fades. Again, as the regulatory resistance fades Solarcity is a much more valuable company quicker then tesla proper. Just the United States alone, Solarcity addressable market is still less then 2% penetrated, so a massive market share still unserved.
Actually, I was thinking about the various states that don't allow non-utilities to sell electricity....
But the "pros" are now outweighing the "cons" for me...
And this (plus the potential explosion [in a good way] of solar/storage/auto B&Ms in banned states) could also help explain the timing.
More hmmmmmmm.....
But the "pros" are now outweighing the "cons" for me...
And this (plus the potential explosion [in a good way] of solar/storage/auto B&Ms in banned states) could also help explain the timing.
More hmmmmmmm.....
Unless one thought that something was shortly going to happen that would rocket the SP. So do you want to take a hit before a rapid rise or after it? This may really all be short term movements. Not 1.5 years or 2 years, but weeks. People who don't like rollercoasters should dabble in TSLA or SCTY.
As I've said elsewhere, I think the Silevo factory in Buffalo is worth a lot. Basically worth the $900 million which went into it. I think Silevo is worth at least the $200 million which SolarCity paid for it and Zep is worth at least the $154 million which SolarCity paid for it. That's 1.3 billion right there. The nationwide installation business is probably worth *something*, even though it appears to basically break even.
The problem is that SolarCity has this financial mess on top of the business. There's 3.25 billion in debt, and then there are all these PPAs and leases and so on. It's very hard to work out whether that financial mess is worth a positive amount, or whether it's a liability.
Tesla's car loans are almost all from banks, and the banks take the default risk.
If Tesla can unwind SolarCity's financing mess and transition to a comprehensible financing scheme where banks make the loans and take the default risks, I'd be quite happy with the acquistion. But I don't see that that's going to happen.
PALO ALTO, CA--(Marketwired - June 21, 2016) - Tesla management will host a conference call and webcast at 4:30 a.m. PDT (7:30 a.m. EDT) on Wednesday, June 22, 2016, to discuss the rationale surrounding our offer to acquire SolarCity.
What: Tesla Offer to Acquire SolarCity Conference Call & Webcast
When: Wednesday, June 22, 2016
Time: 4:30 a.m. PDT / 7:30 a.m. EDT
Webcast: http://ir.tesla.com (live and replay)
Participant Dial-In: (877) 312-5519
International Dial-In: (760) 666-3771
Conference ID: 39269812
The webcast will be archived on the company's website following the call.
ADD: link on IR webpage
Tesla Motors Conference Call | Tesla Motors
What: Tesla Offer to Acquire SolarCity Conference Call & Webcast
When: Wednesday, June 22, 2016
Time: 4:30 a.m. PDT / 7:30 a.m. EDT
Webcast: http://ir.tesla.com (live and replay)
Participant Dial-In: (877) 312-5519
International Dial-In: (760) 666-3771
Conference ID: 39269812
The webcast will be archived on the company's website following the call.
ADD: link on IR webpage
Tesla Motors Conference Call | Tesla Motors
Nope. It's a merger of equals (stock-for-stock). Short positions in SolarCity convert into short positions in Tesla.
FredTMC
Model S VIN #4925
Wow. They're doing this call well before the market opens. My impression is this is an attempt at damage control (to Tesla's stock price). Between this Hastily assembled call and Elons tweet today, I think he's clearly surprised with the degree of the decline in TSLA in after hours.
I'm glad they're holding this call quickly but I doubt it'll really help reduce the major hit to TSLA. We'll see
I'm really hoping for some rebounding/stabilization tomorrow.
I think I'm mostly caught up, so how is it that through all this analysis and discussion, no one has a theory for how this is going to affect that guy who had his bike stolen by SolarCity? Sure, we all laughed when he asked Elon for his bike back, but it turns out he may have known more than any of us...
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