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?
Conference call at 7:30am. Webcast:
Tesla Motors Conference Call | Tesla Motors
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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?
I'm definitely two thumbs up for the merger. If selling solar and Powerwalls at Tesla stores looks like it might be a solid end run around the various state dealership lobbies. That's been draining Tesla bandwidth and limiting sales activities in many states.
I don't know how I'd value that, but with Model 3 coming, having brick and mortar stores everywhere (even if limited to just solar and Powerwall and -cough cough go to our website for a car cough-) gets the foot in the door. It creates local jobs, Tesla becomes part of the community, and it becomes a huge annoyance to the local community when they can't also buy a car there.
I worked late today and got home to be greeted by 20 new pages in the ST thread. What a bombshell.
I like TSLA and have owned it with a few short breaks since March 2013. I have great situational awareness wrt Tesla's financials and products. I've owned SCTY just once where I made a quick buck on a volatility play.
SCTY does address the right problem, which is that the irrationally short time preferences of consumers are hindering the adoption of solar.
But I'm against this move for a couple reasons.
1. Tesla Owners love Tesla, Solar City owners often hate Solar City; this is a huge negative, that ill-will will not disappear.
2. As has been noted by many already, Solar City's financials are opaque, I don't understand them so I haven't held SCTY long term. In my brain SCTY financials are somewhere beyond the "here be dragons" area.
I do like the idea of Tesla owning the "solar gigafactory" and the further vertical integration that would bring. I also like the idea of integrated TE-PV products.
My big question is: What percentage overlap is there between the institutional investors in these two companies? These guys will determine if the vote passes.
I suspect anyone who has significant positions in both companies will vote for the aquisition because Tesla brings greatly increased credit stability to SCTY.
If a solid plan to de-mystify SCTY finances emerges I may change my mind...
Edit: And seriously the timing sucks.
Earlier today I would have said I would follow Musk anywhere. For 6 years this was my mantra. After this I would never make that statement again. Even if it were in tesla interest to sell solar panels why solar city? What due diligence did they do to look at other potential companies? The best advantage seems to be that Musk and his family owns a lot of scty shares. He will benefit by Tsla paying a premium for those shares. What he didn't bank on was the drop in Tsla share price. So he has lost money in the process. So instead of not only demonstrating an inability to perform his fiduciary and forego his selfish self interest, he has also demonstrated a level of foolishness I would not have expected. I would urge all to vote against it. Even if you still care about Musk, do it to prevent the multiple law suits that will come out of this
More FUD.
This great merger will separate the true believers from those not fully in line with Elon's quest and those only hanging in there for a quick buck in the past.
Go Elon!
The synergies between the two companies will be enormous. After all, investors paid between $60-90 for SCTY shares not long ago. Deal is a bargain!
I'd want to know exactly how Elon and the Tesla team intend to accomplish a turnaround at SolarCity. The blog post had no details on how Tesla intends to accomplish this.
If I'm having serious questions about it, you can bet that the big institutional shareholders are going to demand answers too: Tesla Motors, Inc. (TSLA) Ownership Summary
Institutions hold a whopping 93.3 Million (approximately) shares of TSLA, representing 63.33% of the company. Fidelity alone holds over 16M shares.
We get a gf update in early July?!
At the beginning of July, we get two critical pieces of data... the Q2 delivery numbers and the Q2status report on the progress of the Gigafactory. Also, there is a Gigafactory grand opening event at the end July, and then the Q2 ER in August.
Curt,That's the way it should work for short positions not covered before any merger finalizes.
I'd like to think this is a good deal for TSLA shareholders, but at this point, I can only say it's a good deal for Tesla's mission. I wont complain about that... the mission is why Elon has led Tesla to accomplish remarkable things, without it, I'd never have had the financial opportunity of TSLA.
Just a thought: how low would SCTY have to go before Elon made a bid to take the whole thingamojang private? Below $10? That would be $1 billion, give or take a few millions. I was kind of disappointed he didn't buy the other day around $16.
...thus creating a short squeeze in SCTY which in turn might put pressure financially on these people, who are also the ones shorting TSLA?
From the Tesla blog:
- We would be able to expand our addressable market further than either company could do separately. Because of the shared ideals of the companies and our customers, those who are interested in buying Tesla vehicles or Powerwalls are naturally interested in going solar, and the reverse is true as well. When brought together by the high foot traffic that is drawn to Tesla’s stores, everyone should benefit.
The reason why this deal is probably better done in 2 years is this.
In 2 years, TSLA shares will probably double. While I fully expect SCTY shares to increase by less than double since it is limited to USA only. Buying then with pure share offer will be cheaper.
I think that largely depends on whether the institutional shareholders are on board and not the sentiment on this board.Given the seemingly overwhelming opposition to this deal by the stock holders, isn't it more than likely (almost certain?) that this deal won't go through?
I hear a lot about bad timing here, can you elaborate on that? I see that would make sense for folks who just wanted TSLA to be at a particular price point but that's bad timing for their agenda, not Telsa's.
Given the seemingly overwhelming opposition to this deal by the stock holders, isn't it more than likely (almost certain?) that this deal won't go through?