TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker or making a Paypal contribution here: paypal.me/SupportTMC

Tesla makes offer to acquire Solar City

Discussion in 'Tesla Motors' started by Gilzo, Jun 21, 2016.

?

do you support tesla solar city merger?

Poll closed Jun 24, 2016.
  1. yes

    61 vote(s)
    68.5%
  2. no

    28 vote(s)
    31.5%
  1. Gilzo

    Gilzo Member

    Joined:
    Apr 2, 2016
    Messages:
    125
    Location:
    Texas
  2. Discoducky

    Discoducky Active Member

    Joined:
    Dec 25, 2011
    Messages:
    2,884
    Location:
    Seattle
    Wow, kinda didn't see this coming. Hope wall Street likes it!
     
  3. Discoducky

    Discoducky Active Member

    Joined:
    Dec 25, 2011
    Messages:
    2,884
    Location:
    Seattle
    Well TSLA is way down in after market, while SCTY is way up...hmm
     
  4. Alketi

    Alketi Member

    Joined:
    May 3, 2016
    Messages:
    329
    Location:
    Boston, North Shore
    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.
     
    • Like x 1
  5. rypalmer

    rypalmer Member

    Joined:
    Aug 22, 2014
    Messages:
    282
    Location:
    Canada
    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.
     
  6. bonnie

    bonnie Oil is for sissies.

    Joined:
    Feb 6, 2011
    Messages:
    14,241
    Location:
    Columbia River Gorge
    I didn't see it coming either. I'm holding some SCTY, nothing massive, so umm, hmmm. Will be interesting to watch play out.
     
  7. Gwgan

    Gwgan Almost a wagon

    Joined:
    Aug 11, 2013
    Messages:
    940
    Location:
    Maine
    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.
     
  8. omarsultan

    omarsultan Active Member

    Joined:
    Jun 22, 2013
    Messages:
    1,496
    Location:
    Northern California
    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.
     
  9. Cosmacelf

    Cosmacelf Active Member

    Joined:
    Mar 6, 2013
    Messages:
    3,399
    Location:
    San Diego
    When is factory expected to start producing? Does that factory still make financial sense, BTW?
     
  10. Gwgan

    Gwgan Almost a wagon

    Joined:
    Aug 11, 2013
    Messages:
    940
    Location:
    Maine
    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.
     
    • Like x 1
  11. gaswalla

    gaswalla P4201/85/airsusp/pano/19i

    Joined:
    Sep 23, 2012
    Messages:
    1,205
    Location:
    San Diego
    Wow... The market hates this deal... Market cap for tsla has gone down more after hours than the entire market cap for scty
     
  12. DriverOne

    DriverOne Member

    Joined:
    Aug 20, 2012
    Messages:
    421
    Location:
    Austin, TX
    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".
     
  13. TaoJones

    TaoJones Beyond Driven

    Joined:
    Nov 10, 2014
    Messages:
    1,299
    Location:
    The Americas
    This could hurt for awhile. Good buying opportunities ahead at least.
     
  14. Tam

    Tam Active Member

    Joined:
    Nov 25, 2012
    Messages:
    1,048
    Location:
    Visalia, CA
  15. S'toon

    S'toon Knows where his towel is

    Joined:
    Apr 23, 2015
    Messages:
    1,979
    Location:
    SK
    I thought the idea behind having SolarCity and Tesla separate was Elon couldn't do everything.
     
    • Like x 1
  16. Tam

    Tam Active Member

    Joined:
    Nov 25, 2012
    Messages:
    1,048
    Location:
    Visalia, CA
    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 :)
     
  17. AmpedRealtor

    AmpedRealtor Active Member

    Joined:
    Jun 30, 2013
    Messages:
    4,711
    Location:
    Buckeye, AZ
    TSLA stock is tanking big time over this announcement. Wow.
     
  18. Tam

    Tam Active Member

    Joined:
    Nov 25, 2012
    Messages:
    1,048
    Location:
    Visalia, CA
    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?
     
  19. ttupper92618

    ttupper92618 Member

    Joined:
    Apr 7, 2016
    Messages:
    138
    Location:
    Irvine, CA
    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?
     
  20. Tam

    Tam Active Member

    Joined:
    Nov 25, 2012
    Messages:
    1,048
    Location:
    Visalia, CA
    I don't think it is unreasonable but I have never correctly predicted a stock movement at any given moment in future.
     

Share This Page