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Tesla makes offer to acquire Solar City
- Thread starter Gilzo
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- Tesla Inc.
If you consider that the Tesla car is part of Musk's goal of no fossil fuels, the Solar City merger makes sense and building on the Tesla brand. Musk was always about replacing fossil fuels with electricity generated by solar power. The car and home are the two best first targets for moving to a solar electric industrial base.
That the Tesla battery is integral to the car (Tesla Motors) and the home (Solar City), the merger makes sense.
For people who want to go solar for both car and home, Tesla/SS offers a $10,000 down get EV car and solar panels for the home with the savings on home utility costs and gasoline costs paying the bill.
That the Tesla battery is integral to the car (Tesla Motors) and the home (Solar City), the merger makes sense.
For people who want to go solar for both car and home, Tesla/SS offers a $10,000 down get EV car and solar panels for the home with the savings on home utility costs and gasoline costs paying the bill.
JeffK
Well-Known Member
SolarCity is a natural extension of Tesla's Energy business. SolarCity is making 30% gross margins and sales have increased every year.
This is a smart move financially especially if you can secure govt contracts supplying both solar panels and municipal sized powerpack installations.
This is a smart move financially especially if you can secure govt contracts supplying both solar panels and municipal sized powerpack installations.
It's absolutely insane. Tesla doesn't have the cash, the focus or the trust of the investors to make this work: I'm predicting it will be shot down by the boards
alseTrick
Active Member
That wouldn't be a wise business move. You would want your batteries to be sold to/installed for as many commercial and residential properties as possible. You incentivize the consumer to buy both your storage battery and your solar panels by offering a bundled discount. That would be my approach.
What separates Sunpower from Solar City for you?
Wrong section of the forums, AND its already being discussed.
Here's the original thread in the proper section: Tesla makes offer to aquire and solar city
skate_a_book
Member
Anybody know of ETFs that hold a good amount of TSLA? With them dropping due to this deal it would be a good time for a newbie investor such as myself to get in.
Buffalo NY solar plant comes online around the same time Model 3 comes out, maybe we'll see package deals? Get your energy source, battery backup and personal transport wrapped together for a discounted monthly payment. I'm in!
Buffalo NY solar plant comes online around the same time Model 3 comes out, maybe we'll see package deals? Get your energy source, battery backup and personal transport wrapped together for a discounted monthly payment. I'm in!
No, this is not going to help Tesla sell cars. Consolidation is needed to help Solar City lower its sales overhead, which it needs to do _dramatically_. SolarCity's high spend worked to help it grow with large subsidies, but with the net metering subsidies disappearing it has to change its approach. Tesla already has stores and it can use those existing stores and systems to lower SolarCity's sales overheads.
I'll expect SolarCity to do a lot of fat cutting over the next year, and I wouldn't be surprised to see Lyndon Rive cut during that time as well. I'd be disappointed if Elon Musk isn't ruthless enough to fire him, because SolarCity should have been ready for the shift.
I support Tesla's move, but grudgingly because SolarCity's mismanagement has made this necessary. Solar's extremely important for both Tesla Motors' and Tesla Energy's business.
Tesla's aims for Energy imply that the standard installation would be an off-grid capable grid-tied system with battery back-up. (The dumb grid-tied systems that have been installed do not make sense long-term in the USA).
Tesla's aims for Motors mean that it needs to have low-cost residential solar available, because it needs to keep downward pressure on the US utilities' pricing.)
Khatsalano
Member
This is not a good sign for me as both a rooftop solar owner and a Tesla owner. When I looked for a car, Tesla was the best and had amazing service. When I looked for solar panels on my roof, SolarCity was the worst. Their pushy sales tactics to sell me as many panels as would possibly fit (without regard to my needs or return on investment), low-efficiency/low-quality panels, and heavy reliance on contractors who don't care about the company brand, led me to choose someone else.
Sometimes, this isn't just about synergies or capital infusions. This is a sad deal to me because it's like merging Nordstrom with Wal-Mart.
- K
Sometimes, this isn't just about synergies or capital infusions. This is a sad deal to me because it's like merging Nordstrom with Wal-Mart.
- K
Khatsalano
Member
TrilsOn, did you get Solar City to install your panels? I would actually love to hear one of their customer experience stories.
- K
- K
I had the complete opposite experience. The panel count was tailored perfectly down to the tier boundary from PGE, which turned out to be spot on. No contractors, they upgraded our main panel for free (which would have cost us $2000+) and were nothing but professional and courteous. We asked for a lot from them and they bent over backward to accommodate us. The only quibble we had was the inverter fan was a bit noisy on hot days and they installed it too close to our office window.
We'll be calling them again for our new place, and having them tightly coupled with Tesla is a net positive to me.
Merging at the moment it's a bad move, Tesla is trying to ramp up production and finalizing the 3, yet on the long run it would be beneficial.
I agree with greenemg, Tesla could be trying to use solar power as a means to sell their cars in certain states and to further expand their SC network.
I reluctantly say yes.
I agree with greenemg, Tesla could be trying to use solar power as a means to sell their cars in certain states and to further expand their SC network.
I reluctantly say yes.
JeffK
Well-Known Member
Keep in mind this will add half a billion dollars annually to Tesla's revenue numbers with an increasing trend the last few years.
But it might help Tesla sell batteries.
Depends on the state. In CA where utilities have to be 50% sustainable power, the cheapest way for power companies to do this is to provide net metering (allowing a person to install solar panels and bank the excess power with the power company) and an incentive based on the capital costs for the utility to build solar, geothermal or wind power plants and power storage.
Extension of the 30% Federal Tax credit helps also as on the lease, Tesla Energy (Solar City) gets back 30% of the install price.
As with the extension of the 30% Federal Tax credit, the election is important to boost the tax credits and incentives at Federal level since that is where the $1T in oil subsidies, oil trade deficits, oil military costs are seen. We can eliminate $1T in unproductive costs to US economy by subsidizing solar power and companies like Tesla Solar.
1. Federal direct incentives for non-polluting power installations, solar, wind.
2. Net metering requirements by state to refund electric costs and to allow banking of power.
Tesla Solar (Solar City) business model was built on state net metering, state and Federal incentives to build out sustainable power.
Key is those incentives are in US national interest
Not off grid but allow utility to build out solar and wind power and store power at the user site via the Tesla battery systems. Grid tie systems make perfect sense. Use and store free energy locally while having grid for all other times. The utility system can be smaller, the energy system overall is more efficient as lower transmission losses and it's clean energy.
Higher utility energy prices the better locally owned solar or wind with storage looks.
N5329K
Active Member
JeffK
Well-Known Member
I will argue that utility scale solar gives twice the value to taxpayers and fairly distributes the benefit to all.
ucmndd
Well-Known Member
Solar City share prices are certainly a bargain right now, which no doubt presents an opportunity. I think the market has been too harsh on them in regard to fears of net metering and tax incentives going away. As panel prices continue to fall precipitously, demand will exist even as the subsidies phase out.
It certainly makes sense in terms of the "Musk Industries" vision. Tesla storefronts can become experts in helping electric vehicle customers size and scope home energy systems that maximize value in specific geographic areas, taking into consideration utility rate plans, available incentives, etc.
"Well Mr. Jones, now that you've built your Model 3, we've run an analysis based on your roof exposure, utility, current energy consumption, and stated driving habits. To maximize savings we recommend a X KW solar system with a Y KW Powerwall and selecting the "EV-Z" plan from your utility. Here's a printout showing your energy costs and savings over the course of a year. Will that be cash or credit?"
It certainly makes sense in terms of the "Musk Industries" vision. Tesla storefronts can become experts in helping electric vehicle customers size and scope home energy systems that maximize value in specific geographic areas, taking into consideration utility rate plans, available incentives, etc.
"Well Mr. Jones, now that you've built your Model 3, we've run an analysis based on your roof exposure, utility, current energy consumption, and stated driving habits. To maximize savings we recommend a X KW solar system with a Y KW Powerwall and selecting the "EV-Z" plan from your utility. Here's a printout showing your energy costs and savings over the course of a year. Will that be cash or credit?"
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