Breaking: Tesla Makes an Offer to Acquire SolarCity
Hmmmm. Me is thinking about how good (or bad) the timing of this is....thoughts?
Hmmmm. Me is thinking about how good (or bad) the timing of this is....thoughts?
-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
Tesla makes offer to acquire Solar City
- Thread starter Gilzo
- Start date
-
- Tags
- Tesla Inc.
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.
bonnie
I play a nice person on twitter.
I didn't see it coming either. I'm holding some SCTY, nothing massive, so umm, hmmm. Will be interesting to watch play out.
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.
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.
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".
TaoJones
Beyond Driven
Tam
Well-Known Member
Tam
Well-Known Member
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
Tam
Well-Known Member
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?
ttupper92618
Member
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?
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?
Tam
Well-Known Member
I don't think it is unreasonable but I have never correctly predicted a stock movement at any given moment in future.
Similar threads
