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Why I’m voting yes on the Tesla-Solarcity Merger, and you should too.

Discussion in 'TSLA Investor Discussions' started by Clprenz, Sep 19, 2016.

  1. Clprenz

    Clprenz Member

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  2. dha

    dha Member

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    Nice post. Your first sentence is incorrect, though. The vote was never scheduled for this week. You may be confusing the vote itself for the shareholder record date, which is expected to be sometime this week.
     
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  3. Skotty

    Skotty 2014 Model S P85

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    Quick spell check -- from the post "the to companies". Should be "two".

    On a related note, I have been looking at getting rooftop solar some time in the not too distant future. Solar City on it's own appeared to be stuck to where they would never expand into my state. This might change with the merger. If so, I could easily become a new customer they wouldn't have had without the merger.
     
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  4. Clprenz

    Clprenz Member

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    Thanks for the feedback!
    I was confused! Thanks for the info- now changed
    Thanks!
     
  5. CHG-ON

    CHG-ON Still in love after all these miles

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    I have mixed feelings. I get the big picture of the concept. I'm not yet confident that they will execute that vision. I really hope they do.

    The only thing keeping me from going all solar is that I live in the middle of a redwood forest!:(
     
  6. Clprenz

    Clprenz Member

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    I couldn't agree more! The deal very much has two heads! (Grand vision vs. SCTY's Finances) Ultimately, my faith in Elon and Tesla's board has persuaded me to be in favor of the deal. Andrea James (previously TSLA analyst) made some good points in her interview with Dave T. - not sure where, but the entire thing is a must watch!
     
  7. Seesaw

    Seesaw Member

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    #7 Seesaw, Sep 20, 2016
    Last edited: Sep 20, 2016
    My view is that Tesla should not be in the installation game, there are potentially thousands of contractors around the world that could install solar panels and battery storage (and they already do).

    What happens when Tesla takes over SolarCity? They would need administration, staff, vehicles, and the associated expensive bureaucracy in every market on the planet. There is no economies of scale with installation, if anything it becomes more expensive the bigger the company gets.

    SolarCity is 3.4 billion in debt, lost half a billion last year, has falling installation rates, and are currently paying 7.4% in cost of capital. We are talking billions in investment in a company that will require billions in additional spending to get the scale Tesla needs.

    Tesla is better off utilising the existing huge installation industry and instead focus on product engineering and manufacturing.
     
  8. Drax7

    Drax7 Active Member

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    40% of tesla car customers purchasing solar panels / power walls ,
    Is difficult to say. I would be conservative with this estimate
    Until it proves otherwise. I have no way of guess estimating .
    I'll throw in a number like 10% , over the first 2 years, and
    Later on , as the product proves itself a higher one .
     
  9. TheTalkingMule

    TheTalkingMule Active Member

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    Anywhere scty can install without massive sales cost is/will be wildly profitable. Their PPA product has a massive premium and I don't see them "racing to the bottom" on straight install prices as noted above.

    When you go to install solar, do you think you'll choose some random guy to install cheap Taiwanese panels, or will you go with Elon installing American made panel that they'll stand behind for 25 years? That 15% premium vs the bottom is well worth it to the vast majority of consumers. If they find that unpalatable, then there's a zero down option with even more premium.
     
  10. Skotty

    Skotty 2014 Model S P85

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    Perhaps that part of the business will change with the merger. I thinks it's a potentially good idea for Tesla to focus on developing the hardware and using approved 3rd party installers to do installations. That makes a lot of sense to me. We'll see in the days ahead.
     
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  11. DAMON FELKER

    DAMON FELKER Member

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    :) I Totally agree with you
     
  12. traxila

    traxila Member

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    Have thousands in SCTY (ouch!) and hundreds in TSLA.

    VOTING YES.

    I am going to let Elon do his thing and not make believe I have it figured it out better than him. If it turns out that he has gone delusional, can't figure *sugar* out anymore and surrounded himself with yes men then so be it. I see his vision and if he can execute this will become a juggernaut of a company. I want electric cars and solar energy, so this works for me.
     
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  13. Seesaw

    Seesaw Member

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    But that is the SolarCity model.
     
  14. aubreymcfato

    aubreymcfato Member

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    also: shares of which company?
    I own both, but you ask me just shares of 1 company.
     
  15. Clprenz

    Clprenz Member

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    Good question
    The voting concern is really just with TSLA shareholders in this poll
    Don't know why any SCTY would be against.
     
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  16. Clprenz

    Clprenz Member

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    • Like x 1
  17. DAMON FELKER

    DAMON FELKER Member

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  18. Curt Renz

    Curt Renz Active Member

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    #18 Curt Renz, Sep 29, 2016
    Last edited: Sep 29, 2016
    As a Tesla shareholder, I will be voting yes for the acquisition of SolarCity. I would do the same if I were also a SolarCity shareholder. The unsound reasons suspected by many for Tesla’s CEO requesting a combination may indeed have been part of his motivation. But they are irrelevant, if the rationale presented by Mr. Musk is sound.

    I suspect that the institutional shareholders of Tesla see it the same way. If so, the merger should sail through.
     
  19. dmckinstry

    dmckinstry Model S - U.S. P - #1649

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    Likewise I'm only a TSLA shareholder, and intend to vote for the merger. Have you gotten proxy notification and meeting time/date yet? I haven't yet and don't expect to until next week some time.
     
  20. Curt Renz

    Curt Renz Active Member

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    Not yet.
     

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