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

Skotty

2014 S P85 | 2020 3 P19"
Jun 27, 2013
2,589
2,059
Kansas City, MO
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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Thanks for the feedback!
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.
I was confused! Thanks for the info- now changed
Quick spell check -- from the post "the to companies". Should be "two".
Thanks!
 
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!:(
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!
 
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.
 
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Drax7

Active Member
May 18, 2013
2,466
7,983
Florida
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 .
 

TheTalkingMule

Distributed Energy Enthusiast
Oct 20, 2012
10,178
52,046
Philadelphia, PA
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.
 

Skotty

2014 S P85 | 2020 3 P19"
Jun 27, 2013
2,589
2,059
Kansas City, MO
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.

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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DAMON FELKER

M3LR/WHITE/BLACK INT./19" OD 12/27 Del. 3-20-22
Jun 8, 2016
30
15
SAN DIEGO
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.
:) I Totally agree with you
 

traxila

Active Member
Supporting Member
Nov 25, 2012
3,035
23,514
NYC
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.
 

Curt Renz

Well-Known Member
Mar 5, 2013
7,535
111,806
USA
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.
 
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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 the motivation. But they are irrelevant, if the rationale presented by Mr. Musk is sound.
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.
 

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