Jump to content
  • Greetings Guest!

    CheersandGears.com was founded in 2001 and is one of the oldest continuously operating automotive forums out there.  Come see why we have users who visit nearly every day for the past 16+ years. Signup is fast and free, or you can opt for a premium subscription to view the site ad-free.

dfelt

Tesla / Solarcity merger, Brilliant or Disaster?

Recommended Posts

G. David Felt
Staff Writer Alternative Energy - www.CheersandGears.com

 

Tesla / Solarcity merger, Brilliant or Disaster?

Tesla-Solar-City-Merge.png

Tesla announced their intent to buy SolarCity and some screamed the sky is falling. Tesla moves forward with offering a complete home solution of Solar panels, battery bank and 220V charging for your Tesla and believes they have the future tied up in a single one stop shopping solution that beats all the other Auto OEMS.

solarcity-tesla-energy-storage_edit_edited-2-100580756-large.idge-100638774-large.idge.jpg

The merger final vote by Solarcity shareholders is scheduled for Nov 17th 2016. Yet with this deal not done yet, there are many that have divided into two camps, those that think this is brilliant such as reported by Barron's yesterday that ISS one of the largest outside analyst groups that advises shareholders on mergers gave it's blessing to what they believe is an outstanding tie up of two companies that can maximize return on investments. Barron's believes that Tesla has addressed all the concerns that allow for a successful merger of the two companies and a maximizing of complementary products.

Barron's Story

One CNBC story feels that this merger might even be a little late. They agree that Solarcity will provide about $1 Billion next year in revenue to the new merged company and add about $500 million in cash to the Tesla corporation over the next 3 years.

CNBC Story

Then you have the latest story also from CNBC where a different analyst believes this is nothing but one large mistake and that is due to what he sees as an impossible return on the investment. Yet even with that he also points out to strong supporters such as Ron Baron who ownes 1.5 million shares that see a 30 to 50 times return on the stock due to the merger. 

CNBC Story 2

Yet with all this,  “Playing Amish Paradise in my Tesla,” Musk shared with his 5.8 million Twitter followers on Sunday we have the man himself seeing a much simpler life for us all in the new EV world.

 

So what is your thoughts on this whole merger and the new EV world Musk sees for us all?

 

Share this post


Link to post
Share on other sites

I see both as being cash flow challenged and agree with Bob Lutz that Tesla will need to make major changes to even survive.

Share this post


Link to post
Share on other sites

Seems Tesla is on a Roll, Musk wants to speed up his dream of machines creating machines and remove the human error factor out of the factory.

Tesla Buying Germany's Grohmann Engineering To Automate, Accelerate Production

 

Forbes just reported this story

The company is to be named Tesla Grohmann Automation. Part of his new Tesla Automation group.

Share this post


Link to post
Share on other sites

I hope like hell it works out for Musk....!  Love Tesla, want to see it grow.

Share this post


Link to post
Share on other sites

Your content will need to be approved by a moderator

Guest
You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Who's Online   0 Members, 0 Anonymous, 2 Guests (See full list)

    There are no registered users currently online



  • Similar Content

    • By William Maley
      Tesla only has one assembly plant in Fremont, California. But that could be changing in the near future.
      Yesterday, Tesla and the and the Shanghai government reached a preliminary deal for a new assembly plant. The automaker expects production in about three year's time, provided they can get the approvals and permits needed. Tesla says the plant could build up to 500,000 vehicles annually. According to Bloomberg, the plant is expected to build the Model 3 sedan and upcoming Model Y crossover.
      Tesla building a plant in China doesn't come as surprise. The country is the largest market for electric vehicles, and most forecasters believe sales will skyrocket as government regulations push toward a goal of 100 percent electric vehicles by 2030.
      There are some questions about this new factory. For one, how is Tesla going to pay for this new plant? At the end of the first quarter, the company burned through $2.7 billion, mostly due to various issues dealing with ramping up Model 3 production. The Shanghai government said it would help cover some of capital costs.
      The other is will Tesla need to share technologies with a Chinese partner. Currently, any foreign automaker has to enter into a joint venture with a Chinese automaker and transfer various technologies.
      "For technology transfer, it is a matter subject to negotiation between the enterprises," said Huang Ou, deputy head of the Shanghai government’s economy and information technology commission.
      The Chinese government announced back in May that it would scrap the rules for "capping foreign ownership of new-energy vehicle ventures" by 2022.
      Source: Bloomberg, Reuters

      View full article
    • By William Maley
      Tesla only has one assembly plant in Fremont, California. But that could be changing in the near future.
      Yesterday, Tesla and the and the Shanghai government reached a preliminary deal for a new assembly plant. The automaker expects production in about three year's time, provided they can get the approvals and permits needed. Tesla says the plant could build up to 500,000 vehicles annually. According to Bloomberg, the plant is expected to build the Model 3 sedan and upcoming Model Y crossover.
      Tesla building a plant in China doesn't come as surprise. The country is the largest market for electric vehicles, and most forecasters believe sales will skyrocket as government regulations push toward a goal of 100 percent electric vehicles by 2030.
      There are some questions about this new factory. For one, how is Tesla going to pay for this new plant? At the end of the first quarter, the company burned through $2.7 billion, mostly due to various issues dealing with ramping up Model 3 production. The Shanghai government said it would help cover some of capital costs.
      The other is will Tesla need to share technologies with a Chinese partner. Currently, any foreign automaker has to enter into a joint venture with a Chinese automaker and transfer various technologies.
      "For technology transfer, it is a matter subject to negotiation between the enterprises," said Huang Ou, deputy head of the Shanghai government’s economy and information technology commission.
      The Chinese government announced back in May that it would scrap the rules for "capping foreign ownership of new-energy vehicle ventures" by 2022.
      Source: Bloomberg, Reuters
    • By dfelt
      Gotta love EV owners plates:















    • By William Maley
      Tesla has finally done it. Over the weekend, the company hit their milestone of producing 5,000 Model 3s in a week only a few hours after the deadline set by CEO Elon Musk - the end of the second quarter. Two Tesla factory workers told Reuters that the 5,000th Model 3 cleared final inspection around 5:00 AM PDT.
      “We did it!! We either found a way or, by will and inventiveness, created entirely new solutions that were thought impossible. Intense in tents. Transporting entire production lines across the world in massive cargo planes. Whatever. It worked,” said Tesla CEO Elon Musk in an email to employees.
      “I think we just became a real car company.”
      Reaching this goal was quite hard for the automaker. Numerous delays and production issues caused Tesla to push back production milestones on a seemingly regular basis. The company had to build a makeshift assembly line in a tent within the past month to help bolster production.
      But can Tesla keep up this output? There are concerns they might not be able to do it. According to one worker, Tesla sent employees from other departments to the Model 3 production line to keep it going. This including shutting down parts of the factory such as the Model S production line.
      “Reaching it is one thing,” said  Dave Sullivan, manager of product analysis for AutoPacific Inc to Bloomberg.
      “Consistently producing 5,000 per week with outstanding quality is another.”
      Source: Bloomberg, Reuters

      View full article
    • By William Maley
      Tesla has finally done it. Over the weekend, the company hit their milestone of producing 5,000 Model 3s in a week only a few hours after the deadline set by CEO Elon Musk - the end of the second quarter. Two Tesla factory workers told Reuters that the 5,000th Model 3 cleared final inspection around 5:00 AM PDT.
      “We did it!! We either found a way or, by will and inventiveness, created entirely new solutions that were thought impossible. Intense in tents. Transporting entire production lines across the world in massive cargo planes. Whatever. It worked,” said Tesla CEO Elon Musk in an email to employees.
      “I think we just became a real car company.”
      Reaching this goal was quite hard for the automaker. Numerous delays and production issues caused Tesla to push back production milestones on a seemingly regular basis. The company had to build a makeshift assembly line in a tent within the past month to help bolster production.
      But can Tesla keep up this output? There are concerns they might not be able to do it. According to one worker, Tesla sent employees from other departments to the Model 3 production line to keep it going. This including shutting down parts of the factory such as the Model S production line.
      “Reaching it is one thing,” said  Dave Sullivan, manager of product analysis for AutoPacific Inc to Bloomberg.
      “Consistently producing 5,000 per week with outstanding quality is another.”
      Source: Bloomberg, Reuters
  • My Clubs

  • Recently Browsing

    No registered users viewing this page.

  • Reader Rides

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.