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Tesla / Solarcity merger, Brilliant or Disaster?

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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?

 

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

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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.

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10 minutes ago, A Horse With No Name said:

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

Aaaaaaagreeeeed!

  • Upvote 1

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