dfelt

Tesla / Solarcity merger, Brilliant or Disaster?

5 posts in this topic

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
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

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 emoticons maximum 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.




  • Similar Content

    • By William Maley
      If you happened to be perusing the Monterey, CA Craigslist this morning, you might have come across an interesting ad.
      Someone had posted an ad for a Tesla Model 3. The vehicle allegedly has about 2,000 miles on the odometer. Like many of Model 3s currently rolling off the production line, this is the long-range variant with a 310-mile range. Other features include a panoramic glass roof, upgraded sound system, and "Aero" wheels. The price? $150,000.
      Our favorite part of the ad is the last line; "THIS IS REAL." Red flag anyone?
      The ad has been taken down since various outlets started reporting on it. There is an interesting reason as to why. If you look at the ad, you'll notice a VIN number of 209. As Electrek notes, Tesla employees and company insiders are the only people getting Model 3s at this time. Customer deliveries are expected to begin this month. If you are a Tesla employee, there is language in the Model 3 ordering agreement that states you cannot sell a Model 3 more than the original price that you bought it for. 
      Electrek was able to confirm this Model 3 is owned by an employee of a Tesla store in Monterey. 
      Source: Electrek, Monterey Craigslist via Internet Archive

      View full article
    • By William Maley
      If you happened to be perusing the Monterey, CA Craigslist this morning, you might have come across an interesting ad.
      Someone had posted an ad for a Tesla Model 3. The vehicle allegedly has about 2,000 miles on the odometer. Like many of Model 3s currently rolling off the production line, this is the long-range variant with a 310-mile range. Other features include a panoramic glass roof, upgraded sound system, and "Aero" wheels. The price? $150,000.
      Our favorite part of the ad is the last line; "THIS IS REAL." Red flag anyone?
      The ad has been taken down since various outlets started reporting on it. There is an interesting reason as to why. If you look at the ad, you'll notice a VIN number of 209. As Electrek notes, Tesla employees and company insiders are the only people getting Model 3s at this time. Customer deliveries are expected to begin this month. If you are a Tesla employee, there is language in the Model 3 ordering agreement that states you cannot sell a Model 3 more than the original price that you bought it for. 
      Electrek was able to confirm this Model 3 is owned by an employee of a Tesla store in Monterey. 
      Source: Electrek, Monterey Craigslist via Internet Archive
    • By William Maley
      Between now and 2022, at least 50 electric vehicles will be launched. They'll be coming from the likes of Volkswagen, Diamler, and General Motors. Heck, even Dyson is getting into the game. But why this rush to get EVs on the road? It comes down to two things, Tesla and upcoming regulations.
      “Nobody doubts that the future will be electric. The car companies dragged their feet with electric. Now they are being dragged into it by Tesla and by regulations,”  said Erich Joachimsthaler, founder and CEO of brand-strategy firm Vivaldi to Bloomberg.
      Tesla makes sense as they have created a cult of personality with rabid fans and somehow selling vehicles like hotcakes. As for the regulations, various countries such as France and Great Britain have announced bans on internal combustion engines in new vehicles in the near future. Other places such as China and the state of California are considering similar bans. China has also introduced regulations meant to cut emissions and pollution by 2030. One of those is for automakers to sell a certain percentage of "of so-called new-energy vehicles -- which include electric cars" to obtain credits to sell models with internal combustion engines.
      But there are questions about this move. For one, how is any automaker going to make money with EVs? At the moment GM loses $9,000 for every Chevrolet Bolt EV sold, while Fiat Chrysler Automobiles loses an eye-watering $20,000 on each Fiat 500e sold. Battery tech is one of the key reasons for this, but new technologies and improvements are helping bring the price down. 
      Also, will consumers embrace this onslaught of EVs? Last year, EVs only made up less than one percent of the U.S. market.
      “Companies are committed to electric cars, but there is little evidence that there is a lot of consumer demand for it,” said Kevin Tynan, senior analyst with Bloomberg Intelligence.
      Source: Bloomberg

      View full article
    • By William Maley
      Between now and 2022, at least 50 electric vehicles will be launched. They'll be coming from the likes of Volkswagen, Diamler, and General Motors. Heck, even Dyson is getting into the game. But why this rush to get EVs on the road? It comes down to two things, Tesla and upcoming regulations.
      “Nobody doubts that the future will be electric. The car companies dragged their feet with electric. Now they are being dragged into it by Tesla and by regulations,”  said Erich Joachimsthaler, founder and CEO of brand-strategy firm Vivaldi to Bloomberg.
      Tesla makes sense as they have created a cult of personality with rabid fans and somehow selling vehicles like hotcakes. As for the regulations, various countries such as France and Great Britain have announced bans on internal combustion engines in new vehicles in the near future. Other places such as China and the state of California are considering similar bans. China has also introduced regulations meant to cut emissions and pollution by 2030. One of those is for automakers to sell a certain percentage of "of so-called new-energy vehicles -- which include electric cars" to obtain credits to sell models with internal combustion engines.
      But there are questions about this move. For one, how is any automaker going to make money with EVs? At the moment GM loses $9,000 for every Chevrolet Bolt EV sold, while Fiat Chrysler Automobiles loses an eye-watering $20,000 on each Fiat 500e sold. Battery tech is one of the key reasons for this, but new technologies and improvements are helping bring the price down. 
      Also, will consumers embrace this onslaught of EVs? Last year, EVs only made up less than one percent of the U.S. market.
      “Companies are committed to electric cars, but there is little evidence that there is a lot of consumer demand for it,” said Kevin Tynan, senior analyst with Bloomberg Intelligence.
      Source: Bloomberg
    • By William Maley
      Earlier this week, Tesla announced its quarterly production figures and the Model 3 is getting off to a slower start than expected.
       
      In a statement, Tesla said that it had delivered a total of 26,150 vehicles in the third quarter. Here is how it breaks down,
      Model S: 14,065 Units Model X: 11,865 Units Model 3: 220 Units Only 260 Model 3s were built in the third quarter. Tesla said the reason for the small production of Model 3s was due to "production bottlenecks." The company didn't go into detail as what the bottleneck is. This isn't a good start as Tesla promised to build 5,000 Model 3s by the end of the year.
      "It is important to emphasize that there are no fundamental issues with the Model 3 production or supply chain. We understand what needs to be fixed and we are confident of addressing the manufacturing bottleneck issues in the near-term," said Tesla.
       
      Source: Tesla
      Press Release is on Page 2


      Tesla Q3 2017 Vehicle Deliveries and Production

      PALO ALTO, Calif., Oct. 02, 2017 (GLOBE NEWSWIRE) -- In Q3, Tesla delivered 26,150 vehicles, of which 14,065 were Model S, 11,865 were Model X, and 220 were Model 3. This was our all-time best quarter for Model S and X deliveries, representing a 4.5% increase over Q3 2016, our previous best quarter, and a 17.7% increase over Q2 2017.
      We had previously indicated that second half Model S and X deliveries would likely exceed first half deliveries of 47,077, but we now expect to exceed that by several thousand vehicles. In total, we expect to deliver about 100,000 Model S and X vehicles in 2017, which would be a 31% increase over 2016.
      In addition to Q3 deliveries, about 4,820 Model S and X vehicles were in transit to customers at the end of the quarter. These will be counted as deliveries in Q4 2017.
      Q3 production totaled 25,336 vehicles, with 260 of them being Model 3. Model 3 production was less than anticipated due to production bottlenecks. Although the vast majority of manufacturing subsystems at both our California car plant and our Nevada Gigafactory are able to operate at high rate, a handful have taken longer to activate than expected.
      It is important to emphasize that there are no fundamental issues with the Model 3 production or supply chain. We understand what needs to be fixed and we are confident of addressing the manufacturing bottleneck issues in the near-term.
      Our delivery count should be viewed as slightly conservative, as we only count a car as delivered if it is transferred to the customer and all paperwork is correct. Final numbers could vary by up to 0.5%. Tesla vehicle deliveries represent only one measure of the company's financial performance and should not be relied on as an indicator of quarterly financial results, which depend on a variety of factors, including the cost of sales, foreign exchange movements and mix of directly leased vehicles.

      View full article
  • My Clubs

  • Who's Online (See full list)