Tesla has bought solar energy company Solarcity for close to £1.96 billion in order to integrate its technology into the charging systems of Tesla cars.
Solarcity is an American company responsible for designing, making and supplying solar power systems for houses and business. Tesla has said the company's technology is well suited to supplying energy for its electric cars.
The deal will see Tesla become a completely 'vertical' energy company, providing customers with everything from the power source to the car itself.
In a previous letter of intent to Solarcity ahead of the deal, Tesla explained that the solar systems would also retain their ability to power everything else in a house or office.
It said: “With your Tesla Model S, Model X or Model 3, your solar panel system, and your Powerwall all in place, you would be able to deploy and consume energy in the most efficient and sustainable way possible, lowering your costs and minimising your dependence on fossil fuels and the grid.”
Tesla and Solarcity have been working together for some time, as Tesla has been supplying its fellow American brand with battery packs. Both companies have reported losses in their most recent quarterly statements.
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Regardless of shares and stocks
Reading in other media, there
To me, that's business and a business is only worth what someone wants to pay for it.
Gone are the days though when car companies used to be just car companies though...
"insiders are confident a
Very unlikely. The drop in Tesla's share price is greater than the jump in SolarCity's showing that Tesla investors currently value the latter at less than zero.
It's pretty outrageous that there was no mention of this proposed deal when Tesla did its most recent equity fundraise as most investors believed the money would be going towards developing the Model 3, not bailing out another of the chief executive's companies.
Share price drop. Maybe you're confused
Telsa Share prices --- Mar 2013 $35, Feb 2016 $150, Now $196. Selected prices I know but in 3 years the price has gone from $35 to $200. Maybe you getting confused with BMW whose share price has gone from around 105 to 74?? But then that's not anti-Telsa
*sigh*
Tesla's shares shed over 10% on the news which equates to a loss in company value of about $3.2 billion. That's greater than the proposed acquisition price of SolarCity which shows you what Tesla's shareholders think of the deal.
SolarCity is burning cash and without some sort of bailout is likely to go bankrupt. Musk is just proposing to spend Tesla shareholders' cash to rescue his other investments. Seeing Tesla obsessives try and rationalise this fact is just totes adorbs.