Elon Musk’s Tesla offers to acquire Elon Musk’s SolarCity for $2.8B

How is this even allowed?

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Shareholders? He doesn't own the whole company

This whole Elon Musk thing is just Enron 2.0

SolarCity sounds like Masdar
youtube.com/watch?v=NIaz61zpLfs

corporate personality

JUST

Actually didn't Enron do the exact same thing when it unloaded all of it's bad debt on sister companies?

?

The share holders of one of his companies want to buy his shares of another one?

hes tired of shorts wrecking his financial company Solar City

A little different since these were private and Solar City is public.

Enron used special purpose entities—limited partnerships or companies created to fulfill a temporary or specific purpose to fund or manage risks associated with specific assets. The company elected to disclose minimal details on its use of "special purpose entities". These shell companies were created by a sponsor, but funded by independent equity investors and debt financing. For financial reporting purposes, a series of rules dictate whether a special purpose entity is a separate entity from the sponsor. In total, by 2001, Enron had used hundreds of special purpose entities to hide its debt.

Same idea though.

Solar City was going bankrupt this year, with a $700 million cash burn/qtr. TSLA now assumes that cash outflow.

Nice win against Spain today

Yeah, he is refinancing his bankrupt company making it look like a investment

Thanks

Judaism

Which is a joke because Tesla itself is burning massive amounts of cash and just raised $2.1B to stay alive.

That will now be basically used up.

And they are funding the purchase through TSLA shares, which are in freefall and will take more and more shares xD

He's cashing out. His brother and jim own huge shares in Solar City. They'll get a cash lump sum to hide away. Then when Tesla goes all Enron on their asses, The Musks will still have loads of money.

Are we witnessing the Corleone family of the 21st century?

Forgot pic

If those are rpivate companies, and the money is private, how is solar city public?
Sorry for my ignorance but I always knew tesla was just a meme, but didn-t know they also owned spacex, which is not entirely a meme company but it has had some really ugly failures in its history laucnhing shit to space.
also never heard of solar city.
any recomended links?

It's considered okay of third-party assessor (usually an investment bank that doesn't have current or past business with either company or the directors of the companies) signs off as the offer being fair value.

Usually, the controlling shareholders of either companies will recuse themselves from voting, letting the minority shareholders decide whether to proceed with merger or not.

Spics can't figure it out, top Kek

>allowed

What??? this corporate finance not religion.

No, I got it, it's basically legal money laundering. But it's a really fucking obvious one and I'm wondering why it's even legal.

I work in accounting/finance industry and I've been saying this for years. When Elon Musk is finally exposed, he's going to make Kenneth Lay look like a fucking boyscout.

Solarcity employee here. Got the email about this today around 2pm PST.

Not entirely sure how I feel about this. On one had, SCTY stocks are trash right now. They were at 60 dollars a share when I was hired, and are now down to 21. On the other, trading SCTY stock for TSLA stock may be an interesting way to go.

As it is, we are pretty close with Tesla.
A. Both being Elon Musk involved companies
B. Utilizing Tesla batteries for Battery Backup

We're close with Tesla. Tesla and SpaceX both have Solarcity solar systems installed on their buildings.

I'll be interested to see where this goes. If it tanks both, well, I'll just ride it out. Worst that can happen is that I collect Unemployment for a bit till I find another job. If it does well, well, I have SCTY stock, so...

He's Majority share holder.

Solar City (ticker:SCTY) and Tesla (TSLA) are public.

SpaceX is private.

However, SpaceX is valued at $12B, so ~4 times as much as Solar City. That's based on its last funding round of $1B in January 15.

Tesla is valued at ~30B, but since it is public its valuation can fluctuate due to share price.

For example after this """""""deal"""""" was announced, shares are already down 12% after hours. It essentially lost 1 Solar City in market cap just announcing its intentions to purchase it.

Tesla doesn't own SpaceX, its just that the same people own majority stakes in these companies.

DFJ (Draper Fisher Jurvetson) is one of the biggest VCs in the valley and has funded the 'musk experiment' dating back to PayPal.

How does it feel that your options are worth nothing :(

to the moon friend... or better yet... TO MARS!!!

>mfw i recently wrote in a corporate law exam essay that Musk is to be commended because he demonstrates effective risk taking and the free market should not make him more liable for his efforts if we are to advance technologically and socially

I'm more concerned that Tesla is strapped for cash and buying a company that's even worse off.

The gigafactory isn't online and Telsa isn't anywhere near being prepared for the model 3 demand.

sounds like you took the wrong side of the argument

exactly

i think this is the start of the downfall. once due diligence is done on this offer, everything will unravel

>tesla
>strapped for cash
>400k model 3 presales, 1k a pop, $400MM
>2.9% of total unearned revenue
>

>How is this even allowed?

Because it's his company, faggot.

>sounds like you took the wrong side of the argument

it was a question about how liable should directors be

i tried to be measured and say you need to not have unlimited liability but you can't make directors too liable otherwise we don't see experimentation and progress ie Musk

400M isn't that much when they are losing 900M a year.

Their revenue is increasing but they were already undertaking massive investments and now they just bit off a huge chunk of something else. It's too much, too fast. It might be different if they had just bought a company that was in the black.

>be in 2018
>already not profitable
>build new car for $50,000
>sell new car for $35,000
>lose money on every car sold
>go bankrupt

kewl story bru

is this guy even actually genius, or is he just a salesperson like a steve jobs type?


just wondering cause thats what i assume and when he talks about AI and flying cars it irritates me, but if im wrong soeone should correct me

Jobs actually made a product, whoever shit it was

This is a start-up, investment scam

the AI thing was just an offhanded question at a Recode conference that the media jumped on because they're huge faggots.

id say by his ability to finance his vision he's a genius already.

getting wall street to buy into it all.

i don't know if he's a genius in a traditional sense, but he comes across as a knowledgable engineer.

he's also extremely dedicated, sleeps 4 hours a night and runs 2 (make that 3 now) companies simultaneously.

Jobs didn't make shit, Wozniak made a product. Jobs just came in and applied his hipster chakra bullshit, and somehow managed to convince a shit tonne of people that Apple tech is actually good. Fuck that dude.

he sounds alright tbqhfam

All these poorcucks mad he knows how to ride the system

Should atleast give him props for being an insane risktaker

Indifferent. Don't have shit for a portfolio anyway. They just hand the stock out to us simply for being employees.

I have nothing really tied down. So, I can totally ride this ship, even if it's sinking.

We're Installers on the Moon! We carry a Zep Tool!

>implying Tesla stock means anything when the company is literally doubling its production rate every year
>implying based Elon isn't ripping off the shit out of Reddit by getting them to buy his stocks to fund his companies

tesla stock means something when they're using said stock to buy Solar City

tesla stock means something when the only way they raise money is through issuing shares because they aren't profitable and as posted above their cash burn is horrible

I wouldnt exactly call Tesla a meme. They are selling boatloads of Tesla. They are considered a luxury car that are better than most beamers and mercedes'. I would still just buy the 2016 Corvette though to get the most bang for the buck on dank cars. God damn do those corvettes look clean at 55k

They aren't "profitable" because they pour all their profits into R&D

Still salty that you fell for the Tesla stock meme?
KEK
>mfw Tesla literally can't produce cars fast enough to satisfy even 1/10 of the people who want to buy them

>implying i haven't owned shares since $30
>implying i don't just buy/sell TSLA options instead now
>implying i don't have my model open displaying just how unprofitable they are
>implying they have """""profits""""" to put into r&d
>implying you know how to read a balance sheet

nice try elon

ol musk and tesla/space-x/solarcity its all a patent scam, they are using free money to develop tons of patents for themselves, they will hemorrhage money and then declare bankruptcy and then make billions for themselves over the next 30 years on their patent catalog.

Better not be i have like 56k in stock with this fucker.

> dat imploding expense over next 3 years

the tesla meme, is dead.

get out now

Tesla has been dead since it's inception, Musk had no idea what it takes to churn out (((affordable))) cars.

who would have guessed it costs a lot of money to build '500,000 cars'

insider trading anyone?

>city
>40,000 people.

My suburb has a population of 100,000

I've owned TESLA and Solar city stock.

It's a meme stock just like twitter was. The valuations were insane and based only on hype. Much like all these stocks they go down to the ground eventually.

But a very few end up making something truly revolutionary like the Ipod or something. Unless Tesla comes up with something crazy it's going down to $130 ish imo

ITT: shit-scared driverfags clinging to any hope at all that their dumb cars won't be banned and hauled away for scrap.

Go to bed Elon.

Can someone explain to me what's wrong with this? I see nothing wrong with this whatsoever. Everything is complete legal and above board.

It's just butthurt/jealous faggots and communist berniefag invaders from Reddit who hate Musk

Real Sup Forums supports the madman because he's making sci fi real

Autonomous car
Only defensive driving it knows is to stop
Automated routing determines that the quickest route is down Martin Luther King Jr Blvd
Craylese Leroy Simpson happens to be crossing the street, not at an intersection

Are you retarded?
youtube.com/watch?v=9I5rraWJq6E

Kek, tsla shareholders are so fucking obnoxious that I'm glad this shit is tanking.

>mfw your model doesn't take economies of scale into account

Your model doesn't take economies of scale into account. It will eventually become cheaper and cheaper for TSLA to produce additional units particularly for the Model 3.

Any notion of a cost implosion is fearmongering. Costs will increase, but at some point, the rate of cost increases will begin to decline.

>tfw Sup Forums knows nothing about manufacturing business

Have you driven a Tesla? They are incredible cars. He is clearly a competent engineer - or at the very least good at hiring the best.

>Nevada Power Generation is threatened by SCTY
>Bribe city to ban solar companies because hurr they're power companies not tech companies
>SCTY leaves Nevada
>No longer services the sunniest state in the USA
>Same shit happening in New Mexico and Arizona

Literally, government is a disease. SCTY would be borderline profitable if assholes in power rn weren't such corrupt pricks.

>government cant ban guns for fear of gun lobby
>thinks the government has the power to cuck the oil lobby

>Implying they won't lose all the patents in bankruptcy

>implying TSLA doesn't benefit for image and brand power
>implying TSLA doesn't use cheap Beta-male labor

They literally overwork summer coop wannabe mechatronic students into the ground

Doesn't matter how he does it. Not sure what your point is.

yes it does.

the theoretical jumps in production are very high. so costs go up as well. inputs aren't affected by economies of scale as much as you think..

the screenshot is of my 'best case' for their production.. look at that ramp up: 80k cars this year, 150k next year, and then 500k like they have stated in 2018

not sure where i didn't take economies of scale into account.

anyway this model will have to be completely redone now that this SCTY cluster fuck will kill the company

money brings new hair?

> implying that TSLA can't just issue more debt or equity

That was a rough night. I was there in the office with my boss and or regional operations manger when that news came in. Like a week before Christmas, and they lay off a shit load of people.

But there is good news. We're opening in Utah very soon.

People on Sup Forums and /biz/ barely understand either the market or business. Why else would insane speculation be so rampant. To the moon is funny and all, but not when people are taking it seriously.

>Already made boatloads of money shorting meme companies like tesla and linkedin this winter
>Just shorted tesla again

Your donations are appreciated. Time for your reminder that I told you to buy AEM last december it was free money.

I'd get it out. I live almost within a mile of where they are putting in a factory and some offices, which they claimed would be done a year ago and would bring in close to 5,000 new jobs. It's on the local news regularly because it's been nothing but delays and they always want more tax breaks from the local and state government.

>Shorted LinkedIn
>Right when MSFT announced LNKD purchase

Shiggydiggy

>Winter
Reading comprehension bro. That February holocaust was orgasmic because apparently retards were surprised that a worthless website is actually, you know, worthless.