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Elon Musk's Tesla Plans To Acquire Elon Musk's SolarCity For $2.7B In Stock (techcrunch.com) 55

An anonymous reader writes from a report via TechCrunch: Today, Elon Musk's electric car and battery company Tesla has announced its offer to buy solar panel installation company SolarCity. Now is a better time than ever to acquire SolarCity, as it recently had its value downgraded. If Tesla does acquire SolarCity, the companies could allow you to outfit your home with solar panels that power a giant battery for your various appliances, such as an electric vehicle. The deal, which has yet to be approved by SolarCity and its board, involves SolarCity's stock being exchanged for Tesla stock. TechCrunch reports that "the deal would pay a premium of 21% to 30% on top of SolarCity's value of $2.14 billion, so Tesla would be buying SolarCity for between $2.59 billion and $2.78 billion worth of its stock." The Tesla team writes, "It's now time to complete the picture. Tesla customers can drive clean cars and they can use our battery packs to help consume energy more efficiently, but they still need access to the most sustainable energy source that's available: the sun." Elon Musk has also been in the news today through OpenAI, the artificial-intelligence non-profit backed by Elon Musk, Amazon Web Services and others. OpenAI announced it is working on creating a physical robot that performs household chores.
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Elon Musk's Tesla Plans To Acquire Elon Musk's SolarCity For $2.7B In Stock

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  • by Anonymous Coward on Tuesday June 21, 2016 @05:21PM (#52362741)

    Elon Musk: So do we have a deal?

    [Elon gets up from his seat at one end of a massive conference table where he is flanked by lawyers, and walks around to the other end, where he sits down, flanked by other lawyers.]

    Elon Musk: We have an agreement.

    [Elon Musk gets up, crosses to the middle of the room, and shakes his own hand to the cheers of his fellows.]

  • New Name... (Score:5, Funny)

    by Thelasko ( 1196535 ) on Tuesday June 21, 2016 @05:24PM (#52362749) Journal
    Musk Industries. [wikipedia.org]
  • by comrade1 ( 748430 ) on Tuesday June 21, 2016 @05:25PM (#52362755)
    It's common for a successful company to buy out investors in an unsuccessful company as a way to move value out of the sham higher value company directly into the lower value company, because, of course, they'd rhe same investors. It's a way to get a pay off early without selling off your tesla stock. Same thing happened with the YouTube buyout by Google. The VC firm that funded both companies wanted a payoff even though at the time the deal made no sense.
    • by kwerle ( 39371 ) <kurt@CircleW.org> on Tuesday June 21, 2016 @05:30PM (#52362781) Homepage Journal

      Yeah - it's a shame that deal didn't work out for any of the involved parties.

    • by mbkennel ( 97636 )
      So, as an insider of Tesla he can't easily sell lots of Tesla stock.

      But as an insider of Solar City, he can sell without consequences the newly-acquired Tesla stock as soon as his Solar City shares are converted?

      He needs money for a divorce too. That was a bad investment.
    • by rtb61 ( 674572 )

      It is really all about the concept of a residential power solution. You can not sell just a branded battery, with a hodge podge for everything else, the panels, the inverter and the installation. To properly brand and create the concept of a long term investment, that the next property buyer can have confidence in, you need a single branded system. So it is say a, Tesla 1000X power system, with a long term investment value of ? depreciating annually at ? or a Tesla 10,000XXX system, all done by licensed in

  • When something is sold between separate companies controlled by one person, it might be for sound reasons of strategy or synergy.

    ROFL.

  • Made manifest. Progress.

  • ...worth from his investment in BeauHD for Slashdot's front page today...

  • Doesn't that scream "inefficient"?

    PS
    Oh, Li-Ion charge efficiency is close to 100%, never mind... ^^
    http://liionbms.com/pdf/Elithi... [liionbms.com]

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