Tesla Makes an Offer to Acquire SolarCity for $2.5bn - $3bn - Polidicks

[QUOTE]Tesla announced that it plans to acquire its sister company, SolarCity. Tesla CEO Elon Musk will hold a press call shortly. We will update with more information soon. Below you will find the announcement released by Tesla and Lyndon Rive’s, SolarCity’s CEO and Elon Musk’s cousin, letter to the board with the offer to buy the shares for $26.50 to $28.50 – a premium of approximately 21% to 30% over the closing price of SolarCity’s shares. ... [QUOTE]Dear Lyndon: We are pleased to submit to you and the SolarCity board of directors a proposal to acquire all of the outstanding shares of common stock of SolarCity in exchange for Tesla common shares. Subject to completing due diligence, we propose an exchange ratio of 0.122x to 0.131x shares of Tesla common stock for each share of SolarCity common stock. This proposal represents a value of $26.50 to $28.50 per share, or a premium of approximately 21% to 30% over the closing price of SolarCity’s shares, based on today’s closing price of SolarCity’s shares and the 5-day volume weighted average price of Tesla shares. We believe that our proposal offers fair and compelling value for SolarCity and its stockholders, while also giving SolarCity’s stockholders the opportunity to receive Tesla common stock at a premium exchange ratio and the opportunity to participate in the success of the combined company through their ongoing ownership of Tesla stock. The board of directors of Tesla is excited at the prospect of a potential combination of SolarCity’s business with Tesla. We believe that the possibilities for product, service and operational synergies would be substantial, and that a combination would allow our companies to build on our respective core competencies and remain at the forefront of delivering innovative approaches for sustainable transportation and energy. We believe that a combination would generate significant benefits for stockholders, customers and employees of both Tesla and SolarCity. [/QUOTE] [/QUOTE] [URL="http://electrek.co/2016/06/21/breaking-tesla-makes-an-offer-to-acquire-solarcity/"]Source[/URL] This would be a pretty big deal if it happens. Some Tesla stockholders are shitting the bed over it though because SolarCity isn't profitable.

[QUOTE=Morgen;50563401]This would be a pretty big deal if it happens. Some Tesla stockholders are shitting the bed over it though because SolarCity isn't profitable.[/QUOTE] Well it's simple really, Teslas negative profit times SolarCity's negative profit will make a positive profit.

Didn't Elon Musk start solar city as well?

[QUOTE=DanTehMan;50563492]Didn't Elon Musk start solar city as well?[/QUOTE] His cousins, Lyndon and Peter Rive did. Though Elon was basically an "ideas guy" and on the board of directors.

I hope if this goes through then Tesla will apply the same customer service and sales model to SolarCity. SolarCity have been known for some really shitty sales tactics in the past and generally being a bit shit towards customers.

Actually this is pretty smart, even if SolarCity isn't profitable, because of the government subsidies and potential contracts for green/renewable energy. Tesla would be able to acquire, at reduced cost and timeframe, the complete infrastructure for a solar cell manufacturing and distribution network. Along with it, Tesla would benefit from government subsidies and commercial backing from banks and Google. SolarCity also just acquired Silevo, which Tesla will now own. Not to mention SolarCity is slated to complete construction of the largest Photo-voltaic Manufacturing plant in the western hemisphere in New York, which is projected to produce around a gigawatt's worth of panels a year. It should be able to compete with Chinese plants.

That's weird, Solarcity is [B]literally[/B] down the road from Tesla's Fremont plant

[QUOTE=Snoberry Tea;50564068]Actually this is pretty smart, even if SolarCity isn't profitable, because of the government subsidies and potential contracts for green/renewable energy. Tesla would be able to acquire, at reduced cost and timeframe, the complete infrastructure for a solar cell manufacturing and distribution network. Along with it, Tesla would benefit from government subsidies and commercial backing from banks and Google. SolarCity also just acquired Silevo, which Tesla will now own. Not to mention SolarCity is slated to complete construction of the largest Photo-voltaic Manufacturing plant in the western hemisphere in New York, which is projected to produce around a gigawatt's worth of panels a year. It should be able to compete with Chinese plants.[/QUOTE] SolarCity is getting fucked hard by the southwest and basically run out of state in Arizona by SRP

This is fucking awesome, soon the solar panel > battery > car and other electrical appliance cycle will be an American standard

Twist: solar city is bought by space-x to build solar power stations to be launched on falcon heavies bringing clean limitless power to everyone

Twist: Tesla becomes too big and ambitious for its government-issued britches and investors pull out

I was just thinking. I don't know much about Solar Power but would it be possible to create a car where the roof is a solar panel, so that when you're driving you'd be charging your car?

[QUOTE=omarfr;50564528]I was just thinking. I don't know much about Solar Power but would it be possible to create a car where the roof is a solar panel, so that when you're driving you'd be charging your car?[/QUOTE] Possible, however with how efficient solar panels are now you would need to stop and let it recharge from time to time. However, I assume elon musk is already planning to do something like this. It would solve a lot of problems when trying to find power outlits and reduce the amount of time needed to "full recharge".

[QUOTE=JohnFisher89;50564539]Possible, however with how efficient solar panels are now you would need to stop and let it recharge from time to time. However, I assume elon musk is already planning to do something like this. It would solve a lot of problems when trying to find power outlits and reduce the amount of time needed to "full recharge".[/QUOTE] But to think how useful would that be. To go to work and then leave work with a fully or near fully charged battery after your shift. Getting a good (not full) charge from stoping to get groceries or see a movie.

[QUOTE=omarfr;50564528]I was just thinking. I don't know much about Solar Power but would it be possible to create a car where the roof is a solar panel, so that when you're driving you'd be charging your car?[/QUOTE] Yes it's possible and it's done by scientists. There are prototypes that are often tested here in Australia eg [T]https://upload.wikimedia.org/wikipedia/commons/2/28/Solar_Car_Tokai_Challenger.JPG[/T] But they have to be ridiculously lightweight (like less than an F1 car), they don't travel very fast and they only work on sunny days. [editline]22nd June 2016[/editline] I don't think solar power would be sufficient to even recharge a parked typical electric car though.

[QUOTE=Ta16;50564570]But to think how useful would that be. To go to work and then leave work with a fully or near fully charged battery after your shift. Getting a good (not full) charge from stoping to get groceries or see a movie.[/QUOTE] Oh it would be incredably useful assuming you want your car left out under the sun, it gets 50C in the southwest sometimes. While driving it will help a lot, not to mention 18 wheelers can really use this to go for long distances. [editline]22nd June 2016[/editline] [QUOTE=sb27;50564582] I don't think solar power would be sufficient to even recharge a parked typical electric car though.[/QUOTE] I don't think musk would be looking for a fully powered solar car, more as an additive to counter the "gas station problem" and his space missions. My guess is we will probably see some concept of a Tesla car with an integrated solar panel which offers improved battery life. This doesn't mean the car will be self powered but probably boast longer range when in sunlight.

[QUOTE=JohnFisher89;50564605]Oh it would be incredably useful assuming you want your car left out under the sun, it gets 50C in the southwest sometimes. While driving it will help a lot, not to mention 18 wheelers can really use this to go for long distances. [editline]22nd June 2016[/editline] I don't think musk would be looking for a fully powered solar car, more as an additive to counter the "gas station problem" and his space missions. My guess is we will probably see some concept of a Tesla car with an integrated solar panel which offers improved battery life. This doesn't mean the car will be self powered but probably boast longer range when in sunlight.[/QUOTE] by current solar technology, the benefit would be 10-20 miles at most there are far better solar technologies though. nasa use some for their rovers which are multilayered and are far more effective, unfortunately they are absurdly expensive, at times running millions of dollars. Solar has a great future, but seriously needs to better its efficiency and pricepoint.

[QUOTE=da space core;50564683]by current solar technology, the benefit would be 10-20 miles at most there are far better solar technologies though. nasa use some for their rovers which are multilayered and are far more effective, unfortunately they are absurdly expensive, at times running millions of dollars. Solar has a great future, but seriously needs to better its efficiency and pricepoint.[/QUOTE] I completely agree, however given the 8ish hour workday that most Americans have that extra 10-20 miles can mean the world of difference. The biggest thing holding me back from buying a Tesla is the fact that charging the thing requires a good bit of effort for the range given. If Tesla had a model that had a roof as a solar panel for charging I would reconsider it quickily. That said, I think if this deal goes through elon musk will advance it quite a bit more and at a faster pace than competitors.

Fisker Karma had one: [img]http://i.imgur.com/5cPCKGa.jpg[/img] It would be a cool option, but the amount of energy you would get out of it would be a drop in the bucket. Great if you're stranded in Death Valley, not so great to replace charging on trips. You'd also have to give up Teslas sick glass roofs. [editline]21st June 2016[/editline] Musk did get a question about it at the shareholders meeting, but I can't remember what he said and I don't know if theres posted video of it. (plus its like 3 hours long and I'm not gonna sift through that) [editline]21st June 2016[/editline] [quote]Additionally, [url=http://www.autoblog.com/2010/11/21/fisker-karma-solar-roof-production-to-begin-courtesy-of-quantum/]the solar roof of the Karma[/url] one-ups that of the Toyota Prius by not only allowing the solar panels to cool down the interior, but also to lightly charge the battery for an estimated [B]4-5 miles of additional range per week (assuming sunny days).[/B] Even if you only use the Karma for weekend trips, getting energy solely from your car's roof won't move you very far down the road. Still, it's a lot better than nothing.[/quote] And yeah, it was a gimmick. [editline]21st June 2016[/editline] Speak of the devil(from yesterday): [url=http://electrek.co/2016/06/20/toyota-prius-plug-prime-solar-panel/]Toyota Brings Back Solar Roof[/url] [quote]Koji Toyoshima, Toyota’s chief engineer for the Prius plug-in, says that the solar panel will increase car’s efficiency by up to 10 percent. In good conditions,[B] the panel will likely add about 2.2 miles of electric range to the vehicle throughout the day.[/B] Even that seems extremely optimistic as have Toyota’s electric estimates in the past.[/quote]

That's much less than I expected. However, improvements can be made I will be interested to see what Telsa can come up with though.

Since their superchargers use solar energy from SolarCity panels, I wonder if this would let them add them at a faster rate, preparing for the Model 3 launch? I know supercharging isn't included then but I would think it would still be an addon.

[QUOTE=ben1066;50565429]Since their superchargers use solar energy from SolarCity panels, I wonder if this would let them add them at a faster rate, preparing for the Model 3 launch? I know supercharging isn't included then but I would think it would still be an addon.[/QUOTE] not that much, superchargers are still not as fast as gas stations, and that is Telsa's biggest problem.

[QUOTE=JohnFisher89;50565471]not that much, superchargers are still not as fast as gas stations, and that is Telsa's biggest problem.[/QUOTE] Hardly. While individual stays are longer, overall you waste less time refuelling, compared to an ICE car. Most people will only visit a supercharger a few times a year if they like road trips. Otherwise they start every day fully charged, or charge at work, and so don't need to take any time out of their day to refuel, like you would every week or two with an ICE car. And if you do need to occasionally stop to charge, it would often be when you would be stopping for a bathroom break and something to eat anyway, so very little time is actually wasted waiting for the car. Obviously if you're in a job where you're driving 500+km a day, then this wouldn't apply, and you'd likely be better off with an ICE or hybrid instead of full electric.

[QUOTE=ben1066;50565429]Since their superchargers use solar energy from SolarCity panels, I wonder if this would let them add them at a faster rate, preparing for the Model 3 launch? I know supercharging isn't included then but I would think it would still be an addon.[/QUOTE] Very few superchargers are solar powered. Originally that was the plan but it added significant cost and construction time so they ditched it to build the network faster. Solar panels on the roof of the car is very much a gimmick as well. Not worth the cost unless we see significant improvements in panel efficiency. SolarCity have some of the most efficient consumer grade panels and iirc they are only 22% efficient. Supercharger speed isn't really a big issue IMO. They need to build the network out more and make it so when it's busy all cars charge at full speed. Some slight improvements to speed might help but it's just about good enough. If you actually drive an EV a long distance you will realise it's not a big deal. The worst part is when you need to charge to > 80% because your going off the supercharger path, thats the slow bit. If they had enough superchargers so that you never had to do that it wouldn't be an issue since charging to 80% is pretty quick.

Tesla's conference call on the offer: [video=youtube;dm3q5ABMP14]https://www.youtube.com/watch?v=dm3q5ABMP14[/video]