[dZired]

Tesla Motors has made an offer worth Rs. 23,500 crore to buy SolarCity, an American company that deals in solar power systems for houses and industries. Tesla, in an official statement, has suggested that SolarCity's technology can be used to supply energy to its fleet of electric cars.

Interestingly, Elon Musk, who is the founder and CEO of Tesla Motors, was a co-founder of SolarCity, which is now under the reigns of his cousin. Musk is also the largest shareholder of both companies, and is currently designated as the Chairman of the SolarCity board. Moreover, Tesla supplies battery packs for the solar systems employed by SolarCity. Keeping in mind this close relation between the two companies, market experts suggest that a deal will be signed soon.

The proposal from Tesla involves a stock-swap deal under which, Tesla will exchange all outstanding shares of the common stock of SolarCity, by Tesla common shares. As a result, Tesla is offering a 21 to 30 percent hike on each share of SolarCity. In monetary terms, this deal is being valued at £2.4 billion, which translates to around Rs. 23,623 crore.

If the above deal does see the light in the near future, it will make Tesla the only vertically integrated energy company in the world to offer end-to-end solar power solutions. These would include solar systems at your home or office, electric cars, and a solar system to supply power to charge the electric car.

SolarCity is currently under a debt of $3 billion, while the most recent earning reports claim that the company isn't profitable either. But SolarCity officials claim that they would start making profits from the end of this year.

Link to Team-BHP News

[rrsteer]

What an example of disruption and disintegration of traditional value chains and industry structures. No longer just a car company or an energy company but a company that serves to change energy into work for its customers.

[sgiitk]

The figure looks much more impressive when converted to ₹₹. Even the $ figure is impressive. There are some people questioning the motive. I think I will trust Elon Musk on this.

[D33-PAC]

What a serious conflict of interest . What the heck are the independent directors on the board doing ?

Solar City isn't even money making.

This guy Elon Musk reminds me of Satyam Ramalinga Raju.

[volkman10]

Tesla Planning Electric Public Transport And Semis In Second Master Plan.

Some 10 years after releasing Part One of the Tesla Master Plan, Elon Musk has released 'Part Deux', which will see the American firm venture into a host of new markets.
In part One it was all about cars. With all of those ticked off, it's time for the next step in Tesla's history.

Alongside the marque's consumer vehicles, it will create all-electric heavy-duty trucks and “high passenger-density urban transport”. Both of these solutions should be presented next year with the Tesla Semi intending on slashing the cost of cargo transportation.
Tesla also intends to lead the market in autonomous driving technology. Musk believes that receiving worldwide regulatory approval for completely autonomous vehicles will require up to 6 billion miles of testing.

Additionally, Tesla will rapidly expand its solar panel business and begin offering a ride sharing service for Tesla owners allowing their car's to be hired out and used to automatically drive people around, essentially earning owners free money.

Unlike the first part of the Master Plan, all elements of the second stage are being developed and tested simultaneously.

Link

[reverse_gear]

A lot of people have lost patience with Elon Musk and his grandiose visions. Of course, his company is still quite richly valued and seems to be a darling of the stock market, but the hype surrounding everything Tesla is being questioned quite aggressively. Just read this article in Bloomberg which juxtaposes the hype surrounding Tesla against the quietly efficient BYD in a very calculated manner.

Bloomberg article - Tesla/BYD