SolarCity's solar panels with Tesla's electric vehicles and stationary storage batteries was "what the world needs, the ultimate solution" to a sustainable-energy future.
"As a combined automotive and power storage and power generation company, the potential is there for Tesla to be a trillion-dollar market cap company," [Musk] added. [...]
Musk said costs for both companies would go down significantly after the merger, but he did not give specifics.
— reuters.com
Elon Musk already sits on the board and owns 22% of the Buffalo-based SolarCity, "the leading installer of residential solar panels" in the US. Musk is convinced that the merger is a no-brainer, but according to Reuters, analysts aren't so smitten with the prospect.
"While we don't doubt that some customers who are interested in electric vehicles and storage products are also interested in going solar, we don't necessarily buy that there is a meaningful cross-sell opportunity – especially currently," RBC Capital Markets analyst Joseph Spak told Reuters.
Another analyst, Brian Johnson of Barclays, doesn't have a rosy view either: "While no doubt the Tesla bulls will hail the combination as visionary, we believe the assumption of another $2.6 billion of debt to fold in a solar company with limited synergies and uncertain growth/cash prospects only reinforces our negative view of Tesla."
A press release issued by the Tesla Team yesterday noted how partnering with SolarCity would produce "the world's only vertically integrated energy company," that could "expand our addressable market further than either company could do separately," and "provide the best possible installation service for all of our clean energy products."
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1 Comment
I think musk musk musk. Prob not $1T, more like $987654321000.63.
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