Expansion / promises so close to an election have to be bold and credible in order to have impact. It is not clear if the inquiry end of Elon Musk to the electorate on Tuesday met those requirements.
Always there was a skepticism that is understandable to that Tesla, manufacturer of electric cars that is hungry for capital and property in 21% of Musk, acquired SolarCity, the manufacturer of solar panels, also participated in a 22% by Musk and run by his cousin.
In his favour, and perhaps to avoid lawsuits, Musk leaves the decision in the hands of investors uninterested in both companies, that will cast their vote on November 17. The first vote, according to Musk, are “overwhelmingly favorable.”
In any case, made a last appeal to undecided voters, vaticinando that SolarCity would provide more than $ 500 million of liquidity to Tesla in three years.
This does not change the logic stated in the agreement: that the people who buy electric cars will also want to purchase solar panels and batteries at the same time.
Does it provide more motivation to the shareholders of SolarCity. Due to the falling stock price of Tesla, the deal 0.11 titles of Tesla for every one of SolarCity gives the company a valuation of close to 20,79 $ action, below the level that was priced at SolarCity before the close approach in June. The premium, established in his time in the 21-30%, has evaporated.
But SolarCity does not thrive, and the shareholders of Tesla should be the most reluctant. In the last 12 months, SolarCity has registered a negative cash flow of nearly 1,000 million dollars. Prior to the offer June, the shares of SolarCity had fallen more than 60% in six months. The fiscal aid to the solar panels are expiring. The pace of installations has slowed down. And although Musk said on Tuesday that there was “zero chance” of that quebrase, has intervened by buying bonds of the company.
The own Tesla consumes a lot of money, approaching a positive cash flow the last quarter, much later than its target. Add another drain would be dangerous.
To their favor, SolarCity is getting more customers go to rent the panels to buy them, often with the help of loans. Given that SolarCity already sold part of the rental payments from customers to investors, there is a transformation in cash flow, but it should help. This gives somewhat more credit to the manifesto of Musk, but, like so many other times, it asks for a leap of faith.
SPAIN: Tesla-SolarCity: purchase of votes
With Information Expansión
http://entornointeligente.com/articulo/9188727/ESPANA-TeslaSolarCity-compra-de-votos
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