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Wall Street on Elon Musk

To Elon Musk, Tesla’s $3 billion deal to take over SolarCity seems obvious. In his Tuesday conference call explaining the all-stock proposal, Musk used the word “obvious” or “obviously” a total of 25 times. But the deal is far from obvious to anyone who’s not the largest shareholder of both companies, CEO of Tesla and chairman […]

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Mr. Musk’s logic and assumptions are deeply flawed about SolarCity and Tesla

Summary We use Tesla’s SolarCity acquisition conference call language to show why Mr. Musk’s logic and assumptions are deeply flawed. We believe the transaction has negative synergies and SolarCity’s costs are likely to increase. SolarCity is not only unsuited to Tesla but there is inherent conflict of interest between the companies when it comes to […]

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