As a resident of Silicon Valley, I am deeply embarrassed to admit this, but here I go: I am not dazzled by Elon Musk. (Pause, while Silicon Valley gasps in appalled surprise.) I know how much he’s accomplished. Starting a new car company from scratch was an enormous undertaking, and the Tesla—the official pace car […]Read more "Why I’m Not Dazzled by Elon Musk"
It’s a proposal that would unite two companies on shaky financial ground as they plow into relatively new markets. One makes electric cars, the other installs solar panels. There are few obvious synergies. Perhaps even more puzzling are the motives of Elon Musk [pictured above], a polarizing billionaire who is the chairman and largest shareholder […]Read more "The Tesla-SolarCity Love Affair Is Crumbling"
It will make it harder for shareholders to sue to block the deal. Tesla’s offer to buy SolarCity SCTY -0.36% sparked a barrage of criticism on Wednesday over the glaring conflict of interest between the two companies: Elon Musk, the CEO of Tesla TSLA 1.57% , is also the chairman of SolarCity and the largest […]Read more "Tesla Quietly Changed Its Bylaws to Ward Off SolarCity Shareholder Fight"
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 […]Read more "Wall Street on Elon Musk"
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 […]Read more "Mr. Musk’s logic and assumptions are deeply flawed about SolarCity and Tesla"