The problem for Tesla, and anyone who bid up its stock Tuesday afternoon, is that it has already pushed investors’ horizons out so far, in the interest of raising more capital, that even going beyond “ludicrous speed” on its flagship car doesn’t get pulses racing. If your CEO has spent months and months talking about a new mass-market vehicle, home batteries, buying SolarCity, electric trucks and robo-taxis, then cutting that zero-to-60 lag by 3 tenths of a second seems rather humdrum.Read more "Tesla has faster cars, but we were promised Jetpacks"
Neither company has yet become fully profitable, and the share prices for both companies trended downward in today’s trading. This week, Musk and other SolarCity executives reported that they purchased tens of millions of dollars worth of bonds issued by the company – a move that CNBC said stirred concerns among some industry observers.Read more "Feds approve $2.6 billion Tesla-SolarCity merger, but stock market says ‘meh’"
In usual Musk fashion another project has been delayed.
Musk had always promised to get his rocket up for all to see, but the plan was delayed In because the factory is so close to Hawthorne Municipal Airport and the FAA was worried about the flight risk. It will join the company’s first Dragon capsule to make it back to earth on permanent display, although that hardware is stored inside the facility.Read more "Gaze in awe at Elon Musk’s historic 156-foot erection"
In short, SolarCity shareholders know what they’re getting with this merger — an unexpected bailout. Tesla shareholders are not so fortunate, and SolarCity’s bad balance sheet may be the least of what they have to deal with.Read more "Are Tesla Investors Getting A Raw Deal In SolarCity Merger?"
- Tesla possibly transitioning to 503(c)(3) organization by asking for $135K “donations” to fund its next project.
- Being a charity might be a good fit as it continually needs cash and is already “tax exempt” in that it may never pay taxes.
- The champion of sustainability has accelerated Ludicrous mode for those who can pay the price.
- In a ludicrous twist, begging for orders probably confirms that the company will be going from 2.5 (billion) to zero (cash) more quickly than anyone anticipated.
- Meanwhile…in the real world, Bosch, Mobileye, and Delphi are doing much more interesting things.
Elon Musk’s purchase of $65 million of SolarCity debt is highly unusual and does not send a good signal to investors, says a corporate governance scholar.Read more "Elon Musk’s, Rives’ SolarCity bond purchases are ‘very odd’"
SolarCity will soon have fewer employees to carry out chairman Elon Musk’s clean-energy dreams for the California solar installer. SolarCity cofounders Lyndon and Peter Rive this week announced a “realignment” that will involve laying off an unspecified number of workers by the end of this year, according to an Aug. 17 regulatory filing.
Read more "SolarCity to Lay off Hundreds of Workers"