At 4 pm on November 17th, the East Coast time, Tesla and SolarCity gathered together to vote on the latter's mergers and acquisitions. In the end, up to 85% of the shareholders supported the placard, and Tesla successfully took SolarCity into the bag.
Because they are shareholders of the two companies at the same time, in order to avoid suspicion, Elon Musk did not participate in this voting.
The merger was revealed in June of this year. At that time, the Tesla board of directors submitted the offer to SolarCity co-founder and CEO Lyndon Rive, according to the Tesla share price calculation before the transaction, the proposed price 28 One hundred million U.S. dollars. Soon, SolarCity established a special committee of the board of directors to evaluate the acquisition. On August 1 this year, Tesla officially announced the acquisition offer for SolarCity, the purchase price was fixed at 2.6 billion US dollars, although the transaction was approved by the US Federal Trade Commission (FTC), but many shareholders of Tesla He did not buy it, and believed that Tesla should add two independent directors on the board of directors and decentralize the CEO and the chairman of the board to break the Musk “dictatorshipâ€. In this way, the deal has been dragged on to the present.
Left hand Tesla, right hand SolarCity
In the end, Musk won the all-round victory of the tug-of-war, and did not repeat the mistake of “Dong Mingzhu’s failure to acquire Yinlongâ€.
Founded in October 2008, SolarCity is headquartered in Foster City, Calif., and is the number one commercial solar panel supplier in the United States. Its business is divided into three main categories: PV system installation and sales, PV leasing and PPA (Energy Purchasing Contract), and Energy efficiency improvement (energy saving) service. Co-founded by Em Musk and his cousin Lyndon Rive, Musk is currently the chairman of the company.
Tesla does not have to say that it is now Silicon Valley's hot electric car manufacturing company and is also a work that Musk is proud of. This successful acquisition of SolarCity, plus the running SpaceX, his three dreams (electric vehicles, clean energy and Mars exploration) finally returned to the stars.
In the future, how to promote the chemical reaction between Tesla and SolarCity has become a question that Musk needs to think about. Whether the acquisition of SolarCity can help Tesla transform into a vertically integrated energy company that provides end-to-end clean energy products to customers, including solar panels, household energy storage equipment and electric vehicles, will take time to prove.
In fact, the current operating conditions of the two companies are not optimistic, which is why many analysts and commentators are not optimistic about the acquisition. At the same time, every time there is news of the relevant acquisition, Tesla's share price will be seriously injured.
Some analysts believe that Tesla wants to acquire SolarCity because the latter has encountered serious financial problems. Musk, the founder and shareholder, did not want to see SolarCity fall down, so that he could save the house by integrating resources. the company.
SolarCity is also in the midst of a financial crisis. The company has signed a long-term contract with users to install solar panels for free. In this business model, SolarCity requires huge upfront costs. Since the company's inception, only $1.5 billion in revenue has generated more than $3 billion in debt and is losing money every day. The company is also constantly operating through bonds and financing.
On the other hand, Tesla's financial situation is not much better, just fifty steps and a hundred steps.
According to public information, Tesla lost about $2.5 billion in the past five years, even more than SolarCity's losses. On the surface, the glamorous electric car is sold, and the profit is actually difficult to produce. This summer, Musk begged company employees to cut costs as much as possible. Because with the completion of Model 3 and the construction of Nevada's super factory Gigafactory, Tesla is about to open a new round of money-burning mode. Moreover, the company is also developing heavy-duty electric trucks and small electric buses.
At present, Tesla belongs to the state where the mud bodhisattva crosses the river and is difficult to protect itself. The combination of the two looks like "holding the group to warm up."
Tesla has been overly optimistic, saying earlier that the merger will increase its cash flow by more than $500 million over the next three years and will increase its revenue by more than $1 billion by 2017. As a result, Tesla's share price plummeted and SolarCity's share price fell.
Musk, which just released the "solar tile" last month, has much imagination to make the chemical reaction between Tesla and SolarCity, no one can describe it.
The merger will be completed in the next few days and SolarCity will remain operational as a division of Tesla.
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