from the buffalo-buffalo-buffalo-buffalo-buffalo-buffalo-buffalo-buffalo-buffalo-buffalo-times-one-billion dept.
The USA Today and Reuters report that Tesla Motors and Panasonic announced their intention to open a factory in Buffalo, New York. Photovoltaic cells, and modules containing them, would be made there. Production might begin in 2017.
The two firms signed a non-binding letter of intent to make the cells for Tesla's stationary power storage units, the Powerwall and Powerpack.
The companies are already collaborating in the production of storage cells for rechargeable batteries.
previously:
- Tesla Soars on Financials and Ratings
- Elon Musk's Tesla Offers to Buy Elon Musk's SolarCity, Shares Tumble
- Tesla and SolarCity Reach Agreement to Combine
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frojack writes:
"Tesla stock soared today, up over 17% at one point, on solid earnings reports, and also due to achieving the highest recommendation of all cars from Consumer Reports (Note, not linking direct to paywalled CR site). In addition, Tesla Motors Inc. is expected to make a big announcement regarding its 'gigafactory' battery plant this week. Tesla is rumored to be partnering with Japan's Panasonic Corp. or South Korea's Samsung Electronics Co. Ltd. The location of the factory is also yet to be determined, although analysts have bet on New Mexico or Arizona. One thing is sure: 'Tesla hopes to reinvent battery production like it already did to other parts of the auto supply chain,' one Wall Street analyst said.
Within the next few weeks, CEO Elon Musk will go to China to deliver the country's first Model S according to CNBC."
Investors and finanical analysts have been baffled by a $2.86 billion bid by electric car manufacturer Tesla to acquire SolarCity:
Musk, the largest shareholder of both companies, said he and Antonio Gracias, who is also a member of both boards, will recuse themselves from voting on the takeover offer. The all-stock deal is worth $26.50 to $28.50 for each SolarCity share, Tesla said. That calculates to a premium of as much as 35 percent from Tuesday's closing price. The average 12-month price target among analysts surveyed by Bloomberg is $29.82. "In my personal opinion, this is obviously something that should happen," Musk, who is chief executive officer of Tesla and chairman of SolarCity, said in a conference call. "It's a no-brainer." With 100.2 million SolarCity shares outstanding, the offer is worth as much as $2.86 billion.
[...] Tesla fell as much as 12 percent in extended trading while SolarCity rose as much as 29 percent.
As will no doubt be reported everywhere shortly, Tesla and SolarCity have reached a deal for Tesla to buy SolarCity. The Wall Street Journal says, "The all-stock deal values SolarCity at about $2.6 billion, with SolarCity stockholders receiving 0.11 share of Tesla for each share of SolarCity, valuing them at $25.83 apiece, according to Friday's closing prices. The deal's value comes in lower than the original range of $26.50 to $28.50 per share Tesla had proposed in June. Mr. Musk said Monday he wasn't involved in talks about the valuation of the purchase."
Electric vehicle maker Tesla expects to achieve "significant" cost savings and "dramatic improvements" in manufacturing efficiency as a result of the acquisition of solar panel installer SolarCity, Tesla Chief Executive Officer Elon Musk said on Monday.
Musk said the combined companies will have a "stronger balance sheet," but likely will require a "small equity capital raise" next year. Both companies have been burning through cash and have projected achieving positive cash flow later this year.
Musk is the largest shareholder in both companies and is chairman of SolarCity. His cousins Lyndon Rive and Peter Rive are co-founders of SolarCity.
Source: Reuters
Additional reporting here and here.
(Score: 2, Funny) by butthurt on Tuesday October 18 2016, @06:47AM
I had hoped this could be "from the Buffalo-buffalo-Buffalo-buffalo-buffalo-buffalo-Buffalo-buffalo dept."
(Score: 2) by takyon on Tuesday October 18 2016, @07:20AM
there, happy?
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: -1, Troll) by Anonymous Coward on Tuesday October 18 2016, @07:32AM
No. I won't be happy until someone mentions Elong Musky's long dong. Big like buffalo, long like snake.
(Score: 3, Informative) by takyon on Tuesday October 18 2016, @07:30AM
https://en.wikipedia.org/wiki/Buffalo_buffalo_Buffalo_buffalo_buffalo_buffalo_Buffalo_buffalo#Usage [wikipedia.org]
And of course, you know all about the gigafactory trend...
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: 1, Informative) by Anonymous Coward on Tuesday October 18 2016, @11:34AM
The large Solar City photovoltaic plant outside Buffalo is nearing completion now, we see updates in the local news quite often. NY State built the building and is also paying at least part of the cost for the manufacturing equipment. It's a real sweetheart deal, come and make solar cells in this factory that we (NYS) will give you.
On the other hand, the site was originally a large steel plant that closed down around 1970 and has not been used for much of anything since then. The initial part of the construction was remediating the huge "brownfield" site, it's unlikely that any company would have paid for this work--if the state didn't do it, the site would still be dirty and unused. This will put it back on the tax rolls (but almost certainly with an initial tax break).
Oh, and if you haven't been paying attention, Solar City (run by a Musk family member) is merging with Tesla...maybe:
http://www.streetinsider.com/Mergers+and+Acquisitions/SolarCity+%28SCTY%29Tesla+%28TSLA%29+Merger+Spread+Blows-Out+Ahead+of+Shareholder+Vote/12032090.html [streetinsider.com]
(Score: 2) by Entropy on Tuesday October 18 2016, @07:47PM
I was wondering why anyone would possibly choose new york to manufacture anything....but I suppose if NYC pays for the tools then that would do it lol.
(Score: 2) by bob_super on Tuesday October 18 2016, @04:50PM
For most of the year, they can refine low-light and thru-snow performance, but will have to ship the panels to the Gigafactory to find out max or hot efficiency.
(Score: 2, Informative) by Anonymous Coward on Wednesday October 19 2016, @12:25AM
If you check actual climate data you will find that Buffalo has a very high percent of sunshine in the summer (limited cloud cover). Some years back, a downtown park with a nice lake was chosen for the finals of a solar-powered boat competition (college students) for just this reason--very high probability of sunny days.
Most of the winter snow that makes the national news is not actually in metro Buffalo -- there is a line of hills south of the city that catch most of the lake effect storms off Lake Erie...and have some nice skiing. Of course every now and then the winter wind is from the SW along the lake and the metro area gets whomped -- all part of the fun of living here. If you don't like the winter weather, wait 20 minutes.