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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.
(Score: 2) by ikanreed on Wednesday June 22 2016, @03:12PM
Ah, the startup "invest every penny you see until you implode" strategy.
(Score: 5, Insightful) by Dunbal on Wednesday June 22 2016, @04:10PM
Every single person who has bet against Tesla to date has lost money. While past performance is no guarantee of future success, just be careful when listening to the media clowns who swear that THIS TIME Tesla is going to go bust.
(Score: 2) by n1 on Wednesday June 22 2016, @08:09PM
Depends how long you are on TSLA and how much you trust Musk, for those that shorted a year ago, I doubt they're regretting that decision.
(Score: 2) by Dunbal on Wednesday June 22 2016, @10:18PM
Hindsght is 20/20. Are you talking about the guy who shorted last year at $280 in July, or the guy still sitting on his short at $185 in March? TSLA has swung up and down. If you want to day/swing trade go ahead. But if you want a "safe" bet you won't get it even with shorting TSLA. Go ahead and short it today and let me know when you get your margin call next month...
(Score: 0) by Anonymous Coward on Thursday June 23 2016, @03:34AM
Surely you understand that you are moving the goal posts?
You'd be better off just admitting that you were employing hyperbole rather than being literal.
Because now you look defensive and weak.
(Score: 2) by Dunbal on Thursday June 23 2016, @06:25PM
I really don't care how I look. I've traded enough to know it's incredibly easy to look wise about the stock market when you've got no money on the table. TSLA is and has been extremely volatile. Money CAN be made in both directions. The reverse is true - money can be lost in both directions too. But my point is the stock is far from imploding like many suggest.