SoylentNews is people
SoylentNews
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: 5, Interesting) by frojack on Wednesday June 22 2016, @05:20PM
One of the players BEING a car company I'm having trouble coming up with a good automobile analogy.
The one that is a car company is also a huge battery company (or will be shortly).
Now THAT makes sense. Forget that grid inter-tie and just go self storage, and charge your car all in the same package. In fact just charging your electric drive car would probably be reason enough to install solar when you buy a Tesla automobile.
The stock is taking a hit because nobody can see where the money is going to come from in the short term, and Tesla is going to issue stock to accomplish this buy out. Issuing stock depreciates the value of stock held by current share holders.
The market seldom fails to notice this.
No, you are mistaken. I've always had this sig.