Elon Musk is the futurist billionaire playboy behind the world's sexiest electric car company, Tesla.
Elon Musk is the futurist billionaire playboy behind the world's sexiest solar power installation company, Solar City.
Elon Musk's Tesla Motors Inc said on Tuesday it has made an offer to acquire solar panel maker SolarCity Corp in an all-stock deal worth as much as $2.8 billion, as the electric car maker looks to get into the market for sustainable energy for homes and businesses.
Musk, who is also the chairman and principal shareholder of SolarCity, described the deal as "no brainer" in a call with reporters.
A "no brainer" indeed! Elon Musk has a great relationship with Elon Musk and they see synergies in this deal. According to the Hive, Tesla Elon Musk is quite psyched about the opportunity to grab up Elon Musk's SolarCity...
For Musk, solar is a key part of Tesla’s clean-energy vision. “Tesla customers can drive clean cars and they can use our battery packs to help consume energy more efficiently, but they still need access to the most sustainable energy source that’s available: the sun,” Tesla said in a statement regarding the deal.
But like any acquisition target, SolarCity Elon Musk is keeping his head on a swivel.
SolarCity, meanwhile, would benefit by operating under the Tesla name. Musk called the deal a “no-brainer,” and for now, all seems to be proceeding cordially: in its letter to SolarCity, Tesla said its intent was to pursue the deal “only on a friendly basis.”
Elon Musk wants Elon Musk to know that he can trust Elon Musk.
But one person that doesn't trust Elon Musk right now is Jim Chanos. Big Jim took to the airwaves of CNBC to "share his thoughts" on the notion of a Tesla/SolarCity merger...
High-profile investment manager Jim Chanos blasted Tesla Motors' proposed acquisition of SolarCity on Wednesday, telling CNBC that the "brazen Tesla bail-out of SolarCity" is a "shameful example of corporate governance at its worst."
Enough with the subtlety, Chanos! Give it to us straight!...
"SolarCity, whose bonds were yielding 20% yesterday, is a company headed toward financial distress.It is burning hundreds of millions in cash every quarter, a burden that now Tesla shareholders will have to bear, at a total cost of over $8 billion," Chanos said.
"And if you don't want to believe me, consider this: The combined market drop in the value of both companies is more than the equity value of the deal itself-which means that Tesla shareholders think SolarCity shares are essentially worthless. Finally, it is hard for me to believe that this deal was not being contemplated when Tesla, and Mr. Musk himself, sold shares just a few weeks ago."
We just hope that this isn't the kind of thing that's going to make it hard for Elon Musk to fully get on board with the idea of working with Elon Musk. After all, one of them stands to make about $700 million on the deal.