SolarCity (SCTY) announced today that it managed to close $305 million in cash equity financing from Quantum Strategic Partners advised by Soros Fund Management. The deal was reportedly more difficult to close ahead of the merger with Tesla (TLSA). expand full story
Several top institutional holders increased their stake in Tesla (TSLA) over the last quarter, which is particularly significant ahead of the Tesla-SolarCity merger vote. Interestingly, one of the biggest holders of both companies, Fidelity, divested from SolarCity (SCTY) during the second quarter, but increased its stake in Tesla by 25 percent to 20.36 million shares worth $4.4 billion. expand full story
After just over a month of due diligence and negotiations, Tesla (TSLA) and SolarCity (SCTY) are reportedly about to announce a merger agreement, likely on Monday. Interestingly, the agreement is reportedly likely to include a ‘go-shop’ provision to allow SolarCity to request offers from other potential buyers before bringing the offer to a shareholders vote. expand full story
In a new note to client today, Credit Suisse downgraded SolarCity’s (SCTY) stock from ‘Outperform’ to ‘Neutral’ with a price target of $27.00 (from $38.00 previously) based on what it sees as an increased probability of the Tesla’s (TSLA) acquisition deal closing, which it estimates to be ‘grossly undervalued’. expand full story
Following Tesla’s (TSLA) acquisition offer to SolarCity (SCTY) last week, the automaker’s stock price fell sharply, but while the market tumbled after the United Kingdom voted to leave the European Union the next day, the stocks of both companies outperform the market – indicating some resistance.
Now we learn that Wall Street is betting big against the companies as short interest is close to all time high and short sellers are out of shares to borrow. expand full story
While everyone and their mother seem to hate on the acquisition plan, the real question is: do shareholders like it? And maybe more importantly: do institutional shareholders like it? They will be the ones deciding after all. expand full story
Morgan Stanley analyst Adam Jonas has been a long-time bull on Tesla Motors (TSLA). The New York Time called him the ‘Tesla Cheerleader‘, but today the analyst is out with a rare negative note on the automaker following the announcement that the company made an offer to buy SolarCity. expand full story
Since Tesla announced its offer to buy SolarCity, which is still contingent on a vote by the shareholders, Wall Street has turned on the company with analysts issuing notes claiming that there’s little to no value in the deal. Barclays analyst Brian Johnson issued a note saying that he sees “little in the way of synergies and much in the way of cash burn.”
It’s not like Wall Street analysts have the best foresight, Johnson himself is ranked #2,713 out of 3,984 analysts on TipRank with an average return of -0.7%, but they represent the point of view of the financial sector.
As for the point of view from the actual customer offering/product side, a merger between Tesla and SolarCity will certainly open the door for some interesting product integrations and new distribution opportunities. expand full story
During a conference call discussing the rationale surrounding Tesla’s (TSLA) offer to acquire SolarCity (SCTY) this morning, Elon Musk made a bold claim, something not unusual for the billionaire entrepreneur, he said that he sees potential for Tesla to become a trillion-dollar market cap company – which would be a first. expand full story
Today, Tesla (TSLA) announced that it submitted an offer to acquire SolarCity (SCTY), the leading solar installer in the US. Elon Musk is the largest individual shareholder of both companies. Due to his obvious interest in the deal, which is already being called a bailout by some shareholders, Musk decided to recuse himself from the vote at both companies and leave it to Tesla and SolarCity shareholders to decide on the possible consolidation of ‘Musk Industries’. expand full story
SolarCity’s Solar Bond Program is looking more and more like SpaceX’s private investment platform. After market close yesterday, SolarCity revealed in a SEC filling that it expects Elon Musk’s rocket company to buy $90 million of the $105 million in new Solar Bonds issued.
Last year, SpaceX already purchased solar bonds from SolarCity on two separate occasions: another $90 million followed by $75 million. SpaceX’s involvement in SolarCity’s Solar Bond Program is set to total around $255 million, which should help finance a lot of solar installations. expand full story
During the past few months, rooftop solar installer SolarCity has been watching its stock price plummet, along with most of the solar industry. During the past week, Chairman Elon Musk bought 3 blocks of shares between $25.20 and $26.45 to add over 500,000 shares to his now total of 21.3 million shares or about 21% of the company.
Now just a few days after the disclosure of the stock purchase, we learn through a press release from Silver Lake Kraftwerk that Musk invested an additional $10 million in the company through convertible senior notes along with $100 million from Silver Lake and $3 million from SolarCity CEO and Musk’s cousin, Lyndon Rive.
Jim Chanos is a famed billionaire hedge fund manager known for short selling companies. He is also a regular market commentator for CNBC and Bloomberg. Chanos recently disclosed having a short position on solar installer SolarCity (SCTY) and although he refused to disclose his position on Tesla Motors (TSLA), he doesn’t have good things to say about the company.
During an interview with Bloomberg on Monday morning, Chanos explained why he thinks both companies are overvalued, but the “facts” he used to support his opinion are misleading. expand full story
The global stock market had a horrible day. Even Wall Street darlings like Google and Apple saw billions of dollars trimmed off their market capitalizations. A surprising exception, SolarCity, the largest residential solar installer in the US, managed to go against the grain and closed the day with an impressive 7% gain thanks to its Chairman and major shareholder Elon Musk who bought another $5 million worth of shares during the stock’s price fall to add to his holding in the company now worth over $900 million of SolarCity’s total market cap of just over $4 billion. expand full story