Tesla Motors is unlikely to merge SolarCity because of red tape.
7/7/16 5:00 am chumakdenis 1
Not so long time ago there was a lot of ballyhoo regarding Tesla Motors and SolarCity – fat cats from Wall Street with their knee-jerk reaction have clearly showed us that we are far away from the bright future.
Tesla’s acquisition of SolarCity has caused so many ‘sick’ reactions that we were literally shocked.
However, is it something new for us?
Of course, the answer is no.
There are lots of idiots that think that electric vehicles are dangerous for us.
According to them, EVs are dirty, unstable and we’d better use gasoline-powered cars since American economy is tied on oil – yeah…red necks are everywhere.
That’s the thing that we have to accept and take for granted – if our society would be a little bit smarter, people like Donald Trump would never manage to run for president.
However, that’s just our imagination: people like Donnie will always be in there.
So, let’s bite the bullet and come back to cruel reality…a place where people care more about selfie-sticks than global warming problems.
Anyway, we are getting a little bit off-topic.
Plus, the reality is not as murky as it might sound since there are always silver linings.
So, what’s ours?
Gospel from Elon
Not so long time ago Elon posted some information regarding it in his blog and according to it*drum roll* - he has no intention of giving up.
Here’s what’s written in there:
“Tesla’s mission has always been tied to sustainability. We seek to accelerate the world’s transition to sustainable transportation by offering increasingly affordable electric vehicles. And in March 2015, we launched Tesla Energy, which through the Powerwall and Powerpack allow homeowners, business owners and utilities to benefit from renewable energy storage."
"It’s now time to complete the picture. 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."
"The SolarCity team has built its company into the clear solar industry leader in the residential, commercial and industrial markets, with significant scale and growing customer penetration. They have made it easy for customers to switch to clean energy while still providing the best customer experience. We’ve seen this all firsthand through our partnership with SolarCity on a variety of use cases, including those where SolarCity uses Tesla battery packs as part of its solar projects."
"So, we’re excited to announce that Tesla today has made an offer to acquire SolarCity. A copy of Tesla’s offer is provided below."
"If completed, we believe that a combination of Tesla and SolarCity would provide significant benefits to our shareholders, customers, and employees:
- We would be the world’s only vertically integrated energy company offering end-to-end clean energy products to our customers. This would start with the car that you drive and the energy that you use to charge it, and would extend to how everything else in your home or business is powered. With your Model S, Model X, or Model 3, your solar panel system, and your Powerwall all in place, you would be able to deploy and consume energy in the most efficient and sustainable way possible, lowering your costs and minimizing your dependence on fossil fuels and the grid.
- We would be able to expand our addressable market further than either company could do separately. Because of the shared ideals of the companies and our customers, those who are interested in buying Tesla vehicles or Powerwalls are naturally interested in going solar, and the reverse is true as well. When brought together by the high foot traffic that is drawn to Tesla’s stores, everyone should benefit.
- We would be able to maximize and build on the core competencies of each company.
Tesla’s experience in design, engineering, and manufacturing should help continue to advance solar panel technology, including by making solar panels add to the look of your home. Similarly, SolarCity’s wide network of sales and distribution channels and expertise in offering customer-friendly financing products would significantly benefit Tesla and its customers.
- We would be able to provide the best possible installation service for all of our clean energy products. SolarCity is the best at installing solar panel systems, and that expertise translates seamlessly to the installation of Powerwalls and charging systems for Tesla vehicles.
- Culturally, this is a great fit. Both companies are driven by a mission of sustainability, innovation, and overcoming any challenges that stand in the way of progress.”
In the end, Elon added even more fuel to the fire by writing following:
“Today’s offer to acquire SolarCity is only the first step toward a successful combination of Tesla and SolarCity. We will provide a further update if and when an agreement is reached.”
Well, it seems that it is just beginning of the new bright era.
Let’s wish Elon good luck and hope that everything will go as smoothly as it is only possible.
Interesting fact: initially on the announcement Tuesday night, shares of Tesla traded off some $26 (-12%) in extended-hours trading, while Solar City moved up about $3.90 or about 18.5% higher. Sentiment in TSLA rebounded somewhat overnight and after this Musk’s conference call in the early AM, opening Wednesday’s session off about $18.50 (-8.5%).