Tesla Motors + SolarCity, what are investors and analysts missing?
Tesla Motors announced yesterday, via a blog post, an offer it made to acquire SolarCity. The announcement wasn’t well received by investors and Tesla’s stock (TSLA) has plunged more than 10%. The vast majority of headlines were very negative and filled with arguments as to why the merger is such a bad move. What these posts seemed to fail to consider is what SolarCity can become, there was only criticism that assumed SolarCity would remain the same (and, yes, many of those arguments seemed valid, but others were just sensationalism)
When has Elon Musk left things unchanged? If we just think about what he did with those rockets, those cars, those batteries (the Powerwall), the question is: What can he do with the rest of the system? I can think of many things that would make photovoltaic systems significantly more appealing to consumers, simpler to monitor and understand, making them cool.
Just think of those fancy looking Supercharger Stations and having a home version of those, charging your vehicle, but also providing electricity to your house, all of this possible at no extra cost to the consumer (if it is that SolarCity’s current business model is kept in place). That’s just a thought, but I’m not Elon Musk and I have to say that every few months I’m blown away by some announcement he makes. I can only welcome the merger and look forward for what it is in store.
Disclaimer: I own Tesla shares, and I just doubled down today after the announcement!