Polaris solar PV net news: Tesla’s Board of Directors on August 1, agreed to pay $ 26 billion bought SolarCity. But the proposed merger in addition to being a lot of people described as “SolarCity’s journey of redemption”, and was called “Tesla abandoned final blow.”
Market reaction was not optimistic on the basis of 4 Tesla investors yesterday launched proceedings were overshadowed by the acquisition, there was speculation that might lead to the acquisition was delayed. But musk’s supporters are still very cool at the same time, shareholders from both companies are quietly support him and his decision to make.
The anxiety of the market: acquisition of SolarCity will accelerate the destruction of the Tesla?
Why is Tesla’s acquisition of SolarCity investor be it so sensitive? 4 for simple word: profit. Yes, the two companies not only profit, but has been in the debt-ridden State. 2016 alone up to now, musk’s two listed companies have burned $ 2 billion, but he has repeatedly expressed the need to raise more money to own an electric vehicle market Model3.
Therefore, even the head of the world’s largest short Fund firm Kynikos Associates Jim Chanos is sceptical: “hotbed” can save the musk of the automotive Empire? Or is accelerating its destruction?
According to a provision of a financial indicators show, Tesla and SolarCity combined company has the possibility of 1/5 in three years into bankruptcy and liquidation phases. SolarCity falling share prices and the gap is widening between the purchase price. This fully shows that current market confidence in the deal can be approved is declining. Even a 4 Tesla shareholders this week to the Florida Court filed a lawsuit in China, hoping to undo the deal.
For some radical performance, poor data research analyst AngeloZino is also quite worrying:
“Although the acquisition is a positive signal of SolarCity will be able to raise money with the power of Tesla. However, this deal will make Tesla’s development better than any over the next 12 months? I really find it hard to believe. ”
Mr MASKEY supporters to calm down, big shareholders are overweight Tesla stock
However, musk’s loyal supporters on Wall Street but still expected him to succeed (in this case buy), or be able to raise new funds. One of the most important reasons are: the two companies behind many of the same major shareholders (not to mention anything else, musk I is the largest shareholder of the two companies).
Part Bloomberg analyst think, in this year later when held of vote vote Assembly Shang, SolarCity of shareholders should not against this pen trading, because special Republika pulled provides of acquisition price for each unit 5 dollars (rough calculation), than they currently by holds of shares to worth; and those special Republika pulled supporters are can nodded of reasons also is simple: they believes musk (this reasons to of simple gross). In addition, common shareholders of the two companies ultimately acquiesced, in part because of … … If they didn’t, then they will be SolatCity the “drag” to firmly stuck.
Canada investment-research firm Morningstar analyst Andrew Bischoff believes that if companies continue to remain independent, continuing the “bloodletting” State, the stock price may be from the current US $ 17.23 (Monday) fell to $ 10. In other words, will rapidly lose confidence in the market, then the future is SolarCity will only “bankruptcy” this ending. So, those common shareholders ‘ intentions will become apparent.
Investment banks Dougherty and Co. Charlie Anderson, a senior researcher also shares this view, he said:
“The chances of this deal is very high, most shareholders hold fair attitude to the deal. ”
For investors against a Tesla event had just happened, musk’s supporters seem to disagree. As usual, they think everything is done by the company in exploring development paths for the future. Anderson explains this:
“The vast majority of long-term institutional investors optimistic about Tesla when judging the investment value of a company, always based on the company what changes will take place within the next 5 years. ”
In addition to musk, Tesla ranked 7 out of the top 10 major shareholders who also hold a large stake in SolarCity. If the perspective from major shareholders for the takeover, these 7 common shareholders (including the top VCs, fidelity and BlackRock asset management company of the Group) have recently increased its holdings of Tesla’s stock. For example, Bank of Montreal (6th largest shareholder in Tesla and SolarCity’s 3rd largest shareholder) on September 14 and bought 310,000 shares of Tesla. But no one to comment on this.
Of course, problems in SolarCity, analysts agree: SolarCity management must be focused on “how to stop the bleeding,” above, rather than looking for “how to expand the installation of solar equipment business” approach.
Original title: encounter 4 How can investors Sue, Tesla’s big shareholders still support Mr MASKEY