Tesla SolarCity merger is approved but musk to face two major challenges

Polaris solar PV net news: Tesla company and SolarCity shareholders to vote formally adopted after the merger of the two companies. The merger’s value at $2.1 billion. After the merger, SolarCity’s main work will be led by ailongmasikelai. Earlier, Tesla has announced that they will introduce a new, intelligent solar roofs, and these technologies from SolarCity.

The funny thing is, the deal received shareholder support, also has been criticized by shareholders, even the two main shareholders proxy advisory firms are also divided. Tesla said in September, early in the month, at least four lawsuits have been filed in a Delaware Court to object to the deal, mainly accused of Tesla in violation of fiduciary duty.

Musk my Twitter handle this issue, and thank the shareholders for their trust.

Idea is good, but the reality is cruel

When the news was released, Tesla officials also described the future plans of both companies:

Subsidiary of Tesla and Powerwall battery electric vehicles are expected to technical integration and SolarCity, a solar panel, musk intends to turn these technologies into an “integrated product”.

Tesla predicted that SolarCity will within a year for the combined company about $1 billion in revenues over the next three years, Tesla will be an additional $500 million in cash flow. Analysis also said that Tesla’s retail network combination and SolarCity installed production capacity will bring the company $150 million in just one year of merger benefits.

Can be said that in the past few years, the technology giant Elon ˙ musk by tax concessions, donations and loans received generous support from the Federal Government. Without these funds, and consequently unable to build electric cars and solar energy “green Empire”.

But it may face a great deal of variables: Trump, soon to be the new United States President, and he believes climate change is China made up hoax. As you can imagine, to musk as a representative of climate change advocates the days ahead may be difficult. Especially for SolarCity, Trump will the Government continue to solar tax policy has become a huge potential risks.

Acquisition, in fact, forced rescue

Frank said Mr MASKEY insisted on Tesla’s acquisition of SolarCity is essentially wants to rescue the debt-ridden company under his name. SolarCity is facing severe financial problems have been in one or two days, and the root causes of this phenomenon is that the business model of the company: SolarCity with a user signed a long-term lease agreement for the free solar panels. As a result, SolarCity require huge upfront costs, which lead to since the company’s inception, only $1.5 billion, has amassed more than 3 billion dollars of debt.

In addition, in recent years solar panel prices continue to fall, more users begin to consider directly buying solar panels, rather than SolarCity leases. In response to this market change, SolarCity acquired Silevo in 2014. Silevo is a Silicon Valley company, which produces solar panels look stylish, and photoelectric conversion efficiency is high. SolarCity hopes to Silevo technology can increase its solar business advantage. But if it can’t keep up, the plan could reverse drag.

Precisely because of the SolarCity can’t make money in a very long time, and the embarrassing situation would continue indefinitely, almost all outsiders are not optimistic about Tesla, SolarCity’s takeover.

By contrast, Tesla, present themselves in debt, lost $2.5 billion in the past five years, you know the situation worse than SolarCity. Model3 stuxnet Gigafactory’s construction and completion of Nevada, Tesla will begin a new round of money-burning mode. Acquisition of SolarCity and Tesla wanted to as scheduled, then it also needs to raise $3 billion to $4 billion, invisible will further increase the burden on Tesla.

Climate change, Tesla road full of thorns

United States new President Trump came to power, Tesla is expanding the biggest destabilizing factor in the new energy. Worked for Trump blame China for climate change conspiracy, his new energy and green economy of the new deal after the merger the new company are not to be more friendly, and he may also consider cutting the Federal Government tax subsidies for electric vehicles.

Although Trump also showed no obvious constraints for new energy, but people with discerning eyes can see that Trump prefers traditional energy sources.

So, bought SolarCity’s first needs to solve is the Tesla, SolarCity’s hefty losses.

But while Trump’s victory likely will bring obstacles to the development of the Tesla, but has always been known for its strong sense of horse gram, is not so easy to give up. After all, new energy development is the trend, this situation certainly does not trump policy is reversed.

Original title: Tesla, SolarCity merger is approved but musk to face two major challenges

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