Elon Buys Own Company.

Old marketing saying: "...take the money...and run!"

this spells out the numbers. Elon should stick to crash landing rockets

http://finance.yahoo.com/news/jim-chanos-shreds-shameful-tesla-161941370.html

The tesla can float like a boat, but the stock can sink like a rock....

Yeah, NPR spot was discussing the same thing early this morning, about how with both companies bleeding cash, he is going to have a harder time getting the backers to put forth more cash for debt service.

Down goes Frasier! Dodge is still the greatest!

He should stick to the music...
Can't beat Goodbye Yellow Brick Road
Del

This will provide Tesla with bulwark votes against any hostile takeover - in 2 ways.

1.The total share float will increase by the volume of shares tendered for the take amicable over

2. A high % of the new shares will vote Musk's way = a higher bulwark against an HTO.

So in one fell swoop he has hade it harder as well as far more costly to make a tender offer for Tesla.

This pre-emptive moves means the first indications on an HTO have already occurred.

the point I made a few weeks ago was validated today and will continue in the following days.I don't have more to say at this time

Few buy any thing, leave alone companies, without a reason. It is only a few shopaholics that buy on impulse.

In the instant case Solar city is a ready made company producing solar PV panels. Tesla is on the verge of releasing a new generation battery that would revolutionise stand-alone solar energy field, by total non-dependence on grid power.

Hence both companies would benefit. How I wish that I own some shares of both !

The problem I see with Musk's strategy is competition.

Even if he revolutionizes a battery, it won't be long at all before some other company has made an alternate version of it (Apple vs Samsung). And yes, apples to apples comparison because we are talking electrical/electronics, and SO MANY companies are currently working on battery storage technologies, and more efficient PV sources/technologies.

Next, is his car. How many other companies could put a competing electric car on the market quickly? Let's see....GM, Chrysler, Ford, Toyota, Nissan, Honda, Hyundai, Kia, Subaru, Mazda, Suzuki, Mitsubishi, ....not to mention the European auto companies....and the Chinese upstarts.

Musk just won't be able to dominate the market, even with being first to market. A losing proposition, I think.

.....And Fredski, you just have to stop posting all these thought provoking issues......Someone's gonna sue you over undue pain and suffering....

What?? Someone is questioning Solar City??? How can that be???

Unfortunately I am stuck with Buffalo stations as my "local" stations on my satellite dish system, (bad initial decision on my part and now, despite living in Pa, I can't switch to Pittsburgh or Erie) and ALL I've heard for the past year was how great Solar City is and how it is going to resurrect the industrial position of Buffalo now that steel is gone. The little incident where they are having trouble paying the construction crew while a federal probe of the bids is on going, gets greatly down played here. I assume that has something to do with Musk's decision, and also the fact that they have a time limit on how long it takes to get to 1500 workers, or the sate of NY is going to fine them.

I'm not saying this is his strategy, because I have no way of knowing, but the trend is toward leasing things. AT&T leases phones (well, you buy over a 2 year period and they you get another one in two more years), more people are leasing cars ($200/mo for a 2016 Camry vs $350/mo to buy), more home/apt renters vs owners, etc.

When leasing a solar panel system, the leasee signs up for a long term contract (20-25 years) with the solar company. The solar company sells energy to the leasee for a set amount - less than the cost from the utility company. The leasee is required to buy every watt of power the panels produce, then the excess is pushed back to the electric utility and the leasee receives a credit on his account - here in CA with SCE, you receive a kWh credit on your account, but no $$$ refunded. During times of low light, the utility co is supplying energy to the house, since there is no way to store electricity, unless you have a Powerwall. So you have excess electricity being sent to the electric company during the day and in the evening you're using their electricity.

In this case, the solar company can replace the electric utility - in essence, Elon has bought a utility company which has a high cost to build and set up the panels, virtually $0 on going costs other than minor maintenance.

"The leasee is required to buy every watt of power the panels produce, then the excess is pushed back to the electric utility and the leasee receives a credit on his account....."

I guess what I don't understand here, is the part where the household (customer) has to buy every watt of power produced. So, where is there any excess, if the customer has purchased that power?

It all sounds like snake oil sales to me.

I looked online at what the many different Chinese companies are charging for panels, panel kits (assemble your own panels) and various charge controllers, etc. An enterprising, tech savvy, mechanically inclined person could put up a system for about $1.50 per watt. (No storage included). This, I could do. Rather than store the watts, I would use them during the day (swimming pool pumps, water heater, whatever...) But, even with the DIY skills, shopping around, I just can't get a good return on the investment. And, SolarCity is having customers sign a 20 year lease for this privilege??

One thing I recently read was, that without major federal and state tax credits kicking in, NONE OF THIS IS PROFITABLE FOR ANYONE!

But, hey, don't those shiny blue panels look COOL??!! Yes, you could be the first in your neighborhood.....!

Maybe I'll just paint some panels blue and mount them on my roof......

Here's an example. Let's say it's spring and your panels generate 5,000 watts. Let's say that during the day, you use 500 watts. So every hour, your panels are generating too much power and the excess is "pushed" back to the electric company. In the example, it's 4,500 watts or in one hour 4.5kWH. In a typical spring day, you could "bank" 45kWH with the utility co. The solar company will charge you for 120kWH for the day (5,000 watts x 24 hours).

You are billed for 120kWH per day, but you only used 75kWH and banked 45kWH with the utility. Normally your April bill may be $70, but with the new solar company, you may be billed $100 from them.