Tesla makes offer to acquire Solar City

[Tam]

Elon: Can't talk about plans. Very optimistic about those plans.

High efficiency, low cost. Looks better.

Get together very well with PowerWall Power Pack side.

 

[Tam]

Barkely: 2 directors not voting. How independent the rest of directors?...

 

[Tam]

Todd: Recuse from voting. Just focus on business side.

Barkely: Cash?

 

[Tam]

?Jason: Can't talk right now about combined cash of 2 companies. Due diligence.

 

[Tam]

Elon: Solar City has no impact on cash.

Barkely: How both sales of Model 3, Solar?

 

[Tam]

Elon: We need an integrated product. One piece.

Easier, not harder.

Why company exists at all? Compelling product.

 

[Tam]

Charlie Anderson: Shareholder has Synergy numbers to vote. Costs...?

 

[Enadler]

At this time I believe this acquisition will make it much more difficult for Tesla to deliver the Model 3 on time and on budget. This acquisition will just accelerate Tesla's cash burn!

 

[Tam]

Elon: costs drop on both sides.

 

[Tam]

Charlie Anderson: why now?
Elon: ramping up Powerwall/packs, Silevo acquisition...

 

[Tam]

?some body: Change ratio you offer?

 

[Tam]

Elon: quite reasonable.

extremely normal.

A trillion dollar company.

 

[Tam]

?some body: near term shareholder to vote? Chicken and egg? Not enough time to digest.

 

[Tam]

Elon: Exchange ratio is reasonable. Reasonable Premium. Reasonable Market Cap. Definitely up to you guys shareholders.

We'll standby with shareholders vote but have zero doubt about this.

 

[Woosie]

No. A true collaboration between Tesla and Solar City means there'll be little to no chance the Powerwall will integrate with solar solutions except those made by Solar Ciry.

And I'm sold on Sunpower as the solar manufacturer, not Solar City.

 

[Tam]

Elon: Is there any way to do this? As fair as possible? Legally correct, morally correct?

Q: When get financial information?

 

[Tam]

Elon: I agree. This is beginning of the process, not the end.

Q: Solevo--cost advantage? Cost projectory?

 

[Tam]

Elon: Best manufacturing. Not by small margin that people thought. Higher efficiency. Same roof with third more power. Aesthetic speaking, look much better. Significantly better: Night and day difference.

Q: fundamental technology to bring the cost down? But Solar City is construction and finance...

 

[greenemg]

I'm thinking bigger picture.

Elon suggested that there would be benefit to the Tesla store fronts in consolidating the Power Wall, Solar and vehicles.

Reading a little deeper between the lines, I think they will use this streamlined approach to circumvent some of the issues they are having getting stores into states where the dealers association.

It could to be a shrewd strategic move long run.

 

[Tam]

Elon: Efficient logistics.

I don't see any reason why Silevo panels will cost less. Super competitive.