Link here. It looks like we've seen this movie before.
Mr. Musk said that bringing electric cars, solar panels and battery
storage under one corporate roof would produce operational synergies and
create “the potential for Tesla to be a $1 trillion market cap
company.”
That’s about 32 times Tesla’s current valuation.
Neither
company (Tesla nor SolcarCity), though aided considerably by government renewable-energy
subsidies, has ever recorded an annual profit.
Last year Tesla lost $889
million—nearly three times as much as in 2014—while SolarCity’s loss
doubled to $769 million. Investors may be feeling déjà vu as a shadow
has fallen over the solar industry.
In April, the
renewable-energy conglomerate SunEdison filed for chapter 11 bankruptcy
following an Icarus-like fall. A year ago, former CEO Ahmad Chatila
predicted that his company would be worth $350 billion by 2020—about 35
times its market capitalization at the time. Nine months later, the
stock price had plunged by 99%, to 21 cents per share.
SunEdison’s stock first began to tumble last July when Mr. Chatila proposed paying $2.2 billion for the rooftop-solar installer Vivint Solar
(the deal was scrapped in March), which activist investors
lambasted as overpriced. It soon became clear that SunEdison’s growth,
enabled by debt and complicated financial engineering, was
unsustainable.
Notwithstanding Mr. Chatila’s sunny forecasts, the company had failed to
earn a profit in five years. An internal probe in April faulted a lack
of accounting controls and an “overly optimistic culture and its tone at
the top.” The Tesla-SolarCity deal is an all-stock exchange, but the
SunEdison fiasco is a flashing yellow light.
Much more at the link. Meanwhile,
the AP is reporting that MuskMelon has "another secret masterplan."
Tesla Motors CEO Elon Musk,
under pressure after a fatal crash involving one of his electric cars,
went on Twitter Sunday to say he's working on another "Top Secret Tesla
Masterplan." He said he hoped to publish details this week.
The
tantalizing message echoes an August 2006 blog post, titled "The Secret
Tesla Motors Master Plan (just between you and me)," in which Musk
unveiled the cars that became the Tesla Model S four-door family car and
the Tesla 3 sports sedan.
About the time we start hearing "secret plans" about anything, it seems it is just a matter of time before the house of cards starts to fall.
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