Wow, Musk looks pretty cooky for suggesting this. There are so many red flags:
- Musk wanting to use one company he owns (majority shareholder and CEO) to buy another company he owns (majority shareholder and chairman) - yeah, no conflict of interest there....
- Solar panels have little to do with making electric cars, I can't see how Tesla is better off by having this production in house. Yes, the two could conceivably compliment each other, but there is zero reason for both to be under the same roof...maybe some kind of crazy subsidy on the panels for buying a Tesla car? That still doesn't solve the financial issues....
- Solar City is not doing well financially and was/is likely facing bankruptcy in the next year or two unless something drastic happened, Tesla would be taking on much of that cash burn
- Tesla has its own problems with cash-burn. It will likely have to issue more stock in order to fund purchases of the massive amounts tooling required to ramp up to the (nearly) impossible production numbers it has set for itself. Why bring on another company that is an even larger money pit at such a crucial time? The future financial viability of Tesla is by no means a sure thing....
This might be the time where shareholders finally stop putting up with Musk's crazy ideas and bring him back to reality.
- Musk wanting to use one company he owns (majority shareholder and CEO) to buy another company he owns (majority shareholder and chairman) - yeah, no conflict of interest there....
- Solar panels have little to do with making electric cars, I can't see how Tesla is better off by having this production in house. Yes, the two could conceivably compliment each other, but there is zero reason for both to be under the same roof...maybe some kind of crazy subsidy on the panels for buying a Tesla car? That still doesn't solve the financial issues....
- Solar City is not doing well financially and was/is likely facing bankruptcy in the next year or two unless something drastic happened, Tesla would be taking on much of that cash burn
- Tesla has its own problems with cash-burn. It will likely have to issue more stock in order to fund purchases of the massive amounts tooling required to ramp up to the (nearly) impossible production numbers it has set for itself. Why bring on another company that is an even larger money pit at such a crucial time? The future financial viability of Tesla is by no means a sure thing....
This might be the time where shareholders finally stop putting up with Musk's crazy ideas and bring him back to reality.
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