You can create a religion out of any product's fanatics if you keep talking about the future.
Drive past local steeples and you will understand.
You're following the wrong guy.
He also gets a buffalo "plant" to make stuff. NY made SCTY its own free manufacturing plant. Maybe he can turn that into making cars too. Plus, they may avoid the fines that NY would impose on SCTY if they don't hire enough labor.
It has become a new age of pop-newage politicians and pop-science products. We deserve the future get when we are "dazzled by" these charlatans.
If the market makers do their job, your best price to close will most likely be at the open after they open the options trade. MMers are needed to keep the mutual funds' large holdings intact. How can companies like Fidelity, Bailley, TROWE and others lose $300M in an overnight deal? Oh I know - it's not their money, it is other peoples' money. No big whoop. I doubt they have enough SCTY to match their drop in TSLA.
Last four quarters (right to left progression) of SG&A
Selling General and Administrative 213,009 204,290 198,707 163,371
With huge ramp in SCTY's SG&A - something may be needed such as shutting down non-profitable states and cutting overhead quite a bit. With gross profits falling and SG&A ramping - the only solution is aggressive cost-cutting and M&A allows Tesla employees to work double-overtime doing the books for the combined company. Locate SCTY sales and staff at Tesla Service Centers to cut location expenses of SCTY workplaces. If a car repair guy is not fixing a drivetrain in a car, he can work on install teams for powerwalls or solar modules.
Insiders and big mutual funds hold almost all voting shares. Retail holders are left with whatever they can scrape together. Which "shareholders" are attempting to block this? And, if they do, they actually hurt Musk if he cannot save SCTY from itself using money Tesla got from stock selling. Too bad SpaceX can't buy more junk bonds from SCTY to prop it up with "rocket money".
It's like the neighbor who cannot afford to pay their mortgage taking out a HELOC so that they can make the first payment using money from the HELOC.
IB would have known while mutual fund managers are kept in the dark. The idea is flush from IB to mom and pop and your 401k funds. I have to wonder what funds like Bailley Gifford do. They are scottish and get cranky.
I have to wonder if they can bow out of the Buffalo gigafactory for scty with this move. That would save them millions in fines due if they do not meet promises for labor. $41.2 M per year per a recent story.
SolarCity's original 2014 agreement with the state required that in addition to 1,460 factory workers, it hire an additional 2,000 workers statewide for its installation business and another 1,440 contractors and suppliers, for a total of 4,900 jobs.
The new agreement requires that SolarCity hire a total of 5,000 workers in the state, which includes the 500 factory workers. And it must also hire the more than 1,440 contractors from the original agreement on top of that, said SUNY Poly spokesman Jerry Gretzinger, who added that the reduction of factory jobs would allow for more management and research-and-development jobs to be created.
"Regarding jobs, the overall commitment is higher," Gretzinger said.
The October agreement also says that SolarCity must now pay for $52 million of the $400 million the state is spending on manufacturing equipment for the factory. But Gretzinger said the money the state saves will be used to upgrade automation at the factory, a move that will extend the facility's lifespan to 20 years. The state had also committed $350 million to the building construction, which is nearly complete.
It may be a signal that scty was in trouble and this is a saving move. Not a lot of premium. Merge back office, layoff in underperforming states, send many scty workers into powerpack and powerwall mode. Utilize income from leases and PPAs for Tesla cash flow.
He is protecting his large investment in scty by using Tesla money gotten from recent stock sale, bond sales and other dollars such as ZEV. He also may be trying to keep scty contracts in buffalo in tact and not face clawback fines. It is a start of continued pressure. Did anyone see this coming? Chanos? Myself? All the "bashers". We can smell trouble as it was brewing and knew he has got to do further financial shenanigans as things get harder to hide.
I am going to see if I can help Montana write up a good reason for doing this buyout. Many reasons exist and can include pressure from Goldman and Others to "fix it". Expense management and other things appear on the horizon. A company bleeding cash does not buy another bleeding cash without some real basic reason. Could be solar city being tossed from Buffalo and then needing to use the GF for its space. Remember, NY paid for the buffalo plant. Not solar city, they can walk, possibly without recourse. Need to look into it.
I tried to sell 10 short puts in TSLA at a price I liked Monday. Partial execution before I got a feeling of don't do it. Closed the partial put yesterday later in the day. For a tiny profit I saved from being down 12,500 overnight now. Will donate some of that opportunity cost "win" to a good charity. I love the angels that protect me. Looking to sell much lower puts tomorrow. Low enough to be manageable. Would have liked to have been guided to buy weekly 210 puts... But this is not for greed.
This begins the next phase of unraveling. Well, not chapter one of it anyway.
Self-riteous California smugness makes the synthetic world of Hollywood possible. Bailing out the state long term may bankrupt the rest.of the country.