LOL dinoissoyoung You clearly don't remember the early IBM desktops from the mid 1970's. But surely you remember or saw in the movies the brick phones? They were used by thousands of us, and are now collectors items. I don't even think the AAPL boys were out of diapers when these two items were invented. And decades before that when IBM built the first "big" computers they didn't vertically integrate. There was a vacuum tube manufacturer called RCA that was a leader in its field.
LOL I laughed yesterday when I read that news article. I'm still laughing this morning, this afternoon and this evening. We would all have to sell half our houses, half our cars, travel half as much, work half as much, eat half as much... and still not achieve that. I think this artilcle is clearly in the running for the 2016 ChangeTheWorldbySillyness award, But big competition from the Eloon. I have compleete faith that he can say something even sillier later today or tomorrow and pull back into the lead.
Help me with this. Is TSLA actually developing the fundamental technology for autonomous driving? In what lab? Freemont? Giga? Or is TSLA just implementing the technology of third parties like MLBY? ??
How about NO on option A, No on option B and NO on option C.
A: if he needed that magical synergy between design/build of powerwall and solarcity (watever that is?) then spin off that part of TSLA's business TO SCTY. No need to bring it into TSLA.
B:If the deal is stock only then TSLA has not provided any additional support to SCTY. And even if it were a cash deal for SCTY that cash goes to SCTY shareholders not to SCTY. To support SCTY requires cash in SCTY's bank. And TSLA isn't buying a secondary offering of SCTY. And TSLA isn't buying bonds of SCTY. And TSLA isn't providing guarantees to SCTY. So the idea of suppport for SCTY is a phantasy as the deal is currently proposed.
C: Whether SCTY is a stand-alone company or a subsidiary of TSLA likely doesn't change any of the guarantees, security, margins that the Eloon has put up as collateral for his loans and stock purchases. So when SCTY shows its real value in the market or files for Ch10/11 It's a hit, a big hit to the Eloon. His only way out was a third party purchaser of SCTY; and that is now foregone.
LOL Just thought this needed a Bump. It is funny and very revealing at the same time. The Eloon has no clothes.
Don't confuse lies with genius, inovation, insight, and disruption.
Well, the article clearly confuses the issue of cash flow needs for operational and capital requirements, tapping the capital markets, and the completion of a stock buyout deal. From the info so far, the TSLA offer for SCTY is a full stock deal. So just exchange TSLA stock for SCTY stock; no cash needed. And as for the cash needs of both companies, since there are no "synergies" to be had (just as in 99.99% of M&As) the needs for cash don't change. Milliions and Billions required. But the big miss of this all is that it has reduced if not eliminated TSLA's chance to go back to the capital markets again.SCTY is essentially out of that option already. So TSLA and SCTY have to rely on their own operational cashflows..!!! hahahah LOLOLOL. The Eloon story is now in nearing the end of chapter 9. Only a few more chapters to go.
LOL messnwithgaap I would suggest that God is just one of those in the long line of those who bless the new god nonGAAP. The old god can't quite push his way to the front of the line because the SEC, NYSE, Wall Street, Hedgies, VC, PC, MSNBC et al are at the front wiggling and kissing and bowing. And every quarter they invent a new one!
LOL montanagetsskepticseverywhere. Good article. And it's nice to know that Keef is from upsidedown - that explains it all! And, of course, more of the same Eloonatics and Elmoonies whose comments show that they have seen the light. All praise to the ELoon.
LOL keefmakesmelaugh I read, I laugh, I weep. The last time I ever took a car in for the fifth time for the same repair was - never. How is it possible that presumably resonably capable people do it five times? The third, fourth or fifth time should have been to a Lexus, MB, Audi, Porsche dealer to negotiate a trade-in for a new buy.
LOL lobsteraintbright Did you perhaps mean "You're"? I'll explain if you don't understand. (Hint: Grade 5 grammar)
LOL allmixedup Let's rethink what technology companies are please. You might look at a company like Valeo, for example, and see that it is at the bleeding edge. You will also see that autonomous driving is not related to EVs. There is a long history and huge current development of autonomous driving for the old fashioned ICE engine.
LOL and where is SCTY going to get the cash from to fund those loans? They can't even borrow on the market at anywhere near 2.99%. So with their new accounting (nonGAAP) SCTY will borrow at 10.99% and lend at 2.99% and make 8 points of "profit"!. You gotta love your baby even if it is pig ugly.
LOL alexaysright. I had to pause for a moment and ask my self if that was the real temagami67, or if he was sick or if I was sick ... Because if he gets infected with the Eloon-virus way up there...
LOL and you think the price has already been paid for the S and the X fiascos? That he is redeemed and has a clean slate to do the 3? That a mea culpa and two Hail Mary's and a Get-out-of Jail card will get him around again? No, no, no. The price is yet to be paid. That's the problem. The price is yet to be paid, still to be paid, and will never be paid. He's lost $2.5B and the price is yet to be paid. He's built and incredible casheatingmachine that's 10x or 100x better than any other. And then the bondholders will ask for their money... LOL
For all these months you talked and bragged as a long investor. But you really are a trader? Up and down? So sometimes you are short? We can hande the truth. Can you tell it?
LOL ballcoachissmiling. If I ever got a thumbs up-down count of 1 - 9 I wouldn't just be smiling all morning, I would be laughing till the callgirls come home and they gave me another thumbs up the..
And isn't the solution always to fire the employees and managers or just do a reorg! That's pure Eloon talking. It's always their fault, so they have to pay. You can never ever consider the business structure and attitude and leader - all of the systemic facets. No No No... that just isn't done. They must pay!