5 ms·

So two companies with great potential. One (Solar City) has a problem convincing investors and is exposed to wide fluctuations and the other (Tesla) is pretty g

So two companies with great potential. One (Solar City) has a problem convincing investors and is exposed to wide fluctuations and the other (Tesla) is pretty good at managing expectation and enthusiasm in the market. So I guess the idea here is to limit exposure in one of them by absorbing it in another. Might work but goes counter intuitive to the idea that I always thought was the most important in Musk companies: Focus. Focus on delivering one main value. Hope this works out.

aerovistae 10y ago
Given that he's done a stellar job running two impossibly difficult companies for a decade now, I'd say he knows how to focus.
- electrum 10y ago
  Three companies: SpaceX
  - outworlder 10y ago
    No, the parent is right. Elon Musk runs two companies. He has some stake in SolarCity right now, but doesn't run it.
kbenson 10y ago
He's expanding the stack of technologies and resources he can directly control. First there was the car, but the car is only useful with good batteries, enough service stations, and cheap power. Step 1, open service stations and provide cheap power. Step 2, integrate the batteries so you can control production and reduce cost. Step 3, integrate power generation so you can control cost of that cheap power you are providing. This is the equivalent of Ford buying Exxon (which already includes the service stations), and then offering cheaper gas to all Ford customers. Who doesn't think that would influence at least some people (or companies! Fleets of cars!)
- the_watcher 10y ago
  > This is the equivalent of Ford buying Exxon Henry Ford wasn't a founder of Exxon. Musk is a founder of SolarCity.
  - kbenson 10y ago
    I'm not sure how that's relevant. Musk being a founder of both companies doesn't magically make them different in what they are and do. The pieces of the pie in play are similar, if apportioned differently. They would combine to a similar whole.
    - chronic80 10y ago
      This, ladies and gentlemen, is the perfect example of an Elon Musk fanboy.
  - DrScump 10y ago
    Henry Ford wasn't a founder of Exxon. That would have been some trick, given that Exxon didn't exist until 25 years after Ford died. ;)
- ewindisch 10y ago
  If he's using these for the SuperCharger network and plans to "gas-up" cars with solar... I don't think they can get that level of efficiency from panels spread through a gas station lot? Because that's where this purchase would seem to make sense to me, is with a nationwide network of SuperChargers powered by solar. I'm sure some value would also come from selling to residential buyers with Teslas?
- hyperbovine 10y ago
  Power is already cheap -- that's sort of the whole problem. I do not think you can rationalize this move by such a vertical integration argument.
  - kbenson 10y ago

aerovistae 10y ago

Given that he's done a stellar job running two impossibly difficult companies for a decade now, I'd say he knows how to focus.

electrum 10y ago
Three companies: SpaceX
- outworlder 10y ago
  No, the parent is right. Elon Musk runs two companies. He has some stake in SolarCity right now, but doesn't run it.

kbenson 10y ago

He's expanding the stack of technologies and resources he can directly control. First there was the car, but the car is only useful with good batteries, enough service stations, and cheap power. Step 1, open service stations and provide cheap power. Step 2, integrate the batteries so you can control production and reduce cost. Step 3, integrate power generation so you can control cost of that cheap power you are providing. This is the equivalent of Ford buying Exxon (which already includes the service stations), and then offering cheaper gas to all Ford customers. Who doesn't think that would influence at least some people (or companies! Fleets of cars!)

the_watcher 10y ago
> This is the equivalent of Ford buying Exxon Henry Ford wasn't a founder of Exxon. Musk is a founder of SolarCity.
- kbenson 10y ago
  I'm not sure how that's relevant. Musk being a founder of both companies doesn't magically make them different in what they are and do. The pieces of the pie in play are similar, if apportioned differently. They would combine to a similar whole.
  - chronic80 10y ago
    This, ladies and gentlemen, is the perfect example of an Elon Musk fanboy.
- DrScump 10y ago
  Henry Ford wasn't a founder of Exxon. That would have been some trick, given that Exxon didn't exist until 25 years after Ford died. ;)
ewindisch 10y ago
If he's using these for the SuperCharger network and plans to "gas-up" cars with solar... I don't think they can get that level of efficiency from panels spread through a gas station lot? Because that's where this purchase would seem to make sense to me, is with a nationwide network of SuperChargers powered by solar. I'm sure some value would also come from selling to residential buyers with Teslas?
hyperbovine 10y ago
Power is already cheap -- that's sort of the whole problem. I do not think you can rationalize this move by such a vertical integration argument.
- kbenson 10y ago