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SolarCity was acquired because it was running out of money. There where a lot of questions whether Tesla over paid for the asset because of Elon musk's ownershi
by chrisgd 9y ago
SolarCity was acquired because it was running out of money. There where a lot of questions whether Tesla over paid for the asset because of Elon musk's ownership in both companies. Not having any more money to spend on aggressive expansion might be the biggest reason for the decline
- zer00eyz 9y ago"Tesla declined to comment for this story, but has previously said that while sales are down, margins are up. The company expects its fourth-quarter solar installation numbers to be higher than those of the third quarter." Lets assume what your saying is true, as is the above statement (and the article hints that there was concern about the debt model solar city was using). The decline in sales and the increase in profits look like there is an attempt to right the ship, rather than persist with a model that doesn't function well.
- prepend 9y agoProfits are increasing because they stopped expensive marketing and promotion to attract customers. Solar city was actually losing money with new customers. So just by Tesla stopping new customers they increase their income.