3 ms·
So, I have no idea what the truth is, but didn't Solar City get bought out by Tesla? In that case, it would seem like it would have been better to clear the bo
by rossdavidh 8y ago
So, I have no idea what the truth is, but didn't Solar City get bought out by Tesla? In that case, it would seem like it would have been better to clear the books with an audit of past sales, so as to make the price Tesla would have to pay for Solar City, something easier for Tesla to pay. But, I am not a finance person.
- slivym 8y agoThe Tesla purchase of Solar City cannot be thought of like a normal purchase- because of Musk's role. Solar City had all sorts of problems before the purchase - it lost >20% of its workforce in 2016 and cut the salaries of it's founders to $1. There was also some really questionable self-dealing like SpaceX buying SolarCity bonds. It makes perfect sense for Musk as a person to use Tesla to support Solarcity - one of his enterprises supporting another. But that's not how public companies work, you can't force Tesla shareholders to overpay SolarCity shareholders for a buyout simply because Musk personally wants to see SolarCity succeed.But when you view it in that context is makes perfect sense to see why Musk didn't try very hard to drive a hard bargain purchasing SC.
- mrfredward 8y agoSolarCity was founded and run by Elon Musk's cousins. The conflict of interest has been a topic of discussion for quite some time, and some claim that Tesla intentionally ignored problems at SolarCity when deciding to do the deal.
- dralley 8y agoSolar City was founded by Elon's cousin. They got a much better deal than was warranted by the numbers, and Musk is being sued by investors over it.