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> Are you're saying this from a short-term financial perspective? I'd argue it was a stupid move from a short-term, long-term, and even medium-term financial p
by xkjkls 8y ago
> Are you're saying this from a short-term financial perspective?
I'd argue it was a stupid move from a short-term, long-term, and even medium-term financial perspective. Not only did TSLA subsume all of SCTY's debt, they diluted their shares doing so, and most analysts of TSLA value the solar/energy business at a 0 despite the $2.6 billion acquisition. How many other businesses can make multi-billion dollar acquisitions that people think are goose eggs two years later without that being considered a bone headed move.
> It's my understanding that they recently cut a major sales channel, so it's perhaps not surprising that the number of installations have fallen.
And why did they have to do that? Because Tesla had been negative free cash flow for so long that they had to stop spending any additional money on Capex. Had they been in a better financial situation, like, for instance, like they would be if they didn't do this acquisition they might have been able to invest in future growth and wouldn't have done two series of layoffs in the last 6 months.