Support For SolarCity

Musk’s “Part Deux” unveiled to reassure investors

The ever-visible Elon Musk, CEO of Tesla, wants to ensure potential shareholders that his unfinalized purchase of SolarCity is a worthwhile investment, not the bad deal some have labeled it in the past few weeks. So he yesterday enfolded it into an announcement about his overall business/energy integration plan, honoring the SolarCity purchase by including it in “Part Deux” of his master plan.

Musk proposed to merge the two companies back in June. He is the largest shareholder of both companies. The proposal has been delayed for a number of reasons, most notably the recent wave of criticism of Tesla’s Autopilot feature on its Model S sedan cars stemming from a fatal incident that has the feature under investigation. Tesla’s stock also fell 10% after the initial announcement, sparking the current delay. Initial reactions included a concern that SolarCity’s recent troubles would weaken Tesla. Major investors, which include Fidelity, T.Rowe Price, and BMO Asset Management, are currently deliberating to set a date for a vote. Tesla expressed supreme confidence earlier this week to the Wall Street Journal, proclaiming that he expects a two-thirds majority in favor of the merger.

Elon Musk wants to instill confidence in investors, while simultaneously describing some of his innovative plans for the future.

Elon Musk wants to instill confidence in investors, while simultaneously describing some of his innovative plans for the future.

To instill more confidence, Musk proceeded with a public release of “Master Plan Deux” details Wednesday via Tesla’s website, describing his intentions on how to integrate the two companies. Tesla’s four-pronged approach plans to focus on selling integrated energy generation and storage, an expansion into other forms of ground transportation like trucks and buses, as well as autonomous driving technology. It is also looking to allow owners of its cars to share their vehicles with others in order to have the cars make money when they aren’t in use. Perhaps the most relevant provision of Tesla’s post is that the company is aiming to build an integrated solar-roof-with-battery product. This explains the acquisition of SolarCity, and the two companies, according to Musk’s vision, will be able to combine forces to build a single product. The solar provider is headquartered in San Mateo, California.

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Trackbacks/Pingbacks

  1. Elon’s Empire | Electrical Apparatus Magazine - August 11, 2016

    […] to an item from three weeks ago: Elon Musk has successfully consolidated his two major investments. Although the merger of Tesla […]

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