Wednesday, June 22, 2016

Elon Musk Aims to Shore Up SolarCity by Having Tesla Buy It - The New York Times

Later in the article: "“The world does not lack for automotive companies,” Mr. Musk said in Tuesday’s press call. “The world lacks for sustainable energy companies.”" Also see Musk Buys Musk: Tesla’s SolarCity Deal by the Numbers (Bloomberg)
"His Tesla Motors said on Tuesday that it had offered to buy SolarCity in an all-stock deal, one that could value the latter at as much as $2.8 billion. The aim, Mr. Musk argues, is to create a renewable-energy giant, collecting clean electricity and putting it to work propelling cars.

But the transaction highlights the unusual moves that Mr. Musk continues to make to support the various arms of his empire, where he is the largest shareholder of each company.

He has taken out loans to buy up shares in Tesla and SolarCity, some backed by his personal stock holdings in both companies — a risky move that leaves him exposed to margin calls if their stock prices slide too far. He has defended the practice as low-risk to other shareholders, given the sheer size of his personal net worth of more than $10 billion."
Elon Musk Aims to Shore Up SolarCity by Having Tesla Buy It - The New York Times
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