Thursday, November 17, 2016

Musks Solar Deal as a “walking bankruptcy” hedge Fund attack Tesla’s … –

Elon Musks SolarCity Deal: "Perfect combination" or "changing bankruptcy"?


Elon Musks SolarCity Deal: “Perfect connection” or “walking bankruptcy”?

For 2.6 billion dollars, wants to swallow, the electric car maker Tesla green energy company SolarCity. This Thursday, the shareholders are to vote on the merger. A hedge Fund Manager speaks with views of SolarCity of a “walking bankruptcy”.

Tesla CEO Musk says a “perfect connection” with obvious advantages. The Takeover, creating the only fully-integrated energy company in the world, with sustainability: power generation and energy storage systems from SolarCity, the environment-saving transportation with the electric car from Tesla. As a “unique combination that surpasses what you can offer each other company,” praises the Superstar of the Silicon Valley its Plan.

Nevertheless, there is considerable doubt. Critics accuse Tesla chief Musk’s conflicts of interest and nepotism, as he is at the same time, the largest shareholder and Chairman of SolarCity. He was the obstetrician, the Cousins founded and-run company. Also Tesla co-founder JB Straubel sits on SolarCity’s Board of Directors. The great investor Jim Chanos described the planned Deal as a “worst example of shameless corporate governance”.

hedge Fund Manager Chanos speaks of “walking bankruptcy”

The well-known hedge Fund Manager speaks of a “walking bankruptcy” and assumes that the merged company is about to burn a billion dollars per quarter. Chanos makes no secret of the fact that he thinks of Musks business practices and a decline in the price of the shares of his company’s bets. The financial investor may be an extreme example of a particularly stringent views, but also more moderate voices are skeptical.

it Would act the Acquisition is not a “Silicon Valley Deal”, the Plan would have failed, even at his announcement, wrote about expert Steven Davidoff Solomon, in his New York Times column on the “Deal Professor”. The project was given the interdependence of the company’s “incestual” and so strong conflicts of interest subject as possible. That Musk can go through with it, spent his Bonus as a Tech Visionary.

Musk, already holds 22 percent of SolarCity

in fact, the 45-year-old Self-made billionaire has little problems, to give investors the delicate Deal. The native South African, earned his start-up capital as a co-founder of payment service Paypal, you can sell as a Guru of the Tech scene anyway, pretty much everything: Musk alongside space travel company SpaceX, and the Hyperloop – a kind of futuristic tube post, people with up to 1200 kilometers per hour to transport.

a Sober look at the rules to see numbers from SolarCity, however, is questionable: In the last quarter, a loss of 225 million dollars fell, although the turnover was only $ 200 million. The share offering price of the company, the “power wall”-batteries as energy storage in the home and Solar roof tiles, has crashed since the beginning of the year to 60 percent. No wonder that some observers Musks valued interest in the company as a way to save there invested money, writes “the Deal Professor” Davidoff.

The Tesla CEO holds nearly 22 percent of SolarCity and is not only the largest shareholder, but also in possession of significant voting rights. Behind it hard to the investment scene weights, such as asset managers and Fund-follow in addition to other senior members of the corporate giants Fidelity, Vanguard and Blackrock. They are all Musk sympathetic.

Therefore, the consent to the Deal, despite all the criticism – as good as safe.

Of Hannes Breustedt, dpa



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