6 Burning Questions For Tesla's SolarCity Q&A

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Tesla Motors Inc TSLA will be hosting a Question & Answer Webcast to discuss its pending acquisition of SolarCity Corp SCTY at 2:00 p.m Pacific Time (5:00 p.m. Eastern Time). Both management teams will be only providing additional information about the yet-to-be-completed transaction. You can follow the webcast here.

Ahead of the event, Benzinga wondered what kind of questions traders and investors might need answered.

Trip Chowdhry, co-founder at Global Equities Research, also weighed in on the event. It should be noted that, while he is bullish on the deal, he decided to take the perspective of shareholders in recommending the enquiries below.

  • 1. Taking into account that "almost all the solar companies have evaporated, why is Tesla bailing out Solar City?"
  • 2. Wouldn't a partnership be equally attractive, without the need of taking unnecessary risk?
  • 3. "Fair Value of Solar City is no more than $500 million at best...the past products from SCTY are already obsolete, and new products are just announced, and the new offering has no track record." So, why should investors pay a 300 percent premium for Solar City?
  • 4. Will SolarCity's growth story and margin expansion only continue to get delayed due to the burden of taking on SolarCity?
  • 5. Will they, or won't they raise capital, and when?
  • 6. What is the highest-level vision Tesla has for working with solar and SolarCity? In other words, what is the ideal outcome for this acquisition? And how long is that timeline?
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Posted In: NewsPreviewsEventsTechTrading IdeasGlobal Equities ResearchTrip Chowdhry
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