Despite the aura surrounding Musk, who has a 26 per cent stake in Tesla and a 22.5 per cent interest in SolarCity, investors have been skeptical about the deal from the outset.
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Tesla’s founder Elon Musk has revealed the company will be rolling out a new version of its Autopilot software embedded in vehicles. In particular, Ford has established a way for its new collection to fit three different powertrains, making it more convenient for buyers.
The February discussion between Musk and Lyndon Rive was described in documents as “high-level, conceptual”, with the two CEOs talking about possible product offerings from the combined company.
And while SolarCity is growing revenue at impressive rates of well over 50% each quarter, the company is projected to lose $8.79 per share in fiscal 2017. That likely means less reliance on debt to fund the business, but it also means lower margins and customers with an easier ability to compare prices.
Tesla has traded nearly half it 30-day average volume of 2.85 million shares, trading 1.17 million shares so far today. (NASDAQ:TSLA) filed a document with the SEC yesterday which contains new information, the media’s main focus was toward another round of funding for the Model 3 and the Gigafactory. At that time, board members passed on the idea because they were concerned that it would create just another merger for the EV maker’s management. How will owning a battery manufacturing facility, a solar panel plant, and an auto assembly plant work together?
Tesla received approval from federal anti-trust regulators from the Federal Trade Commission to acquire the struggling SolarCity, a company in which Elon Musk has previous ties with, as Solar City’s current largest shareholder and cousin of its CEO. And that could be playing a role in SolarCity’s falling stock. Some interesting details about the proposed merger deal with SolarCity Corp. Now, Tesla owners are being given more responsibility to respond to the visual alerts or risk seeing the feature get disengaged in the middle of their drives.
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As a result, Tesla would have around US$400 million in cash at a time when both Tesla and SolarCity have been burning through cash.
