Tag Archives: SolarCity

Tesla wants to sell solar panels, batteries, and electric cars under the same umbrella

Tesla is reporting Q2 this week, and big things have happened lately. On Monday we can see that Tesla`s share price is falling, so why is the shares falling this time? CEO Elon Mush have made a deal with SolarCity.

Tesla and SolarCity are both cash-burning companies, and the agreement to merge gives Tesla`s shareholders more risk. The shareholders at SolarCity will receive 0,11 Tesla shares for each SolarCity shares if the deal goes through.

 

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I used the terms «goes through» because the deal is not done yet. This is why investors should be cautious about this deal right now. The deal must be approved by a majority of shareholders in both firms.

Elon Musk and Tesla said on Monday that SolarCity and Tesla can offer residential, commercial and grid-scale integrated solar and energy storage products. These products will «improve the way that energy is generated stored and consumed,» Tesla said.

Tesla also said on Monday that combining Tesla and SolarCity could save $150 million or more in its first full year after closing.

The deal was first announced in late June, and this is a $2,6 billion deal. We have super-humans on this planet and Elon Musk is one of them. What is he thinking with this acquisition? He will try to create a company that sells solar panels, batteries, and electric cars under the same umbrella.

Tesla has spent a lot of time and money on producing its Model S and Model X cars, and now they are spending a lot of time and money on its Gigafactory outside of Reno, Nevada. Elon Musk has earlier said that he thinks Tesla and SolarCity could create a trillion-dollar company.

The deal is expected to be close in Q4 this year if the deal is approved by regulators and independent shareholders.

Tesla have underperformed the S&P 500 so far in 2016. While S&P 500 is up 6%, Musk`s company is down 4%. Tesla is down about $2% on Monday, while SolarCity have plummeted about $7%.

The company reported a loss of 48 cents in the same period last year, and analysts reports an adjusted loss of 56 cents this time, which is much more than last time.

The sales are expected to reach $1,60 billion in the quarter, compared with $1,20 billion in the same period last year, but they are still burning cash.

Tesla will report Q2 earnings on Wednesday after the market closes.

 

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Who is Elon Musk?

 

The mind behind Tesla, SolarCity and SpaceX is the entrepreneur Elon Musk. A man with many plans. He is also the founder of PayPal and Zip2. Widely considered a co-founder of each. He has also envisioned a conceptual high-speed transportation system known as the hyperloop.

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Elon Musk met his first wife Justine Musk at Ontario`s Queen`s University. They married in 2000 and separated eight years later. They have six sons, the eldest of whom, died of SIDS when he was 10 weeks old.

 

In 2012, he ended a four-year relationship with his second wife, British actress Talulah Riley, but in a 60 Minutes interview on March 30,2014 he said he is still happy together with Talulah. In February 11, 2014, Musk was invited to attend a state dinner at the White House.

 

Most of you probably know the story of Steve Jobs (Apple Inc), but Elon Musk is often compared to Steve Jobs and Henry Ford. It can`t be better than that. I personally like people who is thinking big. Really BIG! Thinking they want to go to the moon or into the space. Just like John F. Kennedy.

 

First of all, Elon Musk is an investor. He earned his big money during the financial crises in 1998. This is how succesful investors are doing it. Earning money no matter where the market goes. The most important thing is to be on the right side of the market!

 

Elon Musk was born in Pretoria in South Africa, in 1971, to a Canadian mother and a South African-born British father. He taught himself computer programming and sold the computer code for a video game called Blaster for $500 when he was 12 years old.

 

In 1992, Elon Musk transferred to the University of Pennsylvania where he received a bachelor`s degree in economics from the Wharton School. He stayed on a year to finish his second bachelor`s degree in physics.

 

Then he moved to California to pursue a PhD in applied physics at Standford but left the program after two days to pursue his entrepreneurial aspirations in the areas of the internet, renewable energy and outer space. He became an American citizen in 2002.

 

Musk did not start his business career at Tesla. His fist company was Zip2 which is a web software company. Zip2 developed and marketed an internet «city guide» for the newspaper publishing industry.

 

Compaq acquired Zip2 for US$307 million in cash and US$34 million is stock options in 1999. Musk received 7% or $22 million from the sale, and co-founder of Zip2 was his brother, Kimbal. Now, Mush had money to start a new project.

 

He co-founded X.com, an online financial services and e-mail payment company. One year later, the company merged with Confinity, which operated a subsidiary called PayPal. The original intent was to merge the two systems, but it never happened.

 

Musk favored the PayPal brand over the X.com brand, and PayPal`s early growth was due in large part to a successful viral growth campaign created by Musk. PayPal was acquired by eBay for $US 1,5 billion in stock, in October 2002.

 

PayPal`s largest shareholder was Elon Musk and he owned 11,7% of PayPal`s shares. He pocketed $165 million from the sale, which was good for the next project. His third company was SpaceX. Musk co-founded it with rocket propulsion engineer Tom Mueller in June 2002.

 

SpaceX develops and manufactures space launch vehicles with a focus on advancing the state of rocket technology. The company`s fist two launch vehicles are the Falcon 1 and Falcon 9 rockets, and its first spacecraft is the Dragon.

 

The company was awarded a $1,6 billion NASA contract on December 23, 2008. They designed Falcon 9/Dragon with astronaut transport in mind and the Augustine commission recommended that astronaut transport be handled by commercial companies like SpaceX.

Musk revealed that he was influenced by Isaac Asimov`s Foundation series and views space exploration as an important step in expanding the consciousnes of human life. But why is Elon Musk so interested in the space?

 

He had said that multiplanetary life may serve as a hedge against threats to the survival of the human species. «An asteroid or a super volcano could destroy us, and we face risks the dinosaurs never saw: an engineered virus, inadvertent creation of a micre black hole, catastrophic global warming or some as-yet unknown technology could spell the end of us.

 

He founded SpaceX with $100 million of his early fortune, and he wants to reduce the cost of human spaceflight by a factor of 10. In an interview, he said he hopes to send humans to Mars surface within 10 – 20 years.

 

Tesla Motors was co-founded by Martin Eberhard, Marc Tarpenning, JB Straubel, Ian Wright and Elon Musk, who became involved with the company in 2004, as a Series A investor. They started with the electric car called the Tesla Roadster, with sales of about 2,500 vehicles to 31 countries.

 

They began delivery of its four-door Model S sedan on 22 June 2012. Model X is scheduled to begin production in early 2015. I think many are waiting for that SUV to be released on the minivan market.

 

In addition to its own cars, Tesla sells electric powertrain systems to Daimler for Smart EV and Mercedes A Class and to Toyota for the RAV4EV. Musk was able to bring in both companies as long-term investors in Tesla.

 

Musk provided the initial concept for SolarCity, which was then co-founded by his cousins Lyndon and Peter Rive. Musk remains the largest shareholder and SolarCity is now the largest provider of solar power systems in the United States. The underlying motivation for funding both SolarCity and Tesla is to help combat global warming.

 

Like many other investors, Musk started his own foundation called Musk Foundation, which focuses its philanthropic efforts on science education, pediatric health and clean energy. He is trusted of the X Prize Foundation, promoting renewable-energy technologies.

 

In 2011, he visited Soma City in Fukushima, Japan, which had been devastated by tsunami, and he donated a solar power project valued at $250,000 to this city. He also donated a solar-power system for critical needs to a hurricane response center in Alabama that had been neglected by state and federal aid. SolarCity is not involved in this state.

 

Elon Musk joined The Giving Pledge in April 2012, offering an ethical commitment to donate the majority of his fortune to philanthropic causes. Musk became a member of the campaign first popularised by Warren Buffet and Bill Gates with class of 12 of America`s wealthiest families and individuals. What a great story!

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

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EL Cars

It seems like Tesla (TSLA) is on the way to change one of America`s most beloved industries – Automotive. This is not only good for Tesla themselves, but SolarCity (SCTY) will profit from it too. You probably know Tesla`s Superchargers.

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Not everyone knows that Tesla`s superchargers is powered by a combination of electric grid, solar, and batteries. The batteries are being used to store excess solar energy and offset the costs of buying energy from the grid.

 

SolarCity is working on a new project called DemandLogic battery storage systems. They have tested the battery systems (provided by Tesla) in some people`s homes to complement their solar panels.

 

The intention is to bypass peak rate charges and store or sell any excess energy, ultimately providing a lower energy bill. Just like the superchargers. You can just imagine how it will be in the future as the technology matures.

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A joint venture by Elon Musk and SolarCity could be a great company to make a better world! SolarCity is up 51,6% in 2014, while Tesla is up 67,9% in 2014. Tesla is up 625,1% (1 YR). SolarCity is up 375,6% (! YR). Great!

 

Reports today:

 

08:30 AM ET GDP
09:45 AM ET Chicago PMI
09:55 AM ET Consumer Sentiment
10:00 AM ET Pending Home Sales Index

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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SolarCity up 449,4%

I wrote about Zynga (ZNGA) yesterday, among other social media websites. The funny thing is that Zynga was the most active stock on Nasdaq yesterday. A volume leader (80,081,587), and that is twice as much as Microsoft. Wow! Zynga plummeted -12,16%.

The gaming company recently made an official statement that Zynga is now working with BitPay and will accept the currency in some of its games. This innovative approach will allow you to pay with Bitcoins.

Gamers do not need any credit card or a PIN to be signed in to their site, and transfer funds electronically. With their new mobile games for Apple`s iOS platform, they try to differentiate themselves from their competitors like International Game Technology (IGT) and Electronic Arts (EA).

That was the big loser on Nasdaq yesterday, but who was the winner? Earlier, I wrote about the health-care bull. Yesterday`s winner on Nasdaq was Sarepta Therapeutics Inc (SRPT). This winner is up 40,14%.

Number three on the Nasdaq winner list yesterday was another health-care company. Prosenca Holding (RNA). The stock is up amazingly $24.37%. Not bad for only one trading day. Analysts are bullish on both health-care stocks mentioned in here.

Another winner yesterday was SolarCity (SCTY), which is up 12,12%. So far this year this stock is up 35,2%. Last 12 months, the stock is up 449,4%. SolarCity Corp is engaged in designing, sales, engineering, installation, monitoring, maintenance and financing of solar energy systems to residential and commercial customers, and sale of electricity generated by solar energy systems to customers.

2013 was the year for solar stocks. Solar ETF`s like Guggenheim Solar (TAN) and Market Vectors Solar Energy (KWT) is up 114% and 92%. First Solar (FSLR) is downgraded. Most of all because they have a different business model than SolarCity. We have seen an intense insider selling in SolarCity last 30 days.

You can imagine how this industry will look like in the future if (or shall I say when?) the oil price is declining. The oil price will probably peak out at around $150 a barrel, but in the long run it will decline and hit the bottom at around $10 to $20 a barrel. renewable Energy is the future!

News today: Building Permits & Housing Starts at 8:30am, Capacity Utilization Rate & Industrial Production at 9:15am, Prelim UoM Consumer Sentiment at 9:55am, JOLTS Job Openings at 10:00am.

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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