Financial Pain: Tesla & SolarCity Merger Are A Controversial Act Not Gain

Financial Pain: Tesla & SolarCity Merger Are A Controversial Act Not Gain

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Is merger good these days with companies? Well the latest is that Elon Musk wants to merge Tesla Motors Inc. and SolarCity Corp. Why? Well apparently Musk has dug himself in a hole quite deep. There are concerns about this as it is controversial considering both companies are not doing too well right now.

Apparently the shares in both companies are falling. So what if everything falls apart? SolarCity contains debt at about $3.35 billion. Where is the opportunity for growth when it looks like survival is the only option right now? What example is Musk setting for the revolution of the way individuals control their homes, cars and factories? The worst thing that could happen is that investors lose confidence in this merge and or his companies and Musk fails to gain any capital. Money we ultimately can’t live without it.

Bloomberg Markets, establishes that findings demonstrated that there were no additional bidders with an actual offer and that SolarCity is having difficulty raising income. Not including Tesla, there is no savior, according to Ross Gerber, co-founder and CEO of Gerber Kawasaki Wealth & Investment Management. He feels that if he himself won’t give Musk capital then no one will considering that he is a fan, but how can be possibly make an offer. Both Tesla and SolarCity are just continuing to drop. Investor anxiety is skyrocketing. Everything looks to just be a disaster and mess and the future for Musk and his dreams don’t look good.

All in all, when both Tesla and Solarcity were dropping between 5-10 % in shares, then how would combining them make things any better or maintain any ground for capital? I guess desperate times call for desperate measures. Sometimes you have to take a risk, but did Musk make the right one? Maybe he’s thinking what do I already have to lose considering how much I have already lost. I’m sure many are just wondering how much financial pain he is going through. Yes this ultimately might be a new disease.

Although the downfall with Tesla I’m sure it is still a great company and that in the past it has done well for itself. According to Statista, Internationally, Tesla brought approximately 17,400 cars in the year of 2015. On the whole, 2015 deliveries brought roughly speaking 50,580 units. Customers who invest in Tesla are looking or are interested in the high-end circle of the car marketplace. It is definitely a beautiful car if you can afford it.

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Brayden Fortin is a Canadian with numerous years of investment experience in the American Equity Market and in the Global Commodity Market. He has a B.Com degree from a well respected Canadian university and has experience working in the wealth management industry. He is interested in delving into numbers to analyze companies and markets. He won a couple of international strategy simulation competitions involving decision making through numerical analysis, and also scored in the top 50 on the Bloomberg Aptitude Test (out of nearly 200,000 test takers).

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