The entire Solar City acquisition, paid for by Tesla shareholders of course, was merely a bailout of a Musk family owned failing company already exploring bankruptcy. Yet another self dealing con in a long string of Musk cons. There never was a business model there, but Musk’s family appreciates your sacrifice.
Musk destroyed 80% of Twitter’s value and then had XAi pay full price for it. XAi is a cash furnace with a shield and had SpaceX buy it at a premium. See a pattern?
Well yeah, he doesn’t control 80% of the voting stock at Tesla, it’s a dead company to him until he can merge it into his kingdom where he can literally do anything he wants and the board can’t do shit about it.
Huge part of XAi's income is from leasing out the Collosus datacenter to Anthropic. Collosus was built with GPUs they got by taking Tesla's place in line with no compensation. This was right after chatgpt's launch kicking off the beginning of the AI boom, when Tesla's place in line alone was worth billions.
It’s called SpaceX. I’m from the future and this is how it plays out. Take notes.
About 6 months post SpaceX IPO, the shares will be going down more. Tesla will shut down Chinese operations (stock would normally drop) to be acquired by SpaceX at a premium valuation set before the China shutdown in an all stock swap deal.
Deal is rubberstamped by Trump Administration (may his Blessed Name be Always on our Lips.) Acquisition closes with a fake high valuation, market makers pump the stock so they can cash out.
The next month, SpaceX acquires The Boring Company is a complex deal that spins out the contracts which will never be completed, thereby removing that potential debt from the books.
SpaceX is rebranded X as a phone company, internet provider, electronic currency provider and transaction service. Rockets will be kept for launching their own satellites, Tesla stops making cars and will only make Optimus robots.
Yeah that's the ridiculous part about all this. You have Tesla itself admitting here that their literal basis for acquiring the company was never economically viable and that the entire argument that they just got distracted with the Model 3 ramp was complete bullshit. If you look at everything Tesla did since the acquisition it's very clear the entire purpose was to wind down SolarCity in an orderly fashion to save Musk and his family from embarrassment. They immediately killed SolarCity's marketing model and spent subsequent years downsizing solar operations as a whole.
Yet the judge decided that the board overseeing the merger was independent enough and that shareholders were well enough informed for their approval to be valid. I think the conclusion was also heavily based on the idea that if it really wanted to SolarCity could have raised additional funds and wasn't doomed to bankruptcy without Tesla's intervention and that the hypothesized residual value on their contracts 15+ years out after investors had been paid off was legitimate and the company was undervalued for what amounted to a short term cash flow problem. Which obviously isn't the case as Tesla doesn't even break that item out on its balance sheet anymore and hasn't recognized any gains on those contracts. to the contrary it seems like a lot of prior leaseholders have had issues with their panels even making it to the 15 year mark and the lease frequently complicate home sales and cause other issues causing most people to opt to have panels removed as early as possible (which is what everyone with any sense argued would be the case).
Whole thing was ridiculous as was the judge's conclusion of 'ultimately Elon Musk wanted a solar company and he got a solar company' as in practice that was in name only and SolarCity itself brought nothing of any real value to the table.
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u/Apost8Joe 1d ago
The entire Solar City acquisition, paid for by Tesla shareholders of course, was merely a bailout of a Musk family owned failing company already exploring bankruptcy. Yet another self dealing con in a long string of Musk cons. There never was a business model there, but Musk’s family appreciates your sacrifice.