Re:Everyone Despises SolarCity Deal, Except Tesla Shareholders
by tcoppi on Thursday August 04, 2016 @04:53PM
(#12228392)
SolarCity's immediate cash flow looks a lot better when you take away sale and customer acquisition costs, in fact it brings them very close to profitability. It is widely expected that the merger will close that side and bring it closer to Tesla's sales model, which is cheaper per customer acquisition.
It makes sense strategically. I think most of the people complaining about the deal are more concerned with whether it makes sense tactically, since SolarCity is bleeding cash and wasn't expected to survive much longer, and will now be hitched to Tesla, which doesn't have a great cash flow situation either.