Re:Cash Squeeze at Tesla, SolarCity
by dragontamer on Thursday September 01, 2016 @12:48PM
(#12406833)
> I don't think they're buying solar city, isn't it a pure stock swap?
Yes, but SolarCity is losing $300 million per quarter right now. Who do you think will pay that bill?
Tesla will, now that they "purchased" it. In fact, some companies sell themselves for for NEGATIVE dollars (aka, we'll pay you to take this failing business off our hands). Becoming the "owner" of a failing company means that you now have to pay for it.
Yes, but SolarCity is losing $300 million per quarter right now. Who do you think will pay that bill?
Tesla will, now that they "purchased" it. In fact, some companies sell themselves for for NEGATIVE dollars (aka, we'll pay you to take this failing business off our hands). Becoming the "owner" of a failing company means that you now have to pay for it.