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Business

Musk ignores concerns, proceeds with SolarCity deal

Opening sequence

Opening sequence

Business

Musk ignores concerns, proceeds with SolarCity deal

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18:14
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COMING UP:Musk ignores concerns, proceeds with SolarCity deal

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Transcript

00:00:00
>> I do feel fairly confident,>> Elon Musk gets his way again. One of his companies, Solar City, agreed to be bought by another of his, Tesla, for $2.6 billion. The price $200 million short of what Musk initially offered when he first announced his buyout plans in late June.
00:00:18
Solar City's agreement pushing ahead Musk's master plan, but the deal still has to be given the go ahead by independent shareholders and concerns from analysts about the deal could make this last obstacle the hardest to overcome. Reuter's Breaking Views reporter Anthony Curry explains.>> Well the problem with the deal is you've got two very different types of things going on.
00:00:39
At least that's what it feels like a lot of the time. So you've got the car company on the one hand, and you've got energy and batteries on the other. And there is an overlap, of course, cuz all of Musk's cars need batteries. And he's gonna grow that, he wants to have 500,000 cars a year being produced by Tesla within 2 years, and last year they produced just 50,000.
00:00:58
It's a huge increase, so they'll need a lot of batteries, they set up a giga factory to do that. But the whole idea of having batteries together with Solar and getting involved in utilities and having an install as well as everything else, it's like well, does this really work?
00:01:14
>> The deal initially launching Tesla shareholders into cries of protest, saying the visionary engineer had pushed the envelope too far. He's been under scrutiny for providing lots of vision.>> I'm just kidding.>> But too little detail.>> Musk talked about having this sustainable energy future plan, and what he thinks by that is we gotta make sure that we have the ability to power everything we use without relying on fossil fuels.
00:01:39
Nothing unique about that, of course, what he wants to do is try and make every step of the chain belong to one company.>> Musk saying doing so will save Tesla $150 million in the first year because of improved manufacturing efficiency and lower sales cost, and will make Tesla a $1 trillion company.
00:01:59
But investors shirking from Musk's vision sending Tesla and Solar City stocks trending down Monday.