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Tesla (TSLA) Completes Acquisition of SolarCity for $2.6B
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Tesla Motors, Inc. (TSLA - Free Report) completed the acquisition of SolarCity Corporation on Nov 21. Shareholder approval for the merger was received last week. Owners of nearly 85% of the outstanding Tesla shares voted in favor of the deal.
On Aug 1, 2016, Tesla announced the deal to acquire SolarCity for $2.6 billion in an all-stock purchase. SolarCity stockholders will receive 0.11 Tesla shares for each stock of SolarCity.
Tesla hopes that the acquisition will benefit both companies by increasing manufacturing efficiency and lowering customer acquisition costs. The company projects savings of $150 million in the first year for the combined corporations. Tesla also believes that this acquisition will help both the companies to expand their market more effectively and efficiently, which would not be possible individually.
However, some investors and shareholders believe that the addition of SolarCity’s debts and cash outflows will increase the strain on Tesla’s financials.
Tesla currently carries a Zacks Rank #3 (Hold). Some better-ranked auto stocks include America's Car-Mart Inc. (CRMT - Free Report) and Rush Enterprises, Inc. (RUSHA - Free Report) .
Rush Enterprises, carrying a Zacks Rank #2 (Buy), has a long-term expected growth rate of 15%, compared to the industry average of 13.20%.
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Tesla (TSLA) Completes Acquisition of SolarCity for $2.6B
Tesla Motors, Inc. (TSLA - Free Report) completed the acquisition of SolarCity Corporation on Nov 21. Shareholder approval for the merger was received last week. Owners of nearly 85% of the outstanding Tesla shares voted in favor of the deal.
On Aug 1, 2016, Tesla announced the deal to acquire SolarCity for $2.6 billion in an all-stock purchase. SolarCity stockholders will receive 0.11 Tesla shares for each stock of SolarCity.
Tesla hopes that the acquisition will benefit both companies by increasing manufacturing efficiency and lowering customer acquisition costs. The company projects savings of $150 million in the first year for the combined corporations. Tesla also believes that this acquisition will help both the companies to expand their market more effectively and efficiently, which would not be possible individually.
However, some investors and shareholders believe that the addition of SolarCity’s debts and cash outflows will increase the strain on Tesla’s financials.
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Tesla currently carries a Zacks Rank #3 (Hold). Some better-ranked auto stocks include America's Car-Mart Inc. (CRMT - Free Report) and Rush Enterprises, Inc. (RUSHA - Free Report) .
America's Car-Mart has witnessed positive estimate revisions over the last seven days. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Rush Enterprises, carrying a Zacks Rank #2 (Buy), has a long-term expected growth rate of 15%, compared to the industry average of 13.20%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research.See these stocks free >>