Elon Musk, not again?! Ever since the announcement of the merger deal between Solar City (SCTY) and Tesla (TSLA), Elon Musk has been under accusation that he is trying to salvage Solar City by merging both companies (which he himself appears to be the largest shareholder for both entities). And now, here comes another wave of trouble for him, which left shareholders and the figurehead clueless on what the next step should be. Lost in the midst of darkness, will the real life Tony Stark be able to hold his stance and venture forward in all glory and power? Or will this be the end of Ironman’s era as he struggles to climb out from this black hole?
Falcon 9 rocket which was scheduled to launch on Saturday with plans to put an Israeli satellite into orbit, exploded in Florida on Thursday morning during a routine test firing. The loss of Falcon 9 rocket had cost SpaceX a $200 million payload. What’s more, it wasn’t the first time that the SpaceX rocket blew up. This horror is preceded by the Securities and Exchange Commission (SEC) filing by Tesla on Wednesday that the company is hustling to pay $422 million to its bondholders in the third quarter. On top of that, they would have to raise additional funds by the end of this year to support the merger deal as SolarCity is engulfed in millions of debts, not to say Tesla isn’t. Bad fortune doesn’t only end here! Elon Musk still has to deal with a government investigation after a fatal crash of a Tesla Model S in Florida months earlier.
All these negative claims have contributed to the fall of Tesla stock by 5.2% to close at 200.77 yesterday (Thursday), barely sitting on the lowest priceline since June 28. In relation to that, SolarCity stock saw a big drop to 18.78, decreasing by 9.1% to its lowest point since May 13. All those gains came to naught! What a pain to Elon!
The explosion of Falcon 9 rocket, which destroyed both the rocket and its cargo (AMOS-6 satellite), disrupted Mark Zuckerberg’s plan to provide internet coverage to many entrepreneurs and people in Africa as a result. Following the explosion, Zuckerberg expressed his disappointment but he remained committed to providing full internet coverage in Africa, by working closely with local partners and Eutelsat.
NASA jumped into the buzz by tweeting supportive words to back SpaceX up. They also reassured that the nearby launch planned for Sep 8 using OSIRIS-REx will be on schedule and the supplies on NASA station are sufficient for the moment.
Lazard Ltd, the investment bank that is responsible for the sale of SolarCity Corp to Tesla Motors Inc, mistakenly double counted some of the company’s projected indebtedness and underreported the value of SolarCity by $400 million. The error was reported to stem from the result of a computational error “in certain SolarCity spreadsheets setting forth SolarCity’s financial information that Lazard used in its discounted cash flow valuation analyses” according to the filing. With the miscalculation, Tesla is thus expected to pay more for the acquisition of SolarCity. The revalued purchase price, to be paid with Tesla stock, amounted to $25.37 per share.
As Ironman mentioned, “Well, performance issues, it’s not uncommon.” Let’s hope Tesla, SolarCity and SpaceX power up in due time.