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by jaynos 3610 days ago
I agree. I should have referenced market cap to give a useful argument. My thinking may be wrong, but here's what I have:

1. TSLA is close to it's all time high. SCTY is well below it's all time high (Granted, I don't see it going back to $80+ anytime).

2. TSLA market cap (34.5B) is 70% that of Ford (49.3B) or GM (49.7B). I know Ford and GM are probably undervalued and there are many differences between them and Tesla, but this suggests to me that Tesla is overvalued.

3. Solar City market cap is 2.4 billion. Solar City has a market share in the US of 34% (approx). Solar City market cap compared to the rest of the industry makes sense.

4. The Solar Industry is here to stay. Solar City, as the US leader, is not going bankrupt (the Tesla board of directors agrees with me on this or they would not approve the deal). Investments would swing back to SCTY at some point pushing the stock to $40-$50 (or ~4-5 billion in market cap).

1 comments

If anything, Solar City is a (the?) money-making engine for Tesla now. You're correct that your investment is undervalued in the stock split. Contact a good attorney and begin a lawsuit (avoid class-action) against Tesla for this bargain-sale buyout. Makes me wish I had bought SCTY stock for the opportunity to file on my own.