Reuters - Video

EDITION: U.S. | U.K. | IN

9/11

Breakingviews: Musk mystique meets M&A

Wednesday, June 18, 2014 - 03:01

Jeffrey Goldfarb talks to Christopher Swann about the contrarian and well-rewarded deal announced by SolarCity, where entrepreneur Elon Musk is chairman and biggest shareholder.

▲ Hide Transcript

View Transcript

You on mosque can be inventor and entrepreneur can seem to do no wrong is trying to apply his magic touch. And today an area that he doesn't really -- that -- very much. His solar city where he's the chairman and just bought a company. And Chris the market just went crazy over this. We'll look at that company any cost 350 million dollars and he got an immediate boost the share price of 900. Million dollars so the magic works pretty much everywhere pretty much in life and that's not surprising thing is he did something rather counter intuitive which is he's he's bought the panel can. Now this has been a positive graveyard. The business that they've seven this -- -- mean he's been in the good part of -- yeah -- which city the biggest shareholder there in Germany. They do installations that help people finance. It -- but he stayed far away from. The panels which has been that's sort of disaster -- part of the appeal of the company's exactly that and I haven't they haven't been in the. Panel area which is suffered from this from a -- -- And he -- companies falling like flies in this particular area giving them the biggest and biggest producer in the world. Yeah they're little suicide Suntech Power I went that went bust in. Twenty team and a about forty companies that died in that twenty trial so why are so excited about the revote which is this this one that he bought yet. It's partly because it's on mosque this thing in the Elon Musk told dust. And that there are some strategic -- -- this festival. A lot of the panels and I think it from China and has been a trade -- brewing tariffs have been imposed. -- mean he took this massive collapse and for me actually ticket that I am actually at risk. And the second appealing aspect about this company's technologies that. Has sent a city that's rooftop installations and that efficiency is at a premium and this produces among the most efficient panels in the world so. On the normal rooftop instead of needing 24 panels -- that you need a team not a -- -- a whole range of the costs for him. Installation man power wiring. But there's obviously much more to it -- transaction. You know and I was strategic logic made -- a little but even that goes against the grain. But we think of Moscow is more of a build their right in the -- -- -- Electric car space rockets he's not a buyer. And you know you've you've -- your column that there's you know there are some real risks in this. Right bulls festival and it's not just the purchase price and he's also going to be after these polls taken out and about 400 million dollars building and you sounds. And that's on top event yet and the research and development costs and he mentioned in the conference -- that he's planning to invest heavily in research and development. -- he's getting into an entirely new and somewhat risky field. -- well markets happy now we'll see if it stays that way we'll be back with more breaking news tomorrow.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Breakingviews: Musk mystique meets M&A

Wednesday, June 18, 2014 - 03:01

Top News »

Investing 201 »

Arian Foster = BlackBerry? Arian Foster = BlackBerry?

Fri, Oct 25, 2013 - (3:16)

Don’t miss these red flags for IPOs Don’t miss these red flags for IPOs

Thu, Oct 10, 2013 - (2:34)

Copycat currency trading Copycat currency trading

Wed, Oct 02, 2013 - (2:28)

When to dump a winner When to dump a winner

Tue, Sep 24, 2013 - (1:55)

Where gold might again attract Jim Rogers Where gold might again attract Jim Rogers

Thu, Sep 19, 2013 - (2:05)

Why savings interest rates won't budge Why savings interest rates won't budge

Fri, Sep 13, 2013 - (2:09)

Buy local? ETFs try the trend Buy local? ETFs try the trend

Thu, Sep 05, 2013 - (2:42)

The better bond funds The better bond funds

Wed, Aug 07, 2013 - (2:40)

Best bargain in 40 years? European stocks Best bargain in 40 years? European stocks

Thu, Aug 01, 2013 - (2:24)

Invest like an activist Invest like an activist

Fri, Jul 26, 2013 - (2:49)

Money Clip »

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

“Stalking” your dream home - Money Clip “Stalking” your dream home - Money Clip

Wed, Mar 27, 2013 - (2:50)

3 hidden tax deductions - Money Clip 3 hidden tax deductions - Money Clip

Thu, Mar 21, 2013 - (1:33)

Moving Pictures »

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Thu, Jul 03, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)