Tesla has confirmed that it will provide more details on the acquisition of SolarCity on Tuesday after market close. The company already made everyone aware of its intentions earlier this month, and now it is just confirming the details, notes Electrek.
Final chance to convince investors
Earlier, there were expectations that Tesla would release more financial details and how it plans to run the combined company, but there was no clarity over the form it would take. However, the company has now made it clear that the announcement will start with a post on Tesla’s blog and on the investor relations website on Tuesday at 4 p.m. Eastern (UTC-4). Next in line will be a Q&A with Tesla’s and SolarCity’s management teams.
Tesla released the following details of the Q&A session in a press release: What: Questions & Answer Webcast to discuss Tesla’s pending acquisition of SolarCity; When: Tuesday, November 1,2016; Time: 2.00 pm Pacific Time/ 5.00pm Eastern Time; Blog: http://ir.tesla.com; Webcast: http://ir.tesla.com (live and replay).
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The deal has been full of controversy and criticism, with some saying that this is not an ideal use of cash, while others are of the view that Tesla will deviate from its core automotive business.
This will be both companies’ last chance to convince investors that they should vote for this merger before the special meetings and vote on Nov. 17. Tesla CEO and SolarCity Chairman Elon Musk feels that SolarCity will have a “neutral” impact on Tesla’s fourth quarter performance.
Tesla remains on analysts’ positive list
Analysts are upbeat on the EV firm as the company posted an increase in earnings, fueled by opex management. FBN Securities’ Shebly Seyrafi maintained his Outperform rating on the stock with a price target of $260. The Palo Alto-based company delivered 24,807 vehicles during the third quarter, a tad above the guidance of 24,500. The company gave a similar guidance for the fourth quarter.
Seyrafi stated, “Gigafactory construction and Model 3 development are on plan to support volume and Model 3 production and deliveries in [email protected] 2017.”
Non-GAAP opex came in at $470.5 million, below the FBN estimate of $561.8 million. According to Seyrafi, it was the main reason for his above-expectations estimate for earnings per share.
The company’s revenue came in at $2.3 billion, up 85% year over year but below the consensus expectation of $2.33 billion. Deliveries were up 114% year over year and 72% sequentially in the quarter. Total vehicle production for the quarter came in at 25,185, up 92% year over year and 37% sequentially.
On Monday, Tesla shares closed down 1.12% at $197.73.