'A bailout for SolarCity': Here's what Wall Street is saying about Tesla's offer to buy the company
That's the general sentiment in much of the analyst commentary we've reviewed since Tuesday, when Tesla announced a bid for the solar-power company.
In a letter, Tesla's board offered to buy all outstanding shares of the SolarCity's stock at $26.50 to $28.50 per share, which represents a 21% to 30% premium. Tesla CEO Elon Musk is SolarCity's chairman.
What analysts said mirrored traders' reaction to the news. Tesla shares dropped by as much as 12%, while SolarCity soared 22%.
Even though both companies would compliment each other in the clean-energy space, analysts wonder whether Tesla should be pursuing this deal as it struggles with production delays and burns through cash.
Here's a roundup of some of the commentary: