Musk Talked SolarCity Merger Before Tesla Stock Sale

The transcript discusses the potential merger between Tesla and SolarCity, initiated by Elon Musk and his cousin. It covers the timeline from initial discussions to the stock offering and the hiring of advisors. Legal concerns and shareholder reactions are highlighted, including the drop in Tesla's stock price. The transcript also explores investor sentiment, financial challenges, and the potential bailout of SolarCity by Tesla due to liquidity issues.

What was the initial reaction of Tesla's board to the merger discussion with SolarCity?

• They immediately approved the merger.

• They tabled the discussion initially.

• They rejected the merger outright.

• They were unaware of the merger talks.

Why might the merger between Tesla and SolarCity raise legal concerns?

• The SEC had already banned such mergers.

• The merger was illegal under federal law.

• Shareholders were not informed about the merger before a stock offering.

• The merger was completed without board approval.

What was the market reaction to the merger proposal on the first trading day?

• Tesla's stock price increased by 10%.

• Tesla's stock price remained stable.

• Tesla's stock price decreased by 10%.

• Tesla's stock price increased by 5%.

What is one reason some investors are concerned about the merger?

• The close relationship between Tesla and SolarCity's leadership.

• The merger will not affect Tesla's financial status.

• SolarCity is financially stable and does not need help.

• Tesla's CEO is not involved in the merger.

What financial issue is SolarCity facing that could impact Tesla?

• SolarCity is experiencing rapid growth.

• SolarCity is planning to acquire another company.

• SolarCity is facing liquidity problems and potential default.

• SolarCity has excess cash reserves.