Tesla (TSLA): SolarCity Vision Becoming Clearer - Baird
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Baird analyst, Ben Kallo, reiterated his Outperform rating on shares of Tesla Motors (NASDAQ: TSLA) after reviewing more details on the Solar City transaction.
Shareholders are likely to approve the merger, and TSLA should benefit from the acquisition through cross-selling opportunities, lower customer acquisition costs, and SCTY's large installation network for solar PV systems, solar roofs, and TSLA's Powerwall.
Importantly, management indicated SCTY will add >$500M in cash to the balance sheet over three years, and continues to expect $150M in cost synergies in year 1.
No change to the price target of $338.
Shares of Tesla Motors closed at $190.79 yesterday.
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Related EntitiesRobert W Baird, Tesla, Definitive Agreement, Ben Kallo
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