Canadian Solar CEO deserves some shareholder shade 11 Dec 2017 Shawn Qu is offering a 7 pct premium to take the renewable-power firm private. It’s a cutthroat industry. But medium-term demand is strong. And Canadian Solar stock surged more than two-fifths this year. Investors should have no qualms forcing Qu to put more energy in his bid.
Eager shareholders make Elon Musk too cool to fail 17 Nov 2016 Tesla owners have backed the CEO's quixotic $2.6 bln bid for Solar City. He now faces an epic 2017 juggling act of making the merger work while driving for ambitious production targets. Mistakes could fell other bosses, but indulgent investors are likely to give Musk a pass.
Deal math stumps rocket scientist Elon Musk 1 Sep 2016 Lazard spotted a $400 mln error in a SolarCity valuation used for its $2.6 bln sale to Tesla. The Musk-orchestrated deal already is fraught with controversy over governance, finances and industrial logic. If anyone should know how important basics are, it's an acclaimed engineer.
Cox: Iron Man Musk wages war on too many fronts 19 Jul 2016 Like the film superhero modeled after him, Tesla's boss is taking on the world. Fighting regulators, Warren Buffett, industries and the laws of physics means Musk can't afford to alienate investors. Dropping a proposal to buy SolarCity could strengthen his next master plan.
SolarCity governance torched by bid mini-committee 28 Jun 2016 The clean-energy company could find only two directors independent enough to assess Tesla’s $2.8 bln takeover offer. And one of them is a venture capitalist whose firm has backed Elon Musk’s companies. This lack of proper board engineering shortchanges SolarCity shareholders.
Musk’s clean-energy deal runs on fossil governance 22 Jun 2016 The entrepreneur may see possibilities from uniting Tesla and SolarCity that others are missing. They seem, though, to share little beyond big ambitions, cash outflows and stakes owned by Elon Musk. Easier to spot are similarities to a dreadful mining and oil merger from 2012.
Tesla’s bid for SolarCity is mad science 21 Jun 2016 Elon Musk’s electric-car maker has offered to buy the solar-panel installer he also backs for up to $2.8 bln. The idea of a renewable-energy roll-up is at best way early and at worst wild. It looks like a way to boost SolarCity’s languishing stock at the expense of Tesla’s.
Batteries will short-circuit old business models 16 Jun 2016 Cheap, powerful batteries are almost a mass-market reality. The U.S. storage market could grow 45 pct a year, as prices plunge. It’s great for green energy suppliers, and those who like clean air - but less so for old-school utilities, and possibly makers of batteries themselves.
SunEdison burns new financial fad to a crisp 18 Apr 2016 The once high-flying solar company has engineered itself to the verge of bankruptcy. Its tantalizing but risky business model relied on selling assets to tax-advantaged spinoffs. So-called yieldcos may disappear over the horizon but the sun never sets on shortsighted greed.
Foreign minnows resist opaque U.S. penalties 24 Feb 2016 An Andorran bank has managed to erase its money-laundering black mark. Last year, the Chinese-backed owner of a U.S. wind-farm project won a settlement with D.C. over the secretive CFIUS group’s block on its activities. Overseas Davids can occasionally slay Washington Goliaths.
Warren Buffett’s solar eclipse will be fleeting 11 Jan 2016 A Berkshire Hathaway utility won a battle over Nevada rates for solar-panel users, prompting Sunrun and Elon Musk-backed SolarCity to pack up. The state’s relatively small 3 pct share of the U.S. market, along with broader industry momentum, means sun power should keep shining.
Unlikely activist rides against inbred energy deal 2 Dec 2015 David Tepper usually sticks to distressed debt. But the mass of potential conflicts behind SunEdison offshoot TerraForm’s bid for Vivint Solar assets has spurred the boss of hedge fund Appaloosa to change horses and take a 9 pct stake. It may augur greater scrutiny for the sector.
Blackstone solar exit plugs into twin deal fads 20 Jul 2015 Stephen Schwarzman’s firm is selling panel-installer Vivint for $2.2 bln after a sizzling IPO last year. Buyer SunEdison will cover part of the 52 pct premium with an asset sale that may pay fat dividends. It will take more than a trendy industry and structure to recoup the price.
Tencent dredges Hong Kong’s murky depths 24 Jun 2015 The tech giant is buying into Mascotte, an HK investment group mainly notable for a disastrous solar-materials acquisition. Financially, the $97 mln deal hardly matters for the $191 bln Tencent. But off-topic, unexplained moves like this should concern outside shareholders.
SoftBank’s solar ambitions fly close to the Son 23 Jun 2015 Masayoshi Son has pledged to invest $20 bln in solar energy in India with partners Bharti and Foxconn. The country’s energy needs are clear but synergies with the Japanese group’s internet businesses look dubious. Shareholders can only hope the board clips the chairman’s wings.
Solar upstarts and utilities head for uneasy truce 15 Dec 2014 The soaring popularity of solar panels in the U.S. cuts carbon emissions but upsets utilities trying to make a return on grid investments. The industry’s attempts to slap fees on solar users sparked uproar in 2014. A new cost-sharing approach may take the heat out of the debate.
Elon Musk applies his magic touch to M&A 18 Jun 2014 The $350 mln acquisition of panel maker Silevo added $900 mln to SolarCity’s market value. It’s an investment in an efficient technology and a hedge against rising import tariffs. Manufacturing, however, is the riskiest part of solar. And Musk is a more proven builder than buyer.
First Solar’s technology may help it eclipse China 20 Mar 2014 Advances in making energy cells more efficient could give the U.S. panel manufacturer a price edge over Middle Kingdom rivals like Trina and Yingli. The Chinese still lead the market with products made from low-cost materials. But First Solar may soon get its time in the sun.
Total’s solar boast may prove short-lived 17 Mar 2014 The French oil giant’s CEO has bragged about the profit made on a $1.5 bln stake in SunPower. But that’s hardly the benchmark if Total’s aim is to build a long-term solar business. Moreover, the panel maker’s rich valuation and dimming prospects could soon weigh its shares down.
China’s first bond default will hit in three waves 6 Mar 2014 If Chaori Solar fails to pay interest on March 7, as expected, what then? Investors will be deprived of cash, banks will have to mark down some of their holdings, and new issuers will have to pay more. Though a default is overdue, the aftershocks should not be underestimated.