Can shareholders of Tesla really benefit?

DOI

10.2991/icesed-19.2020.6How to use a DOI?

Keywords

Tesla SolarCity mergers; Shareholders; Benefit; Shares

Abstract

Merger and acquisition is normally regarded as an important tool for the enterprise to develop and gain profits. However, is it possible for every company to earn profits through M&A? Probably no. The paper looked at the influences of M&A on shareholders and analyzes through a case study of M&A of Tesla with SolarCity. More precisely, this paper targeted the impact of Tesla’ s acquisition of SolarCity on the benefits of shareholders exclusively from Tesla. It concluded that shareholders exclusively from Tesla would not benefit from the deal. To illustrate the point, three aspects, namely merger motivation, the market’s reaction to the announcement, and the risk that shareholders face, were analyzed in the paper. In the end, the paper revealed evidences collected two years after the merger to support the statement.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Fan Lu
PY  - 2020/01
DA  - 2020/01
TI  - Can shareholders of Tesla really benefit?
BT  - Proceedings of the 2019 International Conference on Education Science and Economic Development (ICESED 2019)
PB  - Atlantis Press
SP  - 227
EP  - 233
SN  - 2352-5428
UR  - https://doi.org/10.2991/icesed-19.2020.6
DO  - 10.2991/icesed-19.2020.6
ID  - Lu2020/01
ER  -