Jeffrey Goldfarb talks to Christopher Swann about the contrarian and well-rewarded deal announced by SolarCity, where entrepreneur Elon Musk is chairman and biggest shareholder.
You on mosque can be inventor and entrepreneur can seem to do no wrong is trying to apply his magic touch. And today an area that he doesn't really -- that -- very much. His solar city where he's the chairman and just bought a company. And Chris the market just went crazy over this. We'll look at that company any cost 350 million dollars and he got an immediate boost the share price of 900. Million dollars so the magic works pretty much everywhere pretty much in life and that's not surprising thing is he did something rather counter intuitive which is he's he's bought the panel can. Now this has been a positive graveyard. The business that they've seven this -- -- mean he's been in the good part of -- yeah -- which city the biggest shareholder there in Germany. They do installations that help people finance. It -- but he stayed far away from. The panels which has been that's sort of disaster -- part of the appeal of the company's exactly that and I haven't they haven't been in the. Panel area which is suffered from this from a -- -- And he -- companies falling like flies in this particular area giving them the biggest and biggest producer in the world. Yeah they're little suicide Suntech Power I went that went bust in. Twenty team and a about forty companies that died in that twenty trial so why are so excited about the revote which is this this one that he bought yet. It's partly because it's on mosque this thing in the Elon Musk told dust. And that there are some strategic -- -- this festival. A lot of the panels and I think it from China and has been a trade -- brewing tariffs have been imposed. -- mean he took this massive collapse and for me actually ticket that I am actually at risk. And the second appealing aspect about this company's technologies that. Has sent a city that's rooftop installations and that efficiency is at a premium and this produces among the most efficient panels in the world so. On the normal rooftop instead of needing 24 panels -- that you need a team not a -- -- a whole range of the costs for him. Installation man power wiring. But there's obviously much more to it -- transaction. You know and I was strategic logic made -- a little but even that goes against the grain. But we think of Moscow is more of a build their right in the -- -- -- Electric car space rockets he's not a buyer. And you know you've you've -- your column that there's you know there are some real risks in this. Right bulls festival and it's not just the purchase price and he's also going to be after these polls taken out and about 400 million dollars building and you sounds. And that's on top event yet and the research and development costs and he mentioned in the conference -- that he's planning to invest heavily in research and development. -- he's getting into an entirely new and somewhat risky field. -- well markets happy now we'll see if it stays that way we'll be back with more breaking news tomorrow.