June 22, 2016
CNBC: Chanos: ‘Brazen' SolarCity deal is ‘corporate governance at its worst’
"And if you don't want to believe me, consider this: The combined market drop in the value of both companies is more than the equity value of the deal itself — which means that Tesla shareholders think SolarCity shares are essentially worthless," Chanos said.
The combined market cap of the two companies fell. Generally speaking, that's pretty good news for those shorting both companies.
Some people have characterized Tesla's bid as a punishing blow to those shorting both Musk firms.
SolarCity ended the day up 3.3% but Tesla fell a whopping 10.4%. I haven't seen a "punishing blow" this intense since the cardinal poked her with the soft cushions.
This is not investment advice. I have no positions in either company.
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