
Lazard, the financial advisory that advised SolarCity on its US$2.6 billion all-stock sale to Tesla, made an error in its analysis resulting in the solar installer being undervalued by US$400 million, according to a regulatory filing with the Securities and Exchange Commission (SEC) on Wednesday.
Lazard’s analysis calculated SolarCity equity value between US$14.75 and US$34.00 per share; which was incorrect due to double-counting some of the company’s projected indebtedness, the filing reveals.
Try Premium for just $1
- Full premium access for the first month at only $1
- Converts to an annual rate after 30 days unless cancelled
- Cancel anytime during the trial period
Premium Benefits
- Expert industry analysis and interviews
- Digital access to PV Tech Power journal
- Exclusive event discounts
Or get the full Premium subscription right away
Or continue reading this article for free
Two weeks after the transaction was complete, Lazard realised the equity value should have been between US$18.75 and US$37.75 per share; with the actual purchase price Tesla paid equating to US$25.37 per share.
The filing confirms however that both Tesla and SolarCity do not change their view of the deal regardless.