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Behind Tesla Carnage, Signs Of Support For Musk's Solarcity Deal


Ron Burgundy
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File photo of Elon Musk, chairman of SolarCity and CEO of Tesla Motors, speaks at SolarCityÕs Inside Energy Summit in Midtown, New YorkSome of Tesla Motor Inc's biggest investors have signaled support for CEO Elon Musk's plan to buy solar power company SolarCity Corp , although the electric car maker's stock cratered on Wednesday, lopping more than the $2.8 billion value of the proposed deal off Tesla's market capitalization. “It’s a natural evolution of their mission to transform transportation into a sustainable business,†said Joe Dennison, a portfolio manager of Zevenbergen Capital Investments, which has about 600,000 Tesla shares, or about 0.4 percent of shares outstanding. It is still early in the process, he said, but “We expect it to go through and believe that most investors who actually own the stock understand management’s long-term vision for the company." That was not the market's broad reaction, sending Tesla's shares down more than 10 percent, and taking more than $3 billion off its market value, which now stands around $28.7 billion.




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