Lazard makes error in SolarCity analysis: $400 million
This is according to a regulatory filing by Tesla. An analysis by Lazard for SolarCity that indicated an equity value of between $14.75 and $34.00 per share was wrong because it double-counted some of the company's projected indebtedness, according to Tesla's filing with the U.S. Securities and Exchange Commission.
After identifying the computational error on August 18, more than two weeks after the signing of the deal, Lazard realized the valuation range based on its discounted cash flow model was $18.75 to $37.75 per share.
SolarCity and Tesla agreed however that the error would not change their view of the deal, according to the filing. The purchase price, to be paid for with Tesla stock, equated to $25.37 per share. ■