Tesla ended the week down 12% after proposing to buy SolarCity for $2.5-$3 billion. SCTY ended the week well below the proposed offer price. The market is telling us this deal is no good. Some in the media called it a “bailout” for SCTY. Just how bad is this deal? We crunch the numbers and show that, even in the most optimistic cash flow scenario for SCTY, Tesla should pay no more than $332 million, or $3/share for SolarCity, which is 89% below the midpoint of the proposed price range.