Chanos Eviscerates Musk in Short Order, As Shares of $SCTY Tumble After Earnings Catastrohpe

Chanos just highlighted during his #SOHN2016 sales pitch how Elon Musk was nothing more than a factory floor sleeping showman. He described the absurdity of SolarCity and Tesla and how the former would run into funding issues in 2016.

Lo and behold, one week hence, shares of SCTY are swimming lower after a offering investors truly horrendous guidance. For Q2, the company is guiding revenues down to $135-143 mill from $152 mill–sporting a loss of $2.80.

“While the regulatory clarity provided by California, Massachusetts, New Hampshire and New York put many of last quarter’s headwinds behind us, we do not expect to be able to make up for the decline in MW booked in Q1 2016,” the company said in a statement.

Regarding the outlook, Rive said, “Looking ahead, we are recalibrating our outlook for the year after taking into account the regulatory developments that impacted Q1 2016 MW Booked and the impact of an increase in pricing for our commercial business. While the regulatory clarity provided by California, Massachusetts, New Hampshire and New York put many of last quarter’s headwinds behind us, we do not expect to be able to make up for the decline in MW Booked in Q1 2016. In conjunction with the lower MW expected from higher pricing instituted in Q2 2016, we now expect to install 1.0 – 1.1 GW in 2016 as compared to 1.25 GW previously. For Q2 2016 we expect to install 185 MW, representing a decline of 2% year-over-year, largely due to the 14 MW project that was completed ahead of time in Q1 2016.

Shares are down 20% in after-hours.