Elon Musk is, without question, one of the premier innovators in our time. Maybe he sees something the rest of us don’t But, even Steve Jobs was fallible. His first stint at Apple is a perfect example of it. This merger of car company and money losing solar panel maker is ridiculous on almost every level.
After the bell, SCTY warned and cited difficulties in securing financing to fudge their numbers, in lieu of the proposed merger. Hardly anyone buys those stupid panels. The company survives only be securing financing to lease out the panels and they lose money doing it to boot.
If you enjoy the content at iBankCoin, please follow us on TwitterReports Q2 (Jun) loss of $2.32 per share, excluding non-recurring items, $0.19 better than the Capital IQ Consensus of ($2.51); revenues rose 80.7% year/year to $185.8 mln vs the $147.31 mln Capital IQ Consensus.
Preannounced 201 MW installed vs. 185 MW guidance.
Co issues downside guidance for Q3, sees EPS of ($2.55-2.65), excluding non-recurring items, vs. ($2.34) Capital IQ Consensus Estimate; sees Q3 revs of $155-168 mln vs. $173.77 mln Capital IQ Consensus Estimate. For Q3 2016 we expect to install 170 MW, as the softer Q1 2016 bookings feed their way into installation throughput. Driven by the pick-up in bookings we have seen in Q2 and July as well as C&I’s seasonally strongest period, we expect to install between 315 and 415 MW in Q4 2016 (C&I experiencing a significant uptick in MW Deployed including some projects already under construction C&I).
Expect total 2016 MW Installed of 900—1,000 MW (down from 1.0-1.1 GW), with the mid-to-high end of the range assuming an improvement in residential sales productivity. As our infrastructure had been built to handle ~1.25 GW of annual capacity, we will be reducing our cost structure to accommodate our current forecasted volume run rate and positioning ourselves to report one of the lowest Cost per Watt in our history in the fourth quarter of 2016.
Cash balance expected to increase by the end of Q3 2016 (as compared to the end of Q2 2016) and to further increase by the end of Q4 2016 (as compared to the projected closing balance as of the end of Q3 2016)
Being acquired by TSLA for 0.11 TSLA shares per SCTY share.
I just wish the SCTY reps would stop chasing me down at Home Depot. Before their mouths open I bark at them “I’m a renter” 🙂
Is it true the Solar City lease places a lien on the house that must be considered if the house is sold within the lease period? Why would a homeowner commit to a lease payment instead of keeping the option to control electric cost by managing usage instead?
Wouldn’t it be something if the Solar City electronics package turns out to have a random defect resulting in houses burning down? It would be even more something if the Solar City lease payment obligation remained in force after their gear destroyed the house.