SolarCity Corp.(SCTY)- NASDAQ
  • Yesterday, 6:48 PM
    • Noting the substantial spread between SolarCity's (NASDAQ:SCTY) share price and Tesla's (NASDAQ:TSLA) acquisition price, Baird analyst Ben Kallo sees a short-term trading opportunity in SCTY and predicts with an 80% probability that the merger of the two companies occurs.
    • Kallo also thinks SCTY’s recent cash equity sale and positive regulatory developments in Nevada have helped to reduce concerns over the company’s ability to monetize its assets and worries that additional states may use Nevada as a precedent for changes in net metering programs.
    • For the long term, however, Kallo keeps a Neutral rating and $25 price target on SCTY.
    | Yesterday, 6:48 PM | 13 Comments
  • Thu, Sep. 22, 2:49 PM
    • Tesla Motors (TSLA +0.8%) aims to show off its new solar power/battery storage/EV charging system on October 28, according to CEO Elon Musk.
    • The integrated product features a first-of-its-kind solar roof, along with the next-gen Powerwall and an updated EV charger.
    • The Tesla Master Plan Part Deux calls for "stunning" solar roofs with seamless battery storage integration.
    • Shareholders of Tesla and SolarCity (SCTY +2.7%) are expected to vote on the merger some time in October.
    | Thu, Sep. 22, 2:49 PM | 398 Comments
  • Mon, Sep. 19, 12:00 PM
    • Tesla Motors (TSLA +1%) says a series of lawsuits challenging the acquisition of SolarCity (SCTY -1.5%) could delay the closing of the deal.
    • The four separate legal challenges weren't entirely unanticipated, but the company notes in its filing that the potential for an injunction blocking forward motion on the deal is now in the mix.
    • SEC Form S-4/A
    | Mon, Sep. 19, 12:00 PM | 157 Comments
  • Fri, Sep. 16, 2:57 PM
    • A deal between Berkshire Hathaway’s NV Energy (BRK.A, BRK.B) and SolarCity (NASDAQ:SCTY) that will roll back rate hikes for existing rooftop solar customers is approved by the Nevada Public Utilities Commission.
    • The vote was expected after the companies earlier this week asked the PUC to approve an agreement that would grandfather those who signed up to use home solar prior to January under more favorable rates for 20 years.
    • The agreement will protect more than 32K Nevada rooftop solar customers from higher fees that took effect in January.
    | Fri, Sep. 16, 2:57 PM | 18 Comments
  • Fri, Sep. 16, 11:23 AM
    • The Senate Finance Committee and the House Ways and Means Committee have launched a formal investigation into whether solar energy companies improperly received billions of dollars in tax incentives from the Obama administration.
    • The committees sent letters to three companies in the residential solar industry - SolarCity (NASDAQ:SCTY), Sunrun (NASDAQ:RUN) and Sungevity - and four solar utility firms - SunEdison (OTCPK:SUNEQ), Abengoa (NASDAQ:ABGB), NextEra Energy (NYSE:NEE) and NRG Energy (NYSE:NRG).
    • At issue is a Treasury Department policy that gives solar firms a 30% investment tax credit on the cost of acquiring a system, but solar energy developers do not always have the income to use the credits or the funds to buy and install solar energy systems, so they routinely enlist big investors and transfer the tax benefits.
    | Fri, Sep. 16, 11:23 AM | 41 Comments
  • Tue, Sep. 13, 5:36 PM
    • Berkshire Hathaway's (BRK.A, BRK.B) NV Energy, Solar City (NASDAQ:SCTY) and Nevada regulators reportedly reach an agreement to grandfather eligible customers under older, more favorable rates for customers who installed residential rooftop solar systems before this year.
    • The grandfathering agreement will apply to ~32K customers, including those who had a pending application on Dec. 31, 2015; the rates had been raised in December and retroactively applied to existing customers.
    • The deal still must be approved by the Nevada Public Utilities Commission, which is expected to vote on it on this week.
    | Tue, Sep. 13, 5:36 PM | 12 Comments
  • Tue, Sep. 13, 3:36 PM
    • Jim Chanos slams Tesla's (TSLA -1.2%) proposed merger with SolarCity (SCTY -4.9%) as "crazy" and "the height of folly" while outlining his short positions in the stocks at CNBC's Delivering Alpha conference.
    • Chanos calculates that the combined company would burn through $1B every quarter and "constantly need access to capital markets," and says he is baffled by TSLA's reluctance to give SCTY financing while the merger is pending.
    • Chanos contrasts the Elon Musk approach with Amazon's Jeff Bezos, saying "This is the anti-Amazon. What made Amazon great... is that they didn't need capital."
    | Tue, Sep. 13, 3:36 PM | 188 Comments
  • Mon, Sep. 12, 7:59 AM
    • A private investment fund affiliated with Quantum Strategic Partners and advised by Soros Fund Management provided the investment.
    • The transaction also includes a fully amortizing, 18-year loan that was syndicated to five high-quality institutional investors.
    • SolarCity (NASDAQ:SCTY) said last month it faced greater-than-usual delays in closing new project financing commitments due to its takeover talks with Tesla.
    | Mon, Sep. 12, 7:59 AM | 52 Comments
  • Fri, Sep. 9, 2:23 PM
    • Axiom Capital analyst Gordon Johnson reiterates his Sell rating and $7 price target on SolarCity (SCTY -3.3%), and believes Tesla (TSLA -0.8%) shareholders are "less inclined" to approve the merger of the two companies.
    • According to Johnson, the joint form S-4 filed by the two companies suggests that TSLA  “failed to consider whether another solar company was a “better fit" and that Evercore declared SCTY "the most attractive asset for Tesla in the solar energy industry" after no more than three weeks of due diligence.
    • Johnson also believes TSLA is being shut out of the debt market and likely will need to tap the equity market with another $3B capital raise over the near-term.
    | Fri, Sep. 9, 2:23 PM | 322 Comments
  • Fri, Sep. 2, 11:40 AM
    • "Headlines have been dominated by concerns over Tesla's (NASDAQ:TSLA) need for a capital raise and near-term liquidity constraints, but these are not new developments," says analyst Ben Kallo. "We believe that recent pressure is overblown and would be buyers on any weakness."
    • He also takes issue with the idea SolarCity (NASDAQ:SCTY) was headed for bankruptcy prior to Tesla stepping in to buy it. The company, he said, had the ability to tap the equity markets even if the deal stood to somewhat dilutive.
    • Upcoming positive catalysts for Tesla should by its Q3 results and the Sept. 14 end of SolarCity's go-shop period (which he does not believe will result in a better offer). Further catalysts: Ramp of Model X production, additional details about the Model III, expansion of production capacity for both Tesla Auto and Tesla Energy, construction milestones at Tesla's cell/battery factory.
    • Kallo reiterates his Outperform rating and $338 price target, suggesting nearly 70% upside.
    | Fri, Sep. 2, 11:40 AM | 107 Comments
  • Thu, Sep. 1, 3:00 PM
    | Thu, Sep. 1, 3:00 PM
  • Thu, Sep. 1, 9:46 AM
    | Thu, Sep. 1, 9:46 AM | 95 Comments
  • Thu, Sep. 1, 2:23 AM
    • The investment bank that advised SolarCity (NASDAQ:SCTY) on its $2.6B sale to Tesla (NASDAQ:TSLA) made a "computational error" in its analysis that discounted the value of the solar company by $400M, according to a new regulatory filing.
    • Despite the mistake by Lazard, the companies agreed it would not change their view of the deal.
    • SolarCity has until September 14 to actively seek other acquisition proposals, at which time its "go-shop period" ends.
    • SEC Form S-4
    | Thu, Sep. 1, 2:23 AM | 74 Comments
  • Wed, Aug. 31, 5:35 PM
    • SolarCity (NASDAQ:SCTY) says it is disappointed with a decision by Nevada regulators to exclude it from proceedings to decide how existing customers would be compensated for the excess energy their rooftop solar panels sent back to the power grid.
    • Berkshire Hathaway's NV Energy asked the Nevada Public Utilities Commission in July to maintain previous rates for customers with solar systems installed before Dec. 31, 2015, and SCTY last week asked to participate in the proceedings on whether or not to grandfather those customers.
    • The PUC on Monday denied SCTY's request, adding that the outcome of the proceedings would not affect the company's existing contracts.
    | Wed, Aug. 31, 5:35 PM | 12 Comments
  • Wed, Aug. 31, 9:16 AM
    • Tesla Motors (NASDAQ:TSLA) discloses in a filing covering preparations for the SolarCity (NASDAQ:SCTY) merger that it plans to pay out $422M to convertible note holders during Q3. The note payout will drain from Tesla's cash position.
    • The company notes in a section in the filing on future liquidity needs that it plans to raise additional funds by the end of the year, potentially through debt offerings. Those funds will be needed for the Gigafactory expansion and Model 3 manufacturing build-out.
    • SEC Form S-4
    • TSLA -0.25% premarket to $210.81.
    | Wed, Aug. 31, 9:16 AM | 172 Comments
  • Thu, Aug. 25, 11:26 AM
    • The acquisition of SolarCity (SCTY +0.8%) by Tesla Motors (TSLA +0.3%) is on a list of proposed transactions at the Federal Trade Commission that were awarded "early termination" status.
    • The FTC site lists the merger as "granted" on August 24.
    • FTC notification
    | Thu, Aug. 25, 11:26 AM | 67 Comments