SolarCity Corp. (SCTY) - NASDAQ
  • Today, 8:47 AM
    | Today, 8:47 AM | 3 Comments
  • Sat, Jul. 23, 11:48 PM
    • Tesla Motors (NASDAQ:TSLA) and SolarCity (NASDAQ:SCTY) are close to locking in terms on a merger, according to a fresh report from Reuters.
    • Sources indicate that final discussions and the due diligence process could end within days.
    • It's still unclear if SolarCity will land a go-shop provision which will allow it to press for other bids.
    • SolarCity closed at $26.45 on Friday vs. the proposed buyout range from Tesla of $26.50 to $28.50.
    | Sat, Jul. 23, 11:48 PM | 169 Comments
  • Wed, Jul. 20, 2:11 AM
    • Elon Musk expects a "super majority" of shareholders to back Tesla's (NASDAQ:TSLA) proposed combination with SolarCity (NASDAQ:SCTY) despite investor skepticism about the planned deal.
    • In an interview, Musk said he would include details of the tie-up in a new "master plan" he intends to publish as early as this week.
    • "The most informed investors are highly supportive of the transaction... most just didn't understand how bringing together a car and a solar company made sense from a product standpoint."
    | Wed, Jul. 20, 2:11 AM | 123 Comments
  • Mon, Jul. 18, 8:16 AM
    • SolarCity (NASDAQ:SCTY) says it raised $345M in tax equity from four separate partners during June and July to finance new solar projects.
    • SCTY says it also increased its debt aggregation facility by $110M to $760M and expanded its solar renewable energy credit financing facility in an attempt to lower its financing costs.
    • SCTY says it has raised more than $1.5B in project financing YTD.
    | Mon, Jul. 18, 8:16 AM | 51 Comments
  • Tue, Jun. 28, 9:16 AM
    • Calling the bid for SolarCity (NASDAQ:SCTY) "ill-timed," now former bull Bill Selesky from Argus downgrades Tesla (NASDAQ:TSLA) to Hold from Buy. Tesla is also removed from Argus' Focus List.
    • Should it happen, the deal, he says, pushes out the time needed for Tesla to generate a GAAP operating profit.
    • "While we believe that Tesla has made significant strides in addressing issues concerning high manufacturing costs, contracting gross margins and production shortfalls, we also believe that the proposed acquisition of SolarCity adds a new level of meaningful risk to the operations at Tesla Motors."
    • TSLA's 1.6% premarket gain is about inline with the averages. SCTY +3.05%
    | Tue, Jun. 28, 9:16 AM | 53 Comments
  • Mon, Jun. 27, 5:01 PM
    • The committee of independent directors is made up of Donald Kendall and Nancy Pfund, with Kendall serving as chair. Skadden, Arps has been retained to assist.
    • The two have the exclusive authority to evaluate the Tesla (NASDAQ:TSLA) proposal against stand-alone opportunities and/or other strategic alternatives.
    • Several of the SolarCity (NASDAQ:SCTY) board, of course, have had to recuse themselves from any decision-making on the deal as they're Tesla directors as well.
    | Mon, Jun. 27, 5:01 PM | 66 Comments
  • Mon, Jun. 27, 8:38 AM
    • The price action in SolarCity (NASDAQ:SCTY) suggests the market is placing a very high probability that Tesla's (NASDAQ:TSLA) proposed purchase will be rejected, says Morgan Stanley's Adam Jonas.
    • Formerly a major booster of Tesla, Jonas made news last week when he downgraded the stock in wake of the offer.
    • As much as he's not a fan of the deal, a rejection could be even worse, says Jonas. For one, it could be seen as a change in what to now has been strong shareholder support of Elon Musk (who is on record describing the purchase as a "no brainer").
    • Then there's SolarCity. Potential financial deterioration following a rejected deal could lead to an even more difficult funding environment.
    • TSLA -1.25%, SCTY -1.75% premarket
    | Mon, Jun. 27, 8:38 AM | 137 Comments
  • Mon, Jun. 27, 8:02 AM
  • Sun, Jun. 26, 5:19 AM
    • Two additional SolarCity (NASDAQ:SCTY) board members are recusing themselves from making decisions regarding Tesla's (NASDAQ:TSLA) offer to buy the solar power firm since they sit on the boards of both companies.
    • The announcement by Musk relative Peter Rive and Tesla CTO JB Straubel means the majority of SolarCity's seven-person board will be sitting out the vote on whether to be acquired by Tesla.
    | Sun, Jun. 26, 5:19 AM | 86 Comments
  • Fri, Jun. 24, 2:10 PM
    • Needham solar analyst Edwin Mok sees significant implications for the industry from the Brexit vote, amplifying bearishness on several names.
    • The biggest hit will come for module and inverter makers like First Solar (FSLR -5.3%), along with Chinese makers, including Trina Solar (TSL -4.5%), JinkoSolar (JKS -5.6%), Canadian Solar (CSIQ -10.4%) and JA Solar (JASO -4.1%), he writes. A weaker euro means price impact: "Additionally, if Brexit results in slower demand, it could exacerbate module oversupply just as multiple producers are adding capacity. This in turn could also drive prices lower."
    • A notable exception for Mok is SolarEdge (SEDG -4.5%), for which he maintains a Buy. Still: "The vast majority of [SEDG] sales are priced in the euro. With limited cost infrastructure in Europe as a natural hedge, weakness in the euro would have a direct impact to SEDG’s bottom line."
    • And U.S. firms like SolarCity (SCTY -2.4%), Sunrun (RUN -7.4%) and Vivint (VSLR -4.7%) could benefit with zero international exposure and possibly lower costs of capital.
    | Fri, Jun. 24, 2:10 PM | 27 Comments
  • Thu, Jun. 23, 11:25 AM
    • "While there may be any number of lucid arguments supporting the strategic rationale of a combination, we believe many of the benefits could have been achieved through arm's length/strategic partnership and without the risks inherent in exposing Tesla (TSLA -1.3%) shareholders to the financial and capital markets risk faced by SolarCity (SCTY -1.6%), says Morgan Stanley's Adam Jonas, explaining his downgrade of Tesla.
    • via Brad Ginesin
    • Does SolarCity help Tesla make better cars, he asks. "No ... the success of the Model 3 will be due to factors not related to the ownership of a solar company." Benefits from owning SCTY are "theoretical and very long term."
    • Does SolarCity improve the pace of Tesla's cash burn? "No ... SCTY would exacerbate the cash burn of TSLA even when allowing for cost synergies and initial commercial opportunities." He doesn't see Tesla with positive free cash flow before the middle of 2018. Morgan Stanley's clean tech team sees SCTY with a cash burn of $364M next year and $116M in 2018. That team also downgrades SolarCity to Equalweight from Overweight.
    • Citron's Andrew Left: The Tesla bid represents the "worst of Wall Street."
    • SA's Chris DeMuth: Tesla-SolarCity Fails Economics
    | Thu, Jun. 23, 11:25 AM | 70 Comments
  • Thu, Jun. 23, 7:53 AM
    • Formerly one of the more bullish sell-siders on Tesla (NASDAQ:TSLA), Adam Jonas downgrades to Equal Weight from Overweight following Elon Musk's play for SolarCity (NASDAQ:SCTY).
    • He calls the move a thesis changer as risks outweigh strategic rationale, and SolarCity does not help Tesla make better cars (via Notable Calls).
    • TSLA -1%, SCTY -0.8% premarket
    | Thu, Jun. 23, 7:53 AM | 152 Comments
  • Wed, Jun. 22, 4:06 PM
    • "A shameful example of corporate governance at its worst," says Jim Chanos, commenting on Tesla's (TSLA -10.5%) offer to buy SolarCity (SCTY +3%).
    • He notes SolarCity's bonds yield 20%, suggesting a company in financial distress. The hundreds of millions in cash it is burning through each quarter will now be a burden Tesla owners will have to bear.
    • Consider this, he says: The combined market drop today is greater than the equity value of the deal itself - meaning Tesla shareholders think SCTY stock is essentially worthless.
    • "Finally, it is hard for me to believe that this deal was not being contemplated when Tesla, and Mr. (Elon) Musk himself, sold shares just a few weeks ago."
    • Chanos, of course, is short the stock of both companies.
    | Wed, Jun. 22, 4:06 PM | 148 Comments
  • Wed, Jun. 22, 9:24 AM
    | Wed, Jun. 22, 9:24 AM | 4 Comments
  • Wed, Jun. 22, 8:23 AM
    • Tesla Motors (NASDAQ:TSLA) CEO Elon Musk is holding a a second conference call this morning to add more details on the SolarCity (NASDAQ:SCTY) deal.
    • Musk begins by explaining how a consumer with a PowerWall, solar panels, and car-charging infrastructure will be able to do a single install after making a bundled purchase.
    • "If we didn’t do this, it would make Tesla’s execution harder and worse," he adds.
    • There isn't a great amount of granular detail on Tesla's debt load. "Cash flow covers what’s required with the recourse debt," he maintains.
    • As the Q&A goes on, Musk's insistence that the deal must happen if Tesla and SolarCity are to scale up adds intrigue to what would happen if either board voted down the combination. Just last night, Credit Suisse forecast only a 20% to 40% chance of the deal closing.
    • On Wall Street, perma-bulls like Global Equities are backing the deal wholeheartedly, while Oppenheimer has downgraded Tesla to Market Perform from Outperform. Baird is playing it down the middle by calling out near-term risks for shares, but staying bullish on the long-term Tesla story.
    • TSLA -11.06% premarket to $195.32, nearly unchanged during the conference call. SCTY +14.77% to $24.32.
    • Previously: Tesla proposes to buy Solar City for $26.50-$28.50/share (June 21)
    • Previously: Tesla offer for SolarCity "distracting," "defies common sense" (June 21)
    | Wed, Jun. 22, 8:23 AM | 55 Comments
  • Tue, Jun. 21, 6:54 PM
    • Elon Musk considers Tesla's (NASDAQ:TSLA) potential deal for SolarCity (NASDAQ:SCTY) a "no brainer" that would transform TSLA into "the world's only vertically integrated energy company offering end-to-end clean energy products to our customers," from solar panels and home storage batteries to electric vehicles.
    • SCTY investors like the idea, of course, sending shares +15% AH, but TSLA shareholders clearly are skeptical; TSLA now -11%.
    • CNBC Fast Trader Tim Seymour says the deal's timing of the deal seems "distracting," citing TSLA's struggles to meet sky-high expectations for deliveries and its mass market car.
    • Some back of the envelope math from Ben Levisohn at Barron's points to another dilution - this time to the tune of ~12M shares - after raising money last month for the Model 3 build.
    • "This deal defies common sense," writes Heard On The Street's Spencer Jakab: "Banding together with another cash-hungry business simply because it is also green and may one day make use of Tesla’s batteries may excite some investors and burn short sellers in SolarCity’s stock. But, as Mr. Musk warned about his amphibious wonder car, such harebrained schemes can only float 'for short periods of time.'”
    | Tue, Jun. 21, 6:54 PM | 194 Comments
Company Description
SolarCity Corp. engages in the business of renewable energy services. It offers installation, ongoing monitoring and repair services of solar energy systems in the U.S. The company provides services to homeowners, businesses, schools, non-profits and government organizations. SolarCity was... More
Country: United States