SolarCity Corp. (SCTY) - NASDAQ
  • Mon, Jul. 25, 8:47 AM
    | Mon, Jul. 25, 8:47 AM | 10 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, 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
  • Tue, Jun. 21, 5:35 PM
    • Top gainers, as of 5.25 p.m.: SPU +23.1%. SCTY +22.2%. VSLR +6.4%. BCEI +6.0%. NSR +5.3%.
    • Top losers, as of 5.25p.m.: IBN -14.8%. TSLA -9.8%. ADBE -4.2%. UNT -4.1%. HPQ -3.6%.
    | Tue, Jun. 21, 5:35 PM | 2 Comments
  • Tue, Jun. 21, 5:30 PM
    • Solar City (NASDAQ:SCTY) +22.3% AH after Tesla (NASDAQ:TSLA) says in a blog post that it has made an offer to acquire the company; TSLA -10% AH.
    • TSLA proposes an exchange ratio of 0.122x to 0.131x shares of Tesla common stock for each share of SCTY, which represents a value of $26.50-$28.50/share, or a 21% premium over today's closing price.
    • TSLA says its proposal builds on a partnership between the two companies where SCTY uses TSLA battery packs as part of its solar projects.
    | Tue, Jun. 21, 5:30 PM | 496 Comments
  • Mon, Jun. 20, 11:33 AM
    • SolarCity (SCTY +3.4%) is sharply higher even as Barclays downgrades shares to Underweight from Equal Weight with a $20 price target, believing that weaker consumer credit fundamentals and higher interest rates could hurt the company.
    • The firm notes that credit card issuer Synchrony Financial recently predicted that its net charge-off rates would increase by 0.2-0.3 percentage points over the next year; given the trend, investors likely will become more worried about credit quality, concerns that could weigh on SCTY's stock price.
    • Also, Barclays expects the Fed to increase interest rates in September and thinks SCTY's sensitivity to financing costs and the long-term nature of its consumer lease portfolio make the company significantly vulnerable to rate increases.
    | Mon, Jun. 20, 11:33 AM | 46 Comments
  • Thu, Jun. 9, 7:50 AM
    • SolarCity (NASDAQ:SCTY+4.9% premarket after Baird upgrades shares to Outperform from Neutral with a $37 target price on the belief that investors may have overreacted to concerns over regulatory issues, such as NV Energy's recent decision to cut net metering benefits.
    • The firm notes that SCTY recently announced multiple financing transactions, which should help ease concerns over the company's balance sheet and access to liquidity, and it anticipates further project cost reductions to open new markets.
    • Also, Baird believes potential module oversupply could help SCTY reduce system costs in H2.
    • "We believe negative sentiment is overdone on one of the leading U.S. rooftop installers, and think shares are attractive at current levels," Baird writes.
    | Thu, Jun. 9, 7:50 AM | 17 Comments
  • Mon, Jun. 6, 1:51 PM
    • Four days after SolarCity (SCTY +8.4%) officially announced a revamp of its solar loan offering, Credit Suisse's Patrick Jobin asserts "there are genuine advantages to both homeowners and the residential solar development companies" in a shift from solar leases/power purchase agreements (PPAs) to loans, even if "ultimate value creation could be half the potential value realized under the leasing model."
    • Jobin: "We calculate that for a typical customer in California, first year utility bill savings can be ~$261 for a solar PPA and slightly better with $272/yr savings with the loan, but with the loan becoming more advantaged over time as payments are fixed (not escalating) for 20 years. With the potential for 30% more realized savings than from a solar lease by year 5, coupled with the simple proposition that the consumer will own the system free & clear after 10 or 20 years and generate 'free' power, we expect the transition to loans will continue."
    • Also: Deutsche's Vishal Shah issued yet another bullish SolarCity note late on Friday, stating talks with management left him "incrementally more confident that SCTY remains on track to achieve its cost and cash flow break even target set for the year end." He added initial feedback for SolarCity's new loan offering "has been very positive," and that the company "is making good progress in securing financing required to achieve 2016 installation targets."
    | Mon, Jun. 6, 1:51 PM | 59 Comments
  • Mon, May 23, 2:59 PM
    • SolarCity (SCTY +8.9%), Vivint (VSLR +5.2%), and Sunrun (RUN +4.7%) are all posting big gains on a day the Nasdaq is up just 0.3% and the 0.1%. The Guggenheim Solar ETF is up 1.8%.
    • Vivint announced today it has closed a $75M tax equity investment fund with a new (unnamed) investor. The company says the funds will allow it to install more than 45MW of residential solar systems.
    • Meanwhile, Greenbiz reports SolarCity is building a utility-scale system combining solar panels, battery-based energy storage, and a demand response management software system in Hawaii. The system features a 52MW battery, and can send 10MW-13MW to the grid each evening.
    • SolarCity was clobbered post-earnings yet again two weeks ago, after the company cut its 2016 installation guidance to 1GW-1.1GW from a prior 1.25GW (compares with 870MW in 2015). 21.7M shares (31% of the float) were shorted as of April 29.
    | Mon, May 23, 2:59 PM | 27 Comments
  • Tue, May 10, 12:47 PM
    | Tue, May 10, 12:47 PM
  • Tue, May 10, 11:14 AM
    • In accord with SolarCity's post-earnings tumble in last night's postmarket session, shares of SCTY have fallen 25.5% today and nearing 52-week lows.
    • Installation numbers looked good in the Q1 report -- but not much else following the third straight year of guidance cuts, analysts are saying.
    • Patrick Jobin at Credit Suisse has lowered the firm's price target on shares, to $38 from $62 (still 126% upside implied). He's still positive on the stock with an Outperform rating, as he notes the company seems to have to re-prove its business model time and again with various challenges continuing to pop up. The firm expected weak bookings but the cut to guidance was bigger than it expected.
    • Meanwhile, Avondale's Michael Morosi lowered his price target to $30 from $40 and downgraded shares to Market Perform. He's waiting for some strategic clarity as the company may be pivoting to a tack that implies lower growth and market share.
    • The company missed significantly on cost/watt, Morosi notes -- likely driven by taking low-margin bookings out of its backlog, but he's skeptical about costs levering meaningfully in the rest of the year. His lowered target still implies 79% upside.
    • Now read SolarCity: Musk Can't Save This One »
    | Tue, May 10, 11:14 AM | 36 Comments
  • Tue, May 10, 9:16 AM
    | Tue, May 10, 9:16 AM | 1 Comment
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