SolarCity Corp., in the process of being acquired by fellow Elon Musk company Tesla Motors Inc., reported a wider quarterly loss Tuesday as operating expenses climbed sharply.
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SolarCity, known for its innovative no-money-down financing schemes that had spurred a rapid growth in installations, said on Tuesday that the talks with Tesla led to project financing delays of about 30 days.
In that post, Musk first teased his long-term plan to build “stunning solar roofs” with SolarCity’s technology and have them “seamlessly integrated” with Tesla’s home battery storage technology.
However, total operating expenses, which includes ~$29M linked to restructuring expenses, rose to 5M from $176M during the same period a year ago. The company said this month that it installed 201 megawatts (MW) in the quarter, a 6.3 per cent jump from a year earlier. Following the completion of the sale, the executive now owns 137,374 shares in the company, valued at approximately $2,795,560.90.
The solar company has trimmed its growth forecast after a strategic shift in October to focus on profitability, and its shares have slumped by more than half this year. The rule-change means SolarCity will see a substantial dip in pay from their energy panels.
Not a roof with solar panels, mind you.
To become the original provider of this comprehensive clean energy lifestyle, Tesla owner needs to vend not just products, but showcase the pooled company as a new creator of a fresh way of living, with branding and image and marketing that can convince clients of all types to pay big bucks to participate in.
Added Rive: “Once we announce this product, I think it will actually increase the sales”.
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Musk says he sees a “huge” market for the new solar roof, with Rive adding that that five million new house roofs are installed every year in the U.S. alone. The company is the largest installer in Arizona. And that’s not a surprise, given that SolarCity is also backed by Tesla CEO Elon Musk, who earlier in July unveiled his master plan that details combining the clean energy auto maker with the solar panel installer. The market for SolarCity and Tesla’s products are nearly completely dependent on state rule changes. Certainly, Musk has worked hard to help innovate with Tesla’s engineers and inventors to attempt to make the electric vehicle more viable, more user-friendly and more appealing to the wider public. Meanwhile, Tesla’s operations span some 40 countries.
