This is your SolarWakeup for August 18th, 2016

Don’t read it as a negative headline, this is a positive move to make sure the business is set up for the right path forward. SolarCity had to move their guidance based on market conditions and therefore ensured that their overhead was correctly aligned with the goal of nearly 1GW of homes this year. At the same time, the company announced a capital raise in the form of a bond at 6.5% for up to $124million which should give it enough capital to get to the Tesla acquisition. In Q2, SolarCity spent over $250million in operating expenses which is a staggering amount but take your business and extrapolate it to 150,000 homes in a calendar year and see what you think.

Opinion

Have a great day!

Yann