SolarCity in Trouble ?

[bobfromnj]

Sounds like SolarCity is not a very financially stable company. This was on the Internet as reported by the NY Times on Monday.

Solar panel installer SolarCity Corp filed with U.S. regulators to raise up to $201 million in an initial public offering. (IPO)
The company's total revenue was $46.6 million in the three months ended June 30, compared with $13 million a year earlier. It said it had an accumulated deficit of $70.3 million as of June 30
In addition, SolarCity said it was notified this month that the Internal Revenue Service is conducting audits of two of its investment funds, including a review of the solar installations that applied for a popular government cash grant program.

"If ... the Internal Revenue Service determines that the valuations were incorrect and that our investment funds received U.S. Treasury grants in excess of the amounts to which they were entitled, we could be subject to tax liabilities, including interest and penalties, and we could be required to make indemnity payments to the fund investors," the company said in the SEC filing

The company is losing money: In 2011, the company had net losses of $73.7 million, up from $47 million in 2010

[peakbagger]

Typical green firm, build up a market share by losing money on every installation, borrow money against current projects and then try to go public so the original VC investors can cash out and stick the common stock investors holding the bag when it all comes undone.

[KRenn]

Sounds like SolarCity is not a very financially stable company. This was on the Internet as reported by the NY Times on Monday.

Solar panel installer SolarCity Corp filed with U.S. regulators to raise up to $201 million in an initial public offering. (IPO)
The company's total revenue was $46.6 million in the three months ended June 30, compared with $13 million a year earlier. It said it had an accumulated deficit of $70.3 million as of June 30
In addition, SolarCity said it was notified this month that the Internal Revenue Service is conducting audits of two of its investment funds, including a review of the solar installations that applied for a popular government cash grant program.

"If ... the Internal Revenue Service determines that the valuations were incorrect and that our investment funds received U.S. Treasury grants in excess of the amounts to which they were entitled, we could be subject to tax liabilities, including interest and penalties, and we could be required to make indemnity payments to the fund investors," the company said in the SEC filing

The company is losing money: In 2011, the company had net losses of $73.7 million, up from $47 million in 2010

Their whole business structure seems to built on a house of cards, with these audits it is certainly a valid long-term financial concern. Their pricing has dropped down considerably this year as they've prepared for the IPO and as the Treasury has started cracking down on excessive fair value estimations for the systems that were sold. There was one company that was leasing systems for around $7 a watt but trying to claim $12 a watt for tax credit and depreciation purposes, it did not go over well for them at all. They're all having to adjust their pricing and the ones I'm most concerned about are those whose entire business model revolves around solar leasing and nothing else.

[kieranmullen]

The panels are always sold at a premium even for those like me that lives 3 miles away.

[Sunking]

what is SolarCity ?

Installation Contractor

[inetdog]

Installation Contractor

Looks like coreseo has vanished without a trace.... (like a matrix?)