SolarCity says Tesla talks delayed closing project financing
On the same day, SolarCity said installations rose 6.3 percent to 201 megawatts (MW) in the second quarter ended June 30. It, however, cut its full-year installation forecast for a second time by 100 MW to 900-1,000 MW, citing lower residential bookings in the first half of the year.
Solar panel installer SolarCity Corp , which recently accepted Tesla Motors Inc`s $2.6 billion takeover offer, said it experienced greater-than-usual delays in closing new project financing commitments due to the takeover talks.
Tesla first made an offer for SolarCity, which is backed by Tesla founder Elon Musk, on June 21 as part of Musk`s ambitious plans for a carbon-free energy and transportation company. The solar company accepted the offer on Aug. 1.
On the same day, SolarCity said installations rose 6.3 percent to 201 megawatts (MW) in the second quarter ended June 30. It, however, cut its full-year installation forecast for a second time by 100 MW to 900-1,000 MW, citing lower residential bookings in the first half of the year.
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.
Several financings expected in June actually closed in July, and while this negatively impacted cash balance at the end of the second quarter, it is expected to have a positive impact at the end of the third quarter, SolarCity said.
The company also reported a smaller-than-expected loss for the quarter as the rise in installations helped revenue surge 80.7 percent to $185.8 million. (http://bit.ly/2b4q8qV)
Net loss attributable to shareholders more than doubled to $55.5 million, or 56 cents per share, from $22.4 million, or 23 cents per share, as expenses jumped 51 percent.
On an adjusted basis, the company posted a loss of $2.32 per share, while analysts on average were expecting a loss of $2.44 and revenue of $146.08 million, according to Thomson Reuters I/B/E/S.
The company, which has been burning through cash, has come under pressure from rivals offering low-cost solar energy from utility-scale installations, and because some state governments have reined in subsidies that encouraged rooftop solar.
In a bid to stay relevant, SolarCity in May introduced a set of services for utilities, including development of solar power plants, battery storage and other grid planning resources.
However, the company said late last year it would now slow its pace of growth to focus on generating cash.
SolarCity`s shares were up 0.2 percent at $24.60 in extended trading on Tuesday. Tesla`s stock swap offer had valued SolarCity at $25.37 per share.
Up to Tuesday`s close, the stock had gained about 16 percent since Tesla made its offer in June.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
10:49 AM IST