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The entire solar city enterprise is based on "sophisticated financial engineeriing." They push solar lease and PPA deals on customers which are then securitized
by nissimk 10y ago
The entire solar city enterprise is based on "sophisticated financial engineeriing." They push solar lease and PPA deals on customers which are then securitized and sold to investors. Both sides of these deals (solar customers and abs investors) accept terms that benefit solar city at their expense. If it's not subprime 2.0 then it's subprime 3.0.
- jonknee 10y agoAnd somehow even with favorable terms Solar City is hemorrhaging cash and has a grim outlook for the future.
- toomuchtodo 10y agoSales and marketing expenses. Cut those and SCTY is cash flow positive.
- jonknee 10y agoBut then revenue plunges and its value plunges accordingly thanks to negative growth rates.
- toomuchtodo 10y agoWhich is where Tesla comes in with its existing marketing and sales channels. And why it's a sound strategy to acquire SCTY.