SolarCity is tanking in the after-hours session after it reported earnings.
SolarCity’s share price was last down about 15.9% in the after-hours session.
The company posted a loss of $US2.10 per share for the third quarter. Analysts had expected the company to post a loss of $US1.95 per share. Revenues came in at $US113.9 million versus analyst estimates of $US111 million.
In its shareholder letter, the company said that it sees year-end installations below the low end of guidance.
Based on our monthly installation run rate exiting the quarter and the growth in residential capacity we have already experienced in October, we are estimating installations of 280 to 300 MW in the fourth quarter. This would represent year-over-year growth of 58%-69% and would translate into full-year 2015 installations of 878-898 MW. This is below the low end of our prior annual guidance as we are cognisant of the inherent uncertainty in the record amount of commercial installations we have planned in December, particularly in light of potential weather-related disruptions and the holiday season.
SolarCity has been a target of short-seller Jim Chanos.
Back in August, Chanos, the founder of Kynikos Associates, said that he thinks SolarCity’s business model is similar to that of a subprime financing company.
SolarCity installs solar panels on residential and commercial buildings. The company was founded by Peter and Lyndon Rive, and Elon Musk, their cousin, is chairman.