There is no doubt that there is something seriously wrong when we consider SolarCity Corp and its Nasdaq presence. Management can’t seem to get it right when it comes to their predictions of how many installations it will do in a given quarter. This is a big problem because what determines their money flow is logistics. If you have a team waiting around that you’re not paying, or if you have to produce things too quickly and pay over times you are loosing money at every turn. Good logistics means good profits and for such a tech dominated industry and company specifically you would think they would be on top of it. The problem is that they only employ the tech sector in terms of their actual devices and engineering rather than applying it to understanding new and burgeoning markets. solarcity_installers

For the myriad of problems Solar City faces, it would be wise to adapt to today’s solar industry and maintain a solid footing in their market position, This would require that they undergo a big shift in terms of management’s thinking something I’m not sure they’re ready to do. Some argue this is a glaring blind spot of their market. 

Loans could fundamentally change the game when it comes to financing for them. It signs up to 20 years contracts with customers and then assumes that customers will then want to renew those contracts for another 10 years which is not always the case. However, the fact that their equipment will be old and outdated by them is an almost certainty. There’s also the annual escalation in contrast which goes against the falling costs of solar energy. That makes a big old difference when it is the default more common than Solar City assumes 10 to 15 years into each contract.

Solar city is in a good position despite all the negativity around them, So much so that they are still positioned for market supremacy. This is because they are positioned to be the top notch go to solar provider for any en devour that Elon Musk tries to do. That is to say that they are positioned to play a huge roll in Tesla Motors, SpaceX and perhaps the most profitable en-devour for them on the horizon is teaming up for the creation of hyperloop one the newest argoHyperloop_cw09.keyproject from the mind of Elon Musk. The thinking behind the hyperloop is actually fairly simple. You reduce the oxygen in a tube to reduce air friction them send a cap-sol that holds both people and cargo at lightning speeds reaching over 760 MPH which hurls them at speeds never known in world.

What makes this so good for Solar City is that the way the hyperloop gets its power is through solar energy. And given that they plan to put their first “small scale” project to connect San Francisco and Los Angeles that is going to take a lot of energy and solar cells. It is going to be interesting to see where Musk goes next and how the hyperloop will affect their business going forward, but we can be fairly certain it will be a favorable en devour for them.

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