SolarCity and Tesla (1/14)

Since August 2013, this is our sixth blog regarding Elon Musk’s two public companies. The Bloomberg article below from yesterday explains that SolarCity (SCTY) plans to sell bonds to individual investors. The stock was up over 12% today, reaching a new high of $77.24.

SolarCity’s stock was trading under $12 at the beginning of 2013. The stock gained 376% last year, and Tesla (TSLA) increased by 344%. Many of ETF PM’s clients currently have equity positions in both SolarCity (SCTY) and Tesla (TSLA).

SolarCity Plans to Offer Asset-Backed Debt to Retail Investors

By Christopher Martin, 1/15/14

SolarCity Corp. (SCTY), the first U.S. company to sell bonds backed by rooftop solar panels, plans to offer similar products to individual investors.

The company expects to introduce within six months an online system for retail investors to provide debt for SolarCity’s rooftop power plants, according to a statement today.

The system will provide one of the few opportunities for individuals to back renewable-energy projects, which generate steady revenue from selling electricity and may be less risky than equities. The arrangement also provides a new source of funding for San Mateo, California-based SolarCity, said Chief Executive Officer Lyndon Rive.

“The more sources of capital for solar investments, the more competition and hopefully it will lower financing costs,” Rive said in an interview. He didn’t provide details on the potential returns for investors.

Click here for the full article.




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