There's such a thing???

Sure enough, found with Google, and evidently they've been doing this for a couple of years: https://solarbonds.solarcity.com/customer-agreement/

The Solar Bonds I purchase may not be listed or traded on any secondary market or exchange, and even if they are, they may not be actively traded. As a result, I should assume that I may have to hold the Solar Bonds until maturity. Also, because I am purchasing the Solar Bonds directly rather than through a broker or other financial intermediary, it may be more difficult for me to sell my Solar Bonds, even if a trading market is or becomes available.

I suppose if you view them as you should any crowdfunded thing, don't expect anything back, but you're hoping to help something you believe in, that's OK, but....

Am I missing something?

*edit swypo

And, BTW, SpaceX just had a rocket and its payload go ka-boom on a launchpad pre-flight test.... Musk's attention and potentially capital just got a huge distraction.

See also https://news.ycombinator.com/item?id=12405092 , Tesla's lenders did not act favorably towards the merger.

Ah, and see this in particular: https://news.ycombinator.com/item?id=12406715

Math and physics are seldom friendly to "green" efforts.

I don't support the green label on solar panels that are only profitable because of government dole. However, I still believe the methodology for determining risk (internal to SolarCity) to be sufficiently safe (for me to invest). I'm familiar with what they're up to, though.

Could it be the case that a 6.5% rate reflects the risk, but also the difficulty of securing operating funds. e.g. a sweetened deal for those willing to support them.

I'm interested in finance, but not a financier... so, my opinion could benefit from correction.

The reason--at least, my reason--for ripping on "bankers" is because our entire system of money is founded on bonds and thus, debt servitude. No one asked me if I wanted every single dollar to be created in parallel with a debt instrument, and no one asked me if I wanted to have my income taken away to service that debt.

It all comes down to autonomy. People have a choice to purchase Solar City bonds, but our banking system is forcibly imposed upon people by an unelected, private entity.

Please forgive my ignorance on this. I think there is a high potential that SolarCity will do well after merging with Tesla so I see these bonds returning good returns.

If everything goes absolutely swimmingly, you will not make more than 6.5 percent on your investment. They're not going to give the bondholders a tip/bonus/whatever.

If you believe that Tesla + SolarCity is going to be a powerhouse, I'd consider buying the stock instead. Alternately, if you're looking for a 6.5 percent return, there are less risky ways to get it (it's about the expected annual return from a broad index fund).

I'm honestly not sure who these bonds make much sense for. The implied bet is something like "they're not going to do great, so the stock will not rise, but they also will not go bankrupt so I will get my principal back." On the other hand, if you are emotionally invested in the idea of self-driving solar powered electric cars and are willing to tie up some money to make that dream come true...I can see the appeal. (I own a tiny bit of TSLA for the same reason).

Then why offer interest rates many multiples higher than other low-risk investments? Of course they might pay off (in fact, it's probable that they will). But it certainly isn't riskfree, like a savings account.

These bonds are medium risk... you get all of the downsides of when they go bankrupt but none of the upsides of if they become wildly successful.