News for hackers. Stuff that matters.

A comment on Cash Squeeze at Tesla, SolarCity. Parent comment

Re:Cash Squeeze at Tesla, SolarCity by nissimk on Thursday September 01, 2016 @11:23AM (#12405979)
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.
[ Parent | on HN ]
Re:Cash Squeeze at Tesla, SolarCity by jonknee on Thursday September 01, 2016 @11:47AM (#12406242)
And somehow even with favorable terms Solar City is hemorrhaging cash and has a grim outlook for the future.
[ Parent | on HN ]
Re:Cash Squeeze at Tesla, SolarCity by toomuchtodo on Thursday September 01, 2016 @11:49PM (#12410710)
Sales and marketing expenses. Cut those and SCTY is cash flow positive.
[ Parent | on HN ]
Re:Cash Squeeze at Tesla, SolarCity by jonknee on Friday September 02, 2016 @12:56AM (#12410923)
But then revenue plunges and its value plunges accordingly thanks to negative growth rates.
[ Parent | on HN ]
Re:Cash Squeeze at Tesla, SolarCity by toomuchtodo on Friday September 02, 2016 @01:31AM (#12411047)
Which is where Tesla comes in with its existing marketing and sales channels. And why it's a sound strategy to acquire SCTY.
[ Parent | on HN ]