In an industry that was generally seen to be fighting, SolarCity experienced great growth between 2010 and 2012. Many other solar start ups were failing-Solyndra, which had received a $535M loan from the U.S. government, was the greatest profile failure, announcing insolvency in September of 2011. Lyndon suggested, “ the investors are hurt so badly from the solar sector. We have confronted that stigma while selling our company to investors." Despite that burn, nevertheless, SolarCity went forward with an initial public offering (IPO) in December of 2012 at an IPO price of $8.00 per share. In approximately 15 states and Districts of Columbia, SolarCity ran by ending of the 2nd quarter, 2014 and boasted 140,000 customers. It commanded 36 percent of the residential solar marketplace but had never posted a gain-in 2013 it had a net loss of nearly $152 million. SolarCity's increase, however, drove the stock price up, hitting a high of $86.14 in February 2014.
The organization’s ongoing dearth of favorable accounting earnings, yet impressive stock returns, left analysts and industry observers wondering: Was SolarCity already earning money on installations such as the Partnership Flip Model or was the company's share price primarily a wager on the future with lower solar setups costs? This case describes SolarCity's business model and summarizes key problems in the solar sector. It considers the tax equity funds, comprehensively narrating the Partnership Flip Model which the SolarCity utilized approximately two third of the funds it had raised by the year 2014. The Partnership Flip Model is represented in Excel spreadsheet that students utilize to comprehend the implications of numerous factors.
SolarCity Rapid Innovation case study solution
PUBLICATION DATE: September 22, 2014 PRODUCT #: SM232-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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