Why SolarCity Shares Got Brighter

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of newly public SolarCity (NASDAQ: SCTY  ) were shining brighter, rising as much as 17% today after bumping its growth estimates for 2013.

So what: SolarCity, another project of Tesla founder Elon Musk, said that it expected its rooftop installations to jump 60% in 2013, to 250 megawatts. 2012 installations also topped expectations, coming at 156 MW over projections of 146. Unlike other solar companies, SolarCity does not manufacture solar panels, but leases them to homes and businesses, often charging a lower rate than standard electric utilities. Essentially, the company is a solar utility.

Now what: A hike in guidance always gets three cheers from the market, and with such a new stock the response is unsurprisingly even stronger. It's still very early in the SolarCity story. The company is not yet profitable, but shareholders can't argue with a 60% growth rate. The business model is untested, but for fans of Elon Musk and believers in solar in general, this stock is worth a closer look. Unlike much of the solar industry, the rapidly increasing supply favors SolarCity, providing toward its bottom line. Keep tabs on this developing story by adding it to your Watchlist here.  

Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2179613, ~/Articles/ArticleHandler.aspx, 9/27/2016 4:41:40 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,228.30 133.47 0.74%
S&P 500 2,159.93 13.83 0.64%
NASD 5,305.71 48.22 0.92%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes