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Elon Musk's Tesla, Inc. has been having some problems recently. But one easy-to-overlook problem is the debt incurred by its SolarCity subsidiary:
But 16 months after Chief Executive Officer Elon Musk kicked up controversy by acquiring the solar-panel installer founded by two of his cousins, its obligations are a strain on Tesla's finances. The $2 billion purchase came with a $2.9 billion debt load, and a chunk of that is soon coming due. That's bad timing for a company churning through about $6,500 a minute and trying to stave off the need for another capital raise. "SolarCity debt may not be the immediate cause of Tesla's problems, but it certainly isn't helping right now," said Alexander Diaz-Matos, an analyst at credit research firm Covenant Review LLC.
[...] Tesla's debt runs the gamut -- convertible bonds, promissory notes, term loans, cash-equity debt, asset-backed securities. Most of the total is tied to Tesla the automaker. But the energy unit, which includes the solar business, accounts for 27 of the 29 maturities set to come due through 2019.
[...] In recent months, Tesla's solar business lost the residential-solar throne to rival Sunrun Inc., a San Francisco-based installer with a market capitalization about half the SolarCity purchase price. Tesla ceded market share as it attempted to boost energy-unit profitability and scrapped SolarCity's costly door-to-door retail sales strategy. That was a smart move, according to Ross Gerber, co-founder of Gerber Kawasaki Wealth & Investment Management, which oversees more than $10 million in Tesla shares and options. He criticized the SolarCity deal but is still bullish on the company and Musk. "SolarCity was probably going to go bankrupt," Gerber said.
[...] For his part, Musk hasn't wavered from his commitment to turn Tesla into a one-stop shop selling solar panels to capture power, devices to store the energy and cars that can be charged in the garage. The company started producing photovoltaic glass tiles in December at a factory in Buffalo, New York, and has begun selling solar at some of its own stores and through retailer Home Depot Inc.
At least Tesla production is higher than ever.
(Score: 3, Interesting) by anubi on Saturday April 07 2018, @07:51AM (1 child)
Yeh, I remember talking to some reps too... I could never seem to get past their need for all this customer-lock-in and businesstalk and get down to purchase and installation.
I have this big outdoor patio, that needs replacing. I wanted them to simply replace the patio, and design it for solar panels, so that I did not have to mess with drilling any holes in my house roof. So what if I have a patio big as the house? I want to be able to access below panel for wiring maintenance. What I wanted them to do was install the panels in such a way I got the raw panel power... I did NOT want any sort of "grid tie". I had full intention of storing any excess electrical energy as thermal, as in ice bank, transferring heat by a propane-based heat transfer refrigeration loop - using a maximal power point transfer controller to the refrigerant pump ( three phase BLDC motor ).
I was to take full responsibility that my "invention" would work. I know it will work if I build it. I have been doing refrigeration long enough to know what will work and what will not.
I know I will have to build the MPPT controller. But I do these things. The idea some technical thing does not yet exist does not scare me. As long as I know how to make one.
I could not get to first base with the salespeople. One trick pony.
"Prove all things; hold fast that which is good." [KJV: I Thessalonians 5:21]
(Score: 0) by Anonymous Coward on Saturday April 07 2018, @12:36PM
The sales reps are trained monkeys who have been trained to talk to a certain demographic to which you do not belong: The proles.
When you start talking about designing a novel system, they don't have a script.
Consider emailing Tesla about what you want to do, and let them know that they need a department of engineers who are willing to work with customers like you to customize the system.