Friday, May 17, 2013

Stunning Fact: SolarCity Stock Quadruples Since 2012 IPO

The sun is shining once more on some solar stocks but no more brightly than on SolarCity, another Elon Musk company.  SolarCity completed its initial public offering in 2012 and priced at $8 per share.

Yesterday, SolarCity closed at $35.69 or up more than four times its initial $8 per share price.

Readers of this blog know that I have put a spotlight on SolarCity, as one of the most promising solar companies, because it is solar installation and not solar manufacturing.   SolarCity installs solar systems and benefits from the Darwinian competition among solar cell and module manufacturers that drives down the price of the systems that SolarCity sells.

Simply put, solar manufacturing is where profit goes to die, but solar system deployment is where profits are made.

Here is an analysis of SolarCity's business performance that looks at growth in customers and other metrics:

Over the next 10 years, an enormous amount of solar will be installed across America.  The solar installation business will remain high growth, creating thousands of jobs, and the opportunity for profit, if businesses execute well.

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