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Originally Posted by Onlydo2days
Do you still think Solar City's business model won't work because it is basically residential construction and that type of model doesn't really scale out well?
I bought that thesis for awhile but now I do think that a company like that probably is well positioned to take advantage of the growth based on government contracts, regulations, etc. It got a huge spike after the Paris summit but then oil tanked even harder and it is right back down. Does seem as if it won't be just about who can provide the best service/cost to homeowners....
When you say government contracts, that's for big industrial/utility scale jobs. SolarCity does those as well as residential. I think that market is well suited to big companies.
I don't want to predict what happens to their stock prices, but I think they will continue to lose money on the residential installation business. They lose money at prices where I make money. And I or any other small company can offer more options to the customer and do a better job as well.
http://www.marketwatch.com/investing...cty/financials
Not that I know that much about this stuff, but NI = (58.33M) EBITDA = (479.44M) for 2015 doesn't seem so good.
They've certainly bought a lot of market share with that money and they do their part in keeping prices down and money out of my pocket, but, like I said, I can still undersell them, do a better job, and make money.