Title : The Market, Energy, Political Page, T+25 -- June 25, 2018 -- IN PROGRESS
link : The Market, Energy, Political Page, T+25 -- June 25, 2018 -- IN PROGRESS
The Market, Energy, Political Page, T+25 -- June 25, 2018 -- IN PROGRESS
Tesla
From an earlier post:
SolarCity: An Albatross:This story has been previously posted, but more background at this linked story:
- Tesla owns SolarCity
- the $2 billion purchase came with almost $3 billion in debt
- "huge chunk" of interest coming due soon
- [again, typical article: "huge chunk" not defined; and date coming due was not provided]
- Tesla doesn't guarantee repayment; SolarCity does (this is called non-recourse debt for Tesla)
- but, the SolarCity debt affects Tesla's overall credit rating and impacts borrowing costs
- Tesla has $10 billion of total debt outstanding; $3 billion is non-recourse, mostly Solar City debt
- without SolarCity, Tesla's borrowing ratings might be closer to 5.9% (single B rating)
- with SolarCity rating, a B- rating/Caa1 rating, closer to 7.2%
- story at Fortune through YahooFinance
- SolarCity acquired by Tesla in 2016 for $2.6 billion
- Tesla will close 13 - 14 solar installation facilities in nine states (three regions)
- CA, TX, AZ,
- MD, NJ, DE
- NY, CT, NH,
- SolarCity will end its partnership with 800 Home Depot stores -- generated about half of the division's sales volume (wow)
- in line with 9% workforce reduction that was announced last week
- "We continue to expect that Tesla's solar and battery business will be the same size as automotive over the long term." -- Elon Musk
- the company installed 76 MW of solar in 1Q18; a 64% decline from 214 MW installed two years ago (1Q16)
- more at the link
Thus Article The Market, Energy, Political Page, T+25 -- June 25, 2018 -- IN PROGRESS
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