Hacker News Reader

The entire solar city enterprise is based on "sophisticated financial engineeriing." They push solar lease and PPA deals on customers which are then securitized and sold to investors. Both sides of these deals (solar customers and abs investors) accept terms that benefit solar city at their expense. If it's not subprime 2.0 then it's subprime 3.0.

View on HN

And somehow even with favorable terms Solar City is hemorrhaging cash and has a grim outlook for the future.

Sales and marketing expenses. Cut those and SCTY is cash flow positive.

But then revenue plunges and its value plunges accordingly thanks to negative growth rates.

Which is where Tesla comes in with its existing marketing and sales channels. And why it's a sound strategy to acquire SCTY.

Reply on news.ycombinator.com