November 17, 2016 - By Ruchi Gupta · 0 Comments
The most recent Tesla Motors Inc (NASDAQ:TSLA) and SolarCity update reveal that the merger is likely to get an affirmative vote even as the rooftop solar industry continue to slow down. Various sector leaders the likes of Vivint Solar Inc and SunPower Corp accentuated the year’s dramatic slowdown in growth while inclining it to virtually flat installations. Research firm GTM Research has reduced the sector’s 2016 expected percentage growth from 23% to 16.5%.
However, there is optimism of having the nation’s top residential solar installer bailed out through the Tesla’s SolarCity $2.6 billion deal. While at this, Tesla’s CEO Elon Musk will on Thursday be asking shareholders of the two companies to vote in his vision of a clean energy powerhouse, which will result in their combination.
The Tesla and SolarCity update is perhaps one of the news that will be making headlines very soon if it obtains an affirmative vote from the stakeholders. It will be another step forward in Musk’s master plan, which outlines the creation of a solar-powered car. It will also be a representation of better things to come in the year 2017 and particularly in the area of next-generation batteries.
However, the investors are not for the deal. They are questioning Tesla’s capability of being able to absorb SolarCity’s hefty debt load. An analyst with CFRA Research Angelo Zino things it is perfect for SolarCity at this point but not for Tesla’s shareholders.
Many reasons may have brought down rooftop solar, the likes of policy changes in the primary states like Nevada and California. Consumer’s exhaustion with the industry’s hostile market approaches may also have played a significant role in the downshift.
But GTM Research Analyst Cory Honeyman says, “We will never see residential solar grow at the rate is has over the last four years.”
However, despite all that which goes in and out about Tesla and SolarCity update, rooftop solar appreciates the remarkable drop in the cost of the technology and innovations, thanks to the likes of home batteries. Meanwhile, Tesla’s stock closed at $183.93 an increase of $0.16 or 0.09%.
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By Ruchi Gupta