SolarCity Slumps as Investment Drives Loss: San Francisco MoverChristopher Martin
SolarCity Corp., the second-largest U.S. solar company by market value, declined the most in more than two months after posting a first-quarter loss related to increased investments in rooftop systems.
SolarCity fell 12 percent to $31.44 at the close in New York, the most since March 7. The San Mateo, California-based company’s shares have almost quadrupled since its initial offering in December.
SolarCity invested $138.2 million to install solar systems in the first quarter, up 66 percent from a year earlier, as demand surged for rooftop panels from homeowners and businesses. The company said it’s boosting spending to build projects that will deliver long-term revenue.
The first quarter loss was $31 million, or 41 cents a share, compared with net income of $2.76 million, or 4 cents, a year earlier, SolarCity said in a statement yesterday.
SolarCity installs power systems, often at no upfront cost for customers, who sign decades-long contracts to purchase the power. The company said in January that installations will climb 60 percent to 250 megawatts this year, from 156 megawatts in
For the second quarter, SolarCity expects to install 48 megawatts to 53 megawatts of solar systems, up from 46 megawatts in the first quarter.
First Solar Inc. is the largest U.S. solar company.