SolarCity is getting destroyed after earnings miss
SolarCity is tumbling after reporting worse than expected earnings Monday.
The renewable energy firm lost $2.56 a share in the first quarter, worse than the $2.31 per share loss expected by analysts. Revenues did beat, however, with $122.6 million generated against $110 million expected.
Guidance for the second quarter also came in light. SolarCity projects losses for the second quarter of $2.70 to $2.80 a share against expectations of just $2.13.
The company is notable for a few reasons. First off, it was founded by tech billionaire Elon Musk. Secondly, Jim Chanos of Kynikos Associates announced a short of the company during the summer of 2015. Chanos compared the company's leasing model to subprime lending, leading Musk to respond by buying up the stock.
Following the announcement, the stock is down nearly 18% in premarket-trading to $18.46 a share. The stock closed at $22.51 a share on Monday.
The stock was down 55% for 2016 before the after-hours drop Monday.
Google Finance
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