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Tesla investment taking into account election results...

Discussion in 'Tesla, Inc.' started by zambono, Nov 10, 2016.

  1. zambono

    zambono Active Member

    Mar 1, 2016
    I think Tesla as an automotive and battery company won't be affected much. Since credits for Tesla vehicles are set to expire in the near future due to hitting the 200k mark in my opinion there isn't much downside there. On the other hand if Tesla does purchase Solar City that could be quite a thorn if the 30% installation credit is removed or not extended. One just has to travel between states that have pro solar stances and those who don't to see the vast difference in installations. A great example is between MD and VA. The price of an installed solar array would have to come down by 30% to make up the difference and a lot of the cost now is made up by labor and not necessarily the panels themselves. I think Tesla is currently oversold due to the election results but only if the solar acquisition doesn't go through.
  2. T3slaTulips

    T3slaTulips Member

    Jul 26, 2016
    Holland, Michigan
    Can Solar City (Tesla) sell solar roofs to non-US customers?
  3. electracity

    electracity Active Member

    Jun 8, 2015
    The ITC was extended with bipartisan agreement. It was unlikely to be extended again, but is also unlikely to be repealed. It is state incentives (net metering) that drives residential sales in conjunction with the ITC.

    Tesla selling solar instead of PPAs means that business can be judged by GAAP profitability. As long as Musk iw willing to size solarcity activity to provide GAAP profitability, there isn't too much long term risk.

    Trumps election doesn't change the fact that the majority of Americans support renewable energy, including an increasing number of conservatives.
  4. Waiting4M3

    Waiting4M3 Active Member

    Apr 13, 2016
    San Jose, California
    Solar City is actually in a better position compared to most of its US peers. The leasing model that many have pointed to as a short term cash flow problem for Solar City, those contracts now provide stable long term income that is shielded from any future changes to the ITC.

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