The solar industry has always been a dicey niche market. They are the ups and downs of a new market trying to find its place in the energy portfolio. Great article.
SolarCity Delays IPO, Likely To Lower Price
San Jose Mercury News | By Dana Hull Posted: 12/12/2012 11:19 am EST | Updated: 12/12/2012 2:49 pm EST
SAN MATEO — In a worrisome sign for the cleantech sector, SolarCity postponed its IPO plans late Tuesday, perhaps to reduce the price of shares below its original range.
The delay came after SolarCity Chairman Elon Musk, the CEO of Tesla, made the unusual move of stepping in to buy $15 million worth of shares, or 12 percent of the total offering. Musk’s willingness to put more skin in the company he helped found was intended to boost investor interest.
It wasn’t clear Tuesday evening if the IPO is simply being delayed for a day or two or if there are more serious problems that could lead the company to shelve plans to go public. SolarCity CEO Lyndon Rive could not immediately be reached for comment, and calls to the company’s press office were not returned.
Solar companies, particularly manufacturers, have been battered for months. The “solar curse” began with the bankruptcy of Fremont solar manufacturer Solyndra in 2011, which cast a long shadow over the industry. In April, Oakland-based BrightSource Energy canceled its IPO plans at the final hour.
Go there and read. More tomorrow.