Feeds

Elon Musk's solar energy biz scraps IPO liftoff at last minute

SolarCity's stock debut postponed, sources whisper

3 Big data security analytics techniques

Elon Musk's clean tech venture, SolarCity, has delayed its initial public offering at the last minute, putting the shares, which had been due to start trading today, on hold.

The solar energy firm is struggling to price its stock sale amid troubles in the sector, sources told Reuters and the New York Times.

According to an SEC filing, the company was hoping to raise up to $151m on shares priced at between $13 and $15. That price would put the market valuation of the firm at a hefty $1bn, making it the second most valuable US-listed solar company behind First Solar.

Before now, SolarCity had been able to raise the money from private backers like Google, Morgan Stanley and Bank of America Merrill Lynch. Its business model offers homeowners a free solar energy system in return for solar leases running for up to 20 years.

But subsidies for solar power are falling and competitors in the sector have been suffering. Solar firm Solyndra recently declared bankruptcy, as did battery maker A123 Systems.

Musk naturally has faith in the firm and is planning to buy up $15m worth of the stock in the IPO. But it's not easy to put a price to the shares of solar firms because they're so untested in the markets.

In addition, like so many tech firms that want to debut on the market, SolarCity has yet to make a profit. Its revenues jumped 84 per cent last year to $59.6m, but it still had a net loss of $73.6m. ®

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.