Feeds

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

SolarCity's stock debut postponed, sources whisper

Top 5 reasons to deploy VMware with Tegile

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. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.