SolarCity Downgrades 2016 Guidance

Only days after Tesla moved to purchase SolarCity, America’s leading solar developer has downgraded its 2016 guidance for MW installed.

SolarCity announced on Monday that it and Tesla had agreed to combine their businesses, becoming “the world’s only vertically integrated sustainable energy company.” However, despite exceeding second quarter guidance for MW installed, SolarCity also announced that it was lowering its full-year 2016 guidance for MW installed from 1,000 to 1,110 MW down to 900 to 1,000 MW.

SolarCity reported that, in the second quarter of 2016, it had installed 201 MW — exceeding previous guidance of 185 MW — and had seen its MW booked increase by 40% over the first quarter.

However, residential books in the first half of the year were still lower than anticipated, forcing the company to downgrade its full-year MW installed guidance.

The company will report its full second quarter earnings on Tuesday, August 9, including its adjusted fully loaded cost structure as a result of its downgraded guidance.