Summary

• With the completion of SolarCity's 1 GW manufacturing plant, the company is poised to become the most vertically integrated solar company in the world.
• Despite the risks involved in SolarCity's manufacturing plans, favorable supply-demand dynamics, a heavily mechanized manufacturing facility to reduce labor costs, and the company's experienced management should greatly mitigate such risks.
• If the future plays out the way SolarCity sees it, the company has the potential to gain a massive cost edge over its competitors.

SolarCity (NASDAQ:SCTY) will soon become one of, if not, the most vertically integrated solar companies in the world. With the addition of its huge 1 GW solar manufacturing plant, no other solar company will have SolarCity's combination of downstream and upstream operations in such large scales. While many other large solar companies, such as SunPower (NASDAQ: SPWR), have indeed integrated both businesses, these companies still have the vast majority of their business concentrated in either upstream or downstream solar. SolarCity, on the other hand, will have a dominant presence with both its downstream and upstream businesses.

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Feb. 19, 2015 4:02 PM ET  |  9 comments  |  About:  SolarCity Corp. (SCTY)

Disclosure:  The author is long SCTY.  (More…)

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