Seeking Alpha: Dissecting SolarCity's Manufacturing
Ambitions
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.
Feb. 19, 2015 4:02 PM ET | 9 comments | About: SolarCity Corp. (SCTY)
Disclosure: The author is long SCTY. (More…)
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