There are a continuing series of these bearish articles, all saying the same sort of things.
A 6% price disadvantage ? Even if his convoluted math was correct solar improvements even approaching Moore’s Law would render that wrong in a few months.
Need the grid for cloudy days? Batteries will make that unnecessary within a few years. Every Tesla on the road is a potential battery source in time.
SCTY is not striving to be a utility any more an your propane BBQ maker is trying to be a NG utility. Or Duracell trying to be an electric utility. All are furnishing an energy source that is cheaper or more convenient than the utility.
Utilities with high fixed costs, legacy health care and retirement costs, companies used to operating on a cost plus basis can do maintenance cheaper than a new upstart like SolarCity?Does anybody actually believe that?
SCTY overpriced? Maybe. But everything else is overpriced too, that’s what is called a late stage bull market. Will you be able to buy it cheaper sometime in the future? Probably, but it may be the depths of a bear market when most are too frightened to buy anything.
As is the case with Tesla I am more bullish on the concept than on the stock. There are reasons to be careful when thinking of buying SCTY. But you won’t find them in most of these articles. Many seem to be written by the same people, reshuffling their arguments like a deck of cards so they look a bit different each time. Somebody that needs the income from writing multiple SA articles probably isn’t a very successful investor…