If you had gobbled up shares of Tesla or SolarCity about six months ago, you would’ve raised a few eyebrows. With both companies being heavily dependent on government subsidies, they were, at the time, losing money at an alarming rate. To top it off, these were among the most shorted stocks on Wall Street, meaning many investors were betting on them to fail. For these investors, hindsight is 20/20.
These stocks surprised everyone by rocketing upward over the past year–SolarCity by 314% and Tesla by 336%. SolarCity has managed to avert the fate of so many other solar companies by using low-cost panels to its advantage through its operating lease model. Through this model, SolarCity installs these panels at no up-front cost to the homeowner; instead, the homeowner agrees to pay a small monthly sum to SolarCity for the solar energy generated, providing a constant revenue stream for the company.
For Tesla, its demand is outnumbering supply. With the cars being so luxurious, powerful and fun to drive — not to mention the ability to go 200+ miles per charge — these cars are becoming attractive, albeit expensive, options for drivers seeking to combine luxury with energy efficiency. By 2016, the company expects to be producing certain models at starting prices around $35,000–much more palatable for the average driver, since the average starting price on a Model S is in the ballpark of $70,000.
To read the full story, check out Will Deener’s article from Dallas News here.
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