Rive owns 2,679,069 shares of the company. Sold only 160,000 shares out of 2,839,069.
Sentiment: Strong Buy
Yeah but he also bought the same amount of shares at 46.... Why is he dumping so close to his purchase price?
This company is overvalued for the following reasons.
SolarCity has stiff competition from 2 private companies (Sunrun and Sunjevity).
SolarCity has a Price to Sales ratio of 27 (SUNE, FSLR, and SPWR have price to sales of 1.5, 1.5, 1.39 respectively).
SolarCity has no proprietary technology (none - zero).
Yearly sales total $147 million. SolarCity's market value is $4.9 billion.
Only about 15 states have electric rates over 15 cents per KW (a rate needed to make this technology cost effective).
The CEO's sale yesterday of 160,000 was his largest sale ever.
I am short SCTY for the above reasons.
P.S. - Also, the market is de-levering risk.
Shorting this stock is not a good idea for down side $2 profit, upside risk $40 from the current price. Think about it everything is going to be solar.
I'm glad he paid his taxes and helped our country get back on it's feet.