Mon, Apr 21, 2014, 11:18 AM EDT - U.S. Markets close in 4 hrs 42 mins

Recent

% | $
Quotes you view appear here for quick access.

First Solar, Inc. Message Board

  • futureripplemovers futureripplemovers Jan 6, 2014 9:55 AM Flag

    Will Deener: Tesla and SolarCity defy skeptical investors

    Will Deener: Tesla and SolarCity defy skeptical investors

    IMAGE Brian Elledge
    Tesla Motors Inc., a seller of electric cars, has seen its stock soar 336 percent in the last year.

    Will Deener
    Published: 05 January 2014 09:17 PM
    Updated: 06 January 2014 12:34 AM

    The performance of two stocks in 2013 reaffirms my belief in my favorite Wall Street aphorism: The stock market will do whatever it takes to prove the most people wrong.

    If six months ago I had suggested that you load the wagon with shares of SolarCity Corp., a seller of solar power, or Tesla Motors Inc., a seller of electric cars, you would have thought I had taken leave of my senses. Both companies were losing money hand over fist, and both were highly dependent on government largesse — specifically subsidies and tax breaks.

    And, to top it off, both were among the most highly shorted companies on Wall Street. About 30 to 40 percent of their stock float was shorted, meaning a large slug of investors were betting the shares would fall.

    As it turned out, those who shunned these two companies missed out on humongous gains, and the shorts have suffered massive losses. Shares of SolarCity have soared 314 percent in the past year, while Tesla has also seen its stock propelled into the stratosphere with a 336 percent gain.

    No one expected these kinds of gains, but as is so often the case, the stock market will do whatever it takes to prove the most people wrong.

    Most investors were predisposed to write off SolarCity because, well, it’s involved in solar — a roller coaster industry if there ever was one.

    Solar stocks get hot when electricity prices rise and governments in the United States, Europe and China throw large subsidies at the industry. But then they get cold when electricity prices decline, as they did in recent years, or when governments get stingy with their largesse, as Europe did during the last recession.

    Also, a couple of years ago, the stock prices of SolarCity and

 
FSLR
68.13+0.8100(+1.20%)11:18 AMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.