SolarCity Corp (NASDAQ:SCTY) is set to release its earnings numbers for the three months through September this afternoon after the market closes on Wall Street. The company is expected to show a loss of 44 cents per share in this morning’s earnings report.
Shares in SolarCity Corp (NASDAQ:SCTY) were trading down in anticipation of the results, a move that might be related to the fall in the value of sister-company Tesla Motors Inc (NASDAQ:TSLA) on today’s market. Both firms were co-founded by Elon Musk, and both have grown massively through 2013 on the back of a tech market, and Elon Musk, boom.
SolarCity Corp (NASDAQ:SCTY) is still suffering from massive losses, and there is little chance of the company making a profit in the short term. The firm recorded a full year loss of $5.22 per share in 2012, and is expected to record a full year loss of $1.72 for the full year 2013. 2014 is expected to see the company lose $1.66 per share.
SolarCity Corp (NASDAQ:SCTY) is a growing concern. It is investing a huge amount of money into its business, and it is expecting its investors to bear with it as it looks to create value. The massive expansion in the value of the company through 2013 has created questions about whether investors should stick by the firm.
SolarCity Corp (NASDAQ:SCTY) shares have increased in value by around 400% since the start of 2013. The company has performed very well on the back of a boom in the renewable energy industry, a general boom in the stock market, and the company’s connection to investor favorite Elon Musk.
The loss in the price of shares today may be connected to the massive loss in value at Tesla Motors Inc (NASDAQ:TSLA). SolarCity Corp (NASDAQ:SCTY) only went public in December of 2012, so it is difficult to predict where the company is going or what is giving it value. The firm’s large losses and near $5 billion valuation tell wildly different stories.
Like Tesla, SolarCity Corp (NASDAQ:SCTY) is valued on good management and high expectations. The company’s shares are volatile because of their massive valuation, and it is possible that the company will suffer from volatility in after market trading if earnings miss expectations.