Shares of SolarCity (SCTY) are now nearly fully recovered from the Jim Chanos sell off.Chanos a well known short player slammed SolarCity LIVE on CNBC back in August and shares sold off 60% falling hard and fast from $62 to $25.
For those who do not follow this stock Elon Musk who owns Tesla Motors (TSLA) is a large shareholder and related to the CEO Lyndon Rive and took Jim Chanos to task (publicly at the time) by stepping up and buying 75 million additional shares in the open market during this decline.My sources tell me he paid an average of $40 per share. Musk is no doubt high fiving his brothers in law this morning as shares continue higher testing the $60 price point.
The turnaround has been swift, and no doubt the Chanos Hedge Fund is scrambling to cover shares and lighten his load as we head to year end for US Equities.Shares bottomed on November 12th and have exploded higher once the news filtered out about the upcoming extension. The rally is clearly fueled by the $1.15 trillion spending plan unveiled earlier this week.Lawmakers included a five-year extension of tax credits for new energy projects powered by solar panels, the Wall Street Journal reports.
The 30% federal tax credit for solar power companies will gradually be reduced to 10% in 2022, the Journal notes. Lawmakers still must approve the plan. "Using clean energy is the most important step an individual can take to address climate change and protect future generations," SolarCity CEO Lyndon Rive said in a statement about the legislation on Wednesday. "Combined with the historic Paris climate agreement, long-term certainty for the ITC sends a strong signal to the marketplace that investment in clean energy is the right way to drive continued economic growth and job creation."
SolarCity Corporation designs, manufactures, installs, maintains, monitors, leases, and sells solar energy systems to residential, commercial, government, and other customers in the United States. It offers solar energy systems; solar lease and power purchase agreement finance products; mounting hardware for photovoltaic panels; and related software, as well as develops a proprietary battery management system, which is designed to enable remote, bidirectional control of distributed energy storage that can provide benefits to customers, utilities, and grid operators. The company also sells electricity generated by solar energy systems to customers. It offers its products and services through direct outside sales force; door-to-door sales force; call centers; channel partner network; and robust customer referral program. The company was founded in 2006 and is headquartered in San Mateo, California.
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