SolarCity raises $305 million from private fund

On the verge of a potential merger, SolarCity received a needed injection of cash from private investors.

The San Mateo solar installer received $305 million from an investment fund affiliated with Quantum Strategic Partners, according to the company. SolarCity has been under pressure, missing recent financial targets and continuing to lose money. The company saw cash reserves drop from $382 million to $142 million between December and June, according to federal filings. It also announced layoffs and cut executive pay.

SolarCity sold $124 million in bonds last month — although $100 million were bought by Tesla CEO and SolarCity Chairman Elon Musk and his cousins, SolarCity co-founders Lyndon and Peter Rive.

Tesla announced that shareholders would vote on its proposed $2.6 billion acquisition of SolarCity next week.

SolarCity shares bounced up nearly 7 percent after the news.

[graphiq id=”kB3t3D5WcBv” title=”Solarcity Corporation (SCTY) Stock Price” width=”600″ height=”617″ url=”https://w.graphiq.com/w/kB3t3D5WcBv” link=”http://listings.findthecompany.com/l/15984994/Solarcity-Corporation-in-San-Mateo-CA” link_text=”Solarcity Corporation (SCTY) Stock Price | FindTheCompany” ]

Photo: SolarCity workers install solar panels on rooftops. (Business Wire)

 

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  • Martin Winlow

    Oh, just like that…! What happened to all the doom and gloom nay-sayers? They must be too busy rushing down to their brokers to reverse their short positions.

 
 
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