Shares of SolarCity (SCTY), founded by Tesla Motors (TSLA) CEO Elon Musk, on Tuesday plunged 21%, only to extend the nose dive in the after-hours session after the renewable energy company missed Q1’16 profit expectations – reporting EPS of ($2.56) per share vs. ($2.37) consensus – forecast a much deeper loss this quarter by guiding earnings of ($2.80)-($2.70) vs. consensus of ($2.23) per share, and cut its 2016 outlook for solar panel installations. The combination of weaker growth with poor financials results spooked investors into dumping their SCTY stock. So far in fiscal 2016, SolarCity has lost 65 percent of its value.
After focusing on SCTY’s Q1 earnings and the subsequent reaction by Wall Street, CNBC discusses with Drew Cupps, Cupps Capital Management CIO, and Gordon Johnson, Managing Director at Axiom Capital, if Elon Musk can save the solar company he founded in 2006, and whether Tesla’s run is over.
TSLA was last trading Wednesday at $207.86, down 0.51% from Tuesday and well off its $286.65 July 20, 2015 high. Shares are down 13% since Jan. 1.