Guest JulyWebb

SolarCity (SCTY)

57 posts in this topic

Patrick Jobin - Credit Suisse

And then last question, on the cost roadmap. You’ve exceeded your targets 30% this year. How should we think about that 5.5% reduction per year on a go forward basis? And related to that, what are your thoughts around the trade disputes and how that could impact your business if a tariff is imposed on Taiwanese sales, and how would you mitigate that?

Peter Rive

The answer to those two questions, they’re actually interrelated, the trade case, needless to say, is not going to be helpful at all, but is very much a short term factor. So we don’t expect that it will dramatically affect our costs in the long term. And then there also strategies that we’re contemplating that would give us the ability to protect us from the [unintelligible] trade case. But with the uncertainty surrounding the trade case, it is exactly for that reason that it is difficult for us at this time to provide a cost forecast that we’re confident in. So sorry for that, but we will be providing a revised cost forecast to you all during the next earnings call.

Lyndon Rive

And overall, our expectation for the year is we don’t know exactly the impact of the trade case, but in either case, we are confident our costs will reduce, we just don’t want to forecast how much just yet, until we know the impact.

SCTY on cost reduction even with a trade war.

0

Share this post


Link to post
Share on other sites


SCTY on cost reduction even with a trade war.
Interesting to think about this.  BOS costs decline every day here in the US.  They have a list of states that will be in the next wave.  There is nowhere currently that they can get modules from if some of those States open up.  A few of those States could be big markets but without modules, what then?   What if the US market just goes parabolic, can you make a module here in mass quantities and make a decent profit while remaining competitive?   Something needs to give somewhere.
0

Share this post


Link to post
Share on other sites

I know some aren't interested in SCTY but several of the CN Solars sell modules to them. I thought we might hear some comments made towards the impending US Tariff Case. I believe they had said before it was hard for them to give guidance not knowing how that might turn out. They may be questioned on it in the Conference Call if anybody wants to listen.

0

Share this post


Link to post
Share on other sites

Im listening. They said they would comment on this later when they were asked earlier.

 

Thanks Norse, I hope you can give us an update. :)

0

Share this post


Link to post
Share on other sites

They are using other suppliers than Chinese. Also, I think they just said the new delay(they have a new CC on Monday) is because its hard for them to finish them before they know the outcome. I am not sure if I got that correctly. We will see that on the transceipt.

0

Share this post


Link to post
Share on other sites
Guest
This topic is now closed to further replies.