SolarCity Losses Widen On Higher Expenses -- WSJ -- August 9, 2016

Updates

August 10, 2016: SolarCity was not the only MuskMelon company losing money. From CNNMoney today:

Likewise, Tesla revealed last week that its losses for the second quarter ballooned to $150 million, more than twice what Wall Street had expected, as it invests heavily in building a battery factory and the cheaper, mainstream Model 3 vehicle.

Original Post

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SolarCity Corp. , which is in the process of being acquired by fellow Elon Musk company Tesla Motors Inc., reported a wider quarterly loss Tuesday as operating expenses climbed sharply.

For the current quarter, the home solar company forecast an adjusted loss between $2.55 a share and $2.65 a share, worse than estimated by analysts surveyed by Thomson Reuters, who forecast a loss of $2.26.

For the latest quarter, SolarCity reported a loss of $250.3 million, or 56 cents a share, compared with $155.7 million, or 23 cents a share, a year earlier. The quarter’s adjusted loss was $2.32 a share, better than analysts’ predictions of $2.44 a share.

Revenue rose 81% to $185.8 million, far above analysts' expectations of $146 million.

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Saudi Losses In Yemen war Exposed By US Tank Deal

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The U.S. State Department and Pentagon Tuesday OKed a $1.2 billion sale of 153 Abrams tanks to Saudi Arabia Tuesday. But that’s not the real news.

Turns out: 20 of those tanks, made in America by General Dynamics Land Systems, are “battle damage replacements” for Saudi tanks lost in combat.

Even though the formal announcement of the sales does not say where the tanks were fighting, the Saudi military is believed to have lost some of its 400-plus Abrams tanks in Yemen, where it is fighting Iranian-backed Houthi separatists.

In addition to this Abrams tank deal, the State Department has approved two other sales to Saudi Arabia, $200 million for training, and $155 million for Gatling guns that defend ships from missiles — sending the week’s total value past $1.5 billion. Still, Riyadh’s 2016 shopping bill has a ways to go to match last year’s total, when State approved more than $20 billion in sales of ships, helicopters, missiles defenses, bombs and ammunition.

There may be a reason that Saudi Arabia is spending less on arms this year.