SolarCity CEO Lyndon Rive was none too pleased with Jim Chanos, head of the world's largest short-selling hedge fund, after he revealed on CNBC Friday that SolarCity is one of his firm's biggest short positions in renewable energy. The call sent SolarCity's shares down 12 percent.
In fact, Rive was so distraught by Chanos' comparison of his company to a subprime financier that he took it upon himself to call in to CNBC's "Options Action" to rebut him.
"I just don't think he got his facts straight," Rive said. "We sell them energy at a lower rate than they can buy from the utility today, so the likelihood they are going to default on us is extremely low," noting that the default rate for customers was around a half percent over the last eight years.
Rive further clarified that the subprime market was defined by a FICO score of 640, below the lowest credit score Solar City accepts of 650 and far lower than the average customer score of 750.