Renewable Energy

SolarCity results: loss of $2.27 per share vs. expectation of loss of $2.29 a share

SolarCity employees prepare to install solar panels on the roof of a home in Kendall Park, New Jersey.
Michael Nagle | Bloomberg | Getty Images

SolarCity posted smaller than expected losses per share of $2.27 on Wednesday. Analysts were expecting a loss per share of $2.29.

The company posted losses of $2.41 per share in the same quarter last year. Revenue in at $201 million, beating expectations of $171 million, according to a consensus estimate from Thomson Reuters.

SolarCity's revenue has grown rapidly over the years, but high costs have largely kept the company from achieving profitability.

Shareholders for both Tesla and SolarCity vote on the proposed merger between the two companies on Nov. 17.

Tesla said in a Nov. 1 statement it expects SolarCity to add more than half a billion dollars in cash to Tesla's balance sheet over the next 3 years, as it moves to create the world's "only integrated sustainable energy company."

The merger has plenty of critics. Some have said the deal would be a financial drain on Tesla, while distracting management from making electric cars.

Others have called the merger a bailout for SolarCity, or point to the close relationships between high-level executives and board members in both companies — Tesla chairman and CEO Elon Musk also chairs SolarCity and is its principal shareholder. Musk's cousins Lyndon and Peter Rive are senior SolarCity executives.

But Musk has maintained that providing solar power, and integrating it with Tesla's stationary power storage business, has long been one of his key goals for Tesla.

Recently the deal received a boost from influential advisory firm Institutional Shareholder Services, which recommended shareholders approve the merger.

UBS: Tesla's bid for SolarCity an unneeded distraction