Tesla, Inc. (Nasdaq: TSLA) is reporting on the opening of a new solar farm, located on the Hawaiian Island of Kauai, which is said by CNBC to be responsible for powering the island "after dark." The 50-acre Tesla solar project uses nearly 55,000 solar panels. Electricity generated by the panels is stored in bank of 272 Powerpacks.
TSLA stock has been sold in the wake of its February 22 earnings release, where the firm, headed by chief executive officer Elon Musk, reported a per share loss that was wider than analysts' expectations. Following the release, estimates for losses in 2017 have increased, as have forecasts for profits in 2018.
TSLA stock is down by 8.26 percent over the past month.
Tesla partners with Kauai cooperative
The Hawaiian Tesla solar farm is working in partnership with the Kauai Island Utility Cooperative, generating renewable electricity that The Verge reports that Tesla and the Cooperative claim will save "1.6 million gallons per year" of fossil fuel usage. The website notes that the initiative is the first since Tesla purchased its cousin company, SolarCity, in a $2.6 billion deal last year. SolarCity was headed by Lyndon Rive, Tesla CEO Elon Musk's cousin. Musk held significant stakes in both firms. During its Wall-Street run, analyst expectations for SolarCity EPS were continuously slashed, until the eventual buyout.
Tesla's goal is to transform itself from an "electric car maker" into a "sustainable energy company." The battery used in the Kauai solar farm is the Tesla Powerpack 2, the same used in a previous Tesla solar farm in American Samoa, on the island of Ta’u. The Kauai solar farm is described as "a 52 megawatt-hour battery installation plus a 13 megawatt SolarCity solar farm." The batteries were reportedly produced at Tesla's $5 billion Nevada Gigafactory.
Can Tesla meet aggressive forecasts?
The Verge explains that the Tesla Powerpack 2 system is essentially 16 residential Tesla Powerwall units, stored together in a electrically sound case. According to Yahoo Finance, Tesla currently reports an operating margin of -8.94 percent, a profit margin of -9.64 percent, and a return on equity of -22.12 percent.
In its February 22 financial results, Tesla reported a cash position of $3.39 billion, debt of $8.59 billion, and a debt-to-equity ratio of 145.43 percent. TSLA EPS is expected to grow by 384.9 percent in 2018, and then by 35.0 percent annually, over the coming five years.
