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Billionaire Elon -- known for creating companies' names like PayPal yeah that was his Tesla Motors SpaceX is also serving as chairman.
Of solar city now that company went public today after delaying the IPO and cutting the share price.
I spoke with you Lana and solar city CEO and co-founder of Linden -- earlier at the NASDAQ and asked them.
Why they brought their company to market under what appeared to be challenging situation today.
I don't think that David change from today vs the month from now -- two months from now.
The big impact of the bestseller sectors -- and the challenges of social sectors have specific in the manufacturing.
That will stay with -- for the next two months.
So that it's important to educate them of who we -- And then had to go -- at a time.
-- -- -- -- -- What we did debates.
Very very heavily whether we should just stay private -- of the private financing round -- forego public.
And exercise -- We'll go one way or the other.
That -- for the final deciding factor was -- a a place and close the institutional investors that are really trust like Fidelity.
Men ask them what's their opinion they recommended going public now rather than it did in the future and based on that recommendation.
-- we've moved forward.
In a way.
Could it possibly work in your favor eventually that you under promised and perhaps then over deliver.
Yeah yeah an accident the if we -- -- growth targets.
The investment community to -- -- the confidence and knowing that this is not a traditional manufacturing they'll see that the season new energy company.
An energy company that traits electricity at the pace we needed -- don't have this legacy infrastructure don't have transmission distribution.
And you created facing natus.
And it's cheap so -- is fundamentally -- distributed energy company.
When you install the panels but usually we just a homeowner I -- homeowners don't want to think about it they don't wanna deal with the that you guys handle all of that band.
Fold in the tax credits but could you guys to have -- -- own two -- Democrat.
Facilities that so.
For the most -- of the US has been to tops of incentives there's been steadily incensed and that's -- that the state -- The -- -- have.
But yet we've been able to keep up with the cost reductions to keep up with that state -- the -- The fatal incident is gonna go from 30% to 10% just like every other fossil fuels incentive -- there pack and train seventeen.
If we reduce our cost about five and a half cent -- year we'll have significant sustainable business very cemented to look at bank before it -- You're the chairman -- they -- his cousin -- bigger cousin with him.
Are you gonna be sitting there humbling him and saying -- costs keep those costs down.
And -- and and and and he'd do such a great job of approving solicited.
Really but what I do such over the we're pleased to -- good news.
It doesn't get on the net exports ahead pets it's -- saying he -- -- indicates that there are idealists who have been.
That process before with Tesla -- mean you know what the challenges are here and that some promises can't be delivered.
Others surprise so you know that there are big issues ahead on this landscape.
Yeah different I think this is stepping up going to be an easy thing is to -- lot of work.
And as soon as those saying we read to improve cost by at least 5% a year in order to stay ahead of the consent of reduction.
Would only be profitable by the way.
So in terms of tested positive goes to be tested positive -- end of next yeah.
-- -- You and I walked.
Through the Tesla motor plant up in California northern California just back in September it it looks energy intensive to me it is hence why don't you have solar city provided -- your electricity.
Opens the missiles that the reason we don't have this has been at its sole power right now is that his -- is not yet the good enough credits.
What kind of sounds ridiculous I think it's at some point mixture of I'm confident we'll we'll have so -- on on a -- it to us.
-- -- the on this great day for you guys I mean.
Two employees to something like this today.
The fiscal cliff you know maybe that's part of the reason that -- much interest do you see like -- or perhaps why you have to cut this.
The price cut I -- that's pretty significant going from thirteen to fifteen dollar range down to eight dollars.
At this I think -- the success is is is overblown.
I don't think it's the reason why we -- take the -- The reduction in the price that this kitty just before the fact that -- has been burned so badly was anything associate with -- And this season -- all those other problems.
The dissident general publicly traded manufacturing companies.
Whitman -- every time that -- debate and -- blocks.
For the last thirty years.
And then you go to them again say this -- a different day that this is the right -- And they want to get anxious to get it right back.
Iran the fiscal cliff to that plays into why -- city had to cut costs.
I think there was a minor factor -- -- was saying I think it that the that the logic factor is that.
Indeed it is that investors who who -- looking at the that the IPO.
For the last ten -- that -- -- that we've invested an all powerful underwater.
That the bankers were saying that the only -- tech company that's trading above its IPO price this has slowed.
-- It's it's it's just tough when somebody has -- a story where.
But let's have sound compelling for the first ten times and then the eleventh of becomes -- this time for sure it's gonna work -- And even though that the fundamentals are really strong I mean nobody could refute that the business fundamentals.
That they really.
The blue people push technical was somewhat irrational it's like -- it's solar -- -- like that.
Put these fundamentals are really strong and that's what the so is rapidly.
But that does make any sense that we've had a 100% growth rate that's deficit customer thrift he had the Soledad something that we we we we we we could have immense in infancy we we agreements money.
At -- -- back like oh wait a second.
Jump in the stock today looks like they priced it well enough that it did get the big pocket -- glad I didn't --
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