Thursday, March 24, 2016

Elon Musk Has SpaceX Spend $90 Million Propping Up His Solar Company

by Andrew Follett

Liberal billionaire Elon Musk is using his taxpayer-backed space company to prop up his ailing taxpayer-backed solar panel company. Musk’s SpaceX pumped $90 million into the financially troubled SolarCity, according to recently released Securities and Exchange Commission (SEC) filings.

SpaceX now has an estimated $255 million invested in the struggling rooftop solar company, as the space company has already purchased $165 million in SolarCity bonds. SpaceX makes its money by selling rockets and space transportation services to the National Aeronautics and Space Administration (NASA) and is looking to start supplying the American military. SolarCity is a sizable investment for SpaceX, which was valued at $12 billion in 2015.

Musk himself invested $10 million of his personal fortune into SolarCity in February, according to SEC filings.

SolarCity has been in rocky financial straits recently as state governments cut back on lucrative subsidies people can get for selling solar power back to the electrical grid.The company’s stock has rapidly fallen and currently hovers around $23.54 per share, down from its 2014 high of $86.

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