Tesla founder's SpaceX investing $90 mn in SolarCity bonds
01 Apr 2015
SolarCity, one of the world's largest installers of solar panels, said today that SpaceX was investing $90 million in its solar bonds.
In a blog post yesterday, SolarCity said that the bonds were ''issued - and backed - by SolarCity and powered by monthly solar payments from thousands of solar customers across the country.''
SolarCity added, ''SpaceX is effectively getting paid by the sun.''
Elon Musk had ties with both companies - and electric car maker Tesla. Musk, founder and CEO of SpaceX, and Tesla, is also chairman of the SolarCity's board.
SolarCity added that SpaceX bought the bonds in the exact same manner as any US investor could - online. ''After reviewing the investment materials,'' SolarCity wrote in its blog post, SpaceX chief financial officer Bret Johnsen ''took less than 10 minutes to set up an account and order the bonds.''
Explaining the rationale for investing in solar bonds is simple, the company said, ''it offers investors like SpaceX the opportunity to earn significantly higher returns than those offered through comparable investments with the same maturities. At the same time, SolarCity is able to raise capital at lower cost.''
