SolarCity (NASDAQ: SCTY) stock was down $1.74, or 7.7% to $21.91 U.S. on heavy trading volume this afternoon after a well-known hedge fund manager warned Wednesday that the company will get into "financial trouble in 2016."
Shares of SolarCity will continue to fall as the rooftop solar developer loses money on every installation, Jim Chanos told the media.
Bloomberg reported that he company's installation figures soared 73% in 2015, but it is pouring money into new installations as part of a strategy that won't generate near-term operating profit SolarCity reported negative cash from operating activities of $790 million last year.
About 11.9 million shares of SolarCity changed hands Thursday, well above the company's average trading volume of roughly 4.8 million shares per day. Its 52-week stock price has ranged from $16.31 to $63.79 U.S.
