NEW YORK ( TheStreet) -- I sat down today to talk about high flying stock SolarCity (SCTY - Get Report) today with Joe Deaux. TheStreet's energy editor. Solar City has become a great trading stock because of the justified hype surrounding one of its main backers, Tesla (TSLA) CEO Elon Musk.
But is it a great investment? That's the question I tried to answer for Joe in the video above. In a fundamental case for valuation, there is nothing that can justify SolarCity's extreme $2.6 billion market cap with only a yearly revenue stream of about $15 million. Indeed, in the last quarterly report, losses from SolarCity even eclipsed the worst fears of analysts surpassing $100 million.
Yet, the stock continues to soar. All of this is because of the prophetic Elon Musk, who founded and sold PayPal to eBay (EBAY) for an astounding $2.1 billion as well as selling his second company, SpaceX, to NASA. It is rare in a generation to see a visionary like Elon Musk, and that wild card makes all the fundamentals of stock analysis somewhat moot in assessing whether SolarCity is in fact a good long term investment.
I talk more about SolarCity and Elon Musk with Joe in the video above.At the time of publication the author had no position in any of the stocks mentioned. Follow @dan_dicker This article was written by an independent contributor, separate from TheStreet's regular news coverage.
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