NEW YORK (TheStreet) -- SolarCity (SCTY) stock is down 7.70% to $21.83 on heavy trading volume this afternoon after hedge fund manager Jim Chanos yesterday warned 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, Chanos told CNBC.
The 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, Bloomberg reports. SolarCity reported negative cash from operating activities of $790 million last year.
Chanos reiterated his short position on the company. The stock is down more than 40% since he first revealed his short position in August.
About 9.98 million shares of SolarCity have been traded so far today, well above the company's average trading volume of roughly 4.8 million shares per day.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
SolarCity's weaknesses include its generally high debt management risk, weak operating cash flow, generally disappointing historical performance in the stock itself and poor profit margins.
You can view the full analysis from the report here: SCTY
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.