Dallas, Texas 11/26/2013 (Financialstrend) – The $3.42 billion market capped SolarCity Corp (NASDAQ:SCTY) has been under pressure at the browsers in the past few weeks. It has dropped close to 23% of its market value during trading in the past 30 days. In its efforts to revive the flagging sentiments of its investors the firm has been working towards putting together plans which is geared towards increasing the operational profitability which in turn will drive up its share price.
Push To Increase Foot Print in California
SolarCity Corp (NASDAQ:SCTY) yesterday’s announcement of expansion of operations in California has to be seen in this context. The firm has been targeting most of these operation centres operational before beginning of 2014 and there by almost doubling its capacity in the state. The opening of these new operational centres is an extension of the firm’s resolve to increase its presence in new markets, which in turn is supposed to increase operational effectiveness in terms of time needed to respond to new customer requests and expand its service offerings. The new centres inauguration also means the firm adding more jobs to the state’s economy.
Commenting about the expansion in its operations, SolarCity’s executive vice president of operations Tanguy Serra has been quoted as saying, “ This expansion not only allows us to spread job creation and economic impact to more local economies, but it also allows us to reduce our costs and environmental impact by decreasing drive times and increasing installation efficiency. The fact that this is happening as California’s largest state incentive program is winding down is a key indicator of how far solar power has come toward the mainstream.”
Attempt to Keep Pace With Competition
Efforts by SolarCity Corp (NASDAQ:SCTY) to increase its penetration in the domestic market has to also be seen in context of its competitors like First Solar, Inc. (NASDAQ:FSLR) expansion in external markets leading to healthy growth in their returns.