SolarCity Files IPO, But JOBS Act Allows Them To Keep Financials Quiet

Posted May 7, 2012

SolarCity is a clean-tech company that has been backed up by Tesla Motors and SpaceX CEO Elon Musk. The company has filed for an IPO this past week, but we don’t really know much about their financials. This is because the JOBS Act makes it possible for companies to file for IPOs without having to publicly share anything about their financial performance.

LinkedIn and Pandora had to publicly release three years worth of data that was over 150 pages long. SolarCity only wrote a two-paragraph statement saying that they confidentially filed with the SEC and planned to have an IPO.

If SolarCity does go forward with the IPO, they will not have to release data to the public until 21 days before the investor roadshow. They also only have to show two years worth of data instead of three. The JOBS Act has loosened restrictions on crowdfunding, the 500-shareholder rule, and having an IPO.