Measured by the Price of Oil
Traditional market analysis suggests that as oil prices fall, solar energy becomes less attractive. In the markets, the value of this stock is tied to the savings from solar fuels over crude oil.
To the extent that the market measures the value of solar energy as a commodity that replaces oil, the SolarCity stock seems overvalued.
Solar energy offers advantages in related economic policies favoring job growth, environmental progress, and economic expansion.
The essence of this analysis is that the political outcome in November 2016 and beyond will determine whether the solar sector has a new rebirth or continues along a more troubled path.