A month after Elon Musk announced his plans to build a fleet of solar-powered electric cars, it looks like he may be on to something: SolarCity is in the process of raising $250 million in a new round led by Google Ventures, according to Axios.
This comes on top of $50 million Musk announced for a new venture in early 2018, SolarCity Energy.
Musk said that the investment was part of his plan to build “a new type of energy infrastructure.”
The investment would be funded by the company’s existing investors, which includes Google Ventures and Sequoia Capital.
SolarCity CEO Lyndon Rive announced the funding during a call with investors, and the announcement came on the heels of the launch of its first vehicle, the SolarCity Solar Roof, a vehicle that can harvest energy from the sun.
The new round would be financed by a mix of equity and debt, with the new investor owning 30% of SolarCity.
The company has already received a lot of press, including from Tesla, which announced plans to produce 100,000 of the new Roofs over the next three years.
As Axios reported, the funding would come at a time when SolarCity was facing a major crisis of sorts.
The SolarCity company announced in August that it had lost a $25 million contract to sell the company its power grid.
Tesla had initially said it was pulling out of the grid due to the problems, but Musk has since said that’s not the case, and he’s now suggesting that SolarCity should have just stuck with the grid and not bother with the power purchase agreement.
Solar is already losing money, and Musk has said that Solar City will be worth less than $50 billion by 2021.
The announcement comes after Musk said in a February press conference that the company would be in financial trouble by the end of the year, and it could end up losing more than half of its market value.
“We have a long way to go before we have a profitable company,” Musk said at the time.
“The problem is we don’t have the infrastructure to make a profitable investment.”
The company’s stock price has also been on a tear in the last few months, climbing above $50 per share in recent weeks.
Solar City recently reported that it expects to have sales of its Powerwall solar roof unit to reach 100,00 units by the third quarter of 2021.
While the company is still struggling financially, Musk is confident that Solar is on track to meet that goal.
“There is nothing I’m doing to deter them from going ahead with their plan,” he told Axios in February.
“They are building a product that is going to make them money.”