Is This The Beginning Of The End For Tesla's Solar Business?

Zero Hedge | 6/22/2019 | Staff
LordLord (Posted by) Level 4
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Tesla held just a 6.3-percent share of the residential solar installations market in the first quarter of this year, falling to the third place for the first time since Wood Mackenzie began tracking this industry in 2013.

The consultancy said in its latest quarterly report that the number-one solar installations provider in the first quarter was Sunrun, with a market share of 11 percent, followed by Vivint Solar, with a market share of 7.6 percent. Together, the three solar companies installed about a quarter of all residential solar capacity in the United States in the period.

Tesla - Solar - City - Share - Market

This is less than Tesla’s Solar City’s share of the market at the peak of its performance, suggesting that the company may have decided to stop pursuing growth in this particular industry.

Indeed, a senior solar analyst from the consultancy said in a report from April, “Tesla has essentially thrown in the towel on pursuing growth in the residential solar space because it has concluded that acquiring customers is simply too expensive. Rather, Tesla will rely on its brand power and low-cost referral methods to keep the solar business afloat until it stabilizes.”

Year - Tesla - Price-cuts - Sales - Installations

Last year, Tesla resorted to price-cuts to boost the sales of its residential solar installations. The company reduced the prices by between 15 and 25 percent for different systems, which translated into quite a substantial discount of between US$3,000 and US$5,000 per system.

The move was part of an ongoing restructuring of SolarCity, which Tesla bought in 2016. The EV maker acquired SolarCity for US$2.6 billion plus the assumption of another US$3 billion in SolarCity debt in 2016. At the time, many questioned the wisdom of such an acquisition given that SolarCity was a cash burner, but since...
(Excerpt) Read more at: Zero Hedge
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