Tesla got into solar energy through the acquisition of SolarCity back in 2016 but recently the company’s solar ambitions have been lost as Elon Musk was busy focusing on building electric cars, robo-taxis and fighting with the SEC
Tesla’s main priority so far has been its large electric vehicle business in which the company has invested massively, meanwhile, its solar business has taken a back seat and saw a decrease of almost 60% according to analysts.
As per research firm Wood Mackenzie, Tesla lost the lead as rooftop solar installer in America back in 2018, being outrun by its not so popular rival Sunrun (RUN) and being just barely ahead of Vivint Sola (VSLR).
Since Tesla’s electric cars have been winning more and more in popularity, the situation did not seem just as bright for its solar business. That is why Musk wants now to revive Tesla’s solar business by seriously cutting costs. In order to do this the company has implemented standardized systems and is stopping door-to-door sales, and instead is asking customers to order solar panels online.
Timothy Fox, vice president and research analyst at Clearview Energy Partners, an energy research firm stated: “Tesla is likely hoping to use low prices to drive out competition and gain market share.” He added: “Elon Musk has a lot of priorities on his desk. His competitors may just have a more singular focus that has allowed them to gain market share.”
While Tesla is running this strategy, some Wall Street observers are skeptical that the company can pull it off without eating into its already-shrinking bottom line.