Despite Elon Musk promise Tesla still struggles with solar energy
Despite Elon Musk promise Tesla still struggles with solar energy

Tesla develops high-quality electric vehicles and is recognized as one of the clean energy companies. Overall, electric cars could be the single most important product that depends on clean energy to make the entire world a better place.

So it makes sense for a company like Tesla to take on a solar business. In fact, it's been five years since Tesla acquired SolarCity for $2.6 billion.

Elon Musk held a meeting in Hollywood to discuss the company's business ideas in an effort to persuade shareholders to accept the takeover.

SolarCity was founded in 2006 by Elon Musk's first cousins, Peter and Linden Rive. Musk, of course, supports this work and is a member of the board of directors. SpaceX, owned by Elon Musk, has purchased a large number of shares worth tens of millions of dollars in the company.

SolarCity's main idea is to provide solar roofs for homes instead of traditional roofs. Naturally, these roofs absorb and store solar energy. And this idea is of course very good, as Musk said in 2016: “The cost of installing a SolarCity roof is lower than the cost of a conventional roof plus the cost of the electricity saved… Can you buy something else?”

Tesla's battle with solar energy

It is expected that these roofs with solar panels will be very popular. Especially when the company merges with Tesla. But the truth is that the number of new customers served by SolarCity has decreased after the acquisition.

This is the fourth quarter of 2017. Tesla said solar products shipped by its Musk cousins ​​are down 43%. Later, in 2018, the company lost control of the residential solar market.

According to a recent report, the company installed 92 and 85 megawatts of solar capacity in the first and second quarters of 2021. This is less than half of SolarCity's standalone installations in the quarter prior to the acquisition.

In addition, the company has transferred a significant number of SolarCity employees to the electric vehicle segment. On the other hand, it provides two employees. After several fires on these solar panels, the company's situation deteriorated.

Unsurprisingly, shareholders sued Elon Musk, accusing him of a buyout only for the company's owning family.

Previous Post Next Post