Summary
- Tesla's $670 billion market cap is based in part on the belief that it is "more than a car company"; Tesla's solar energy business has fed this narrative.
- While treated like a value-add by Tesla's boosters, its solar unit has in practice been a costly millstone; margins remain deeply negative.
- Tesla's solar deployments have fallen far from highs set years ago, with little prospect of a reversal.
- Hopes that Tesla's Solar Roof could reinvigorate deployment rates have faded amid multi-year delays and persistent installation bottlenecks.
- As Tesla's solar business fades, it may threaten the company's broader growth narrative, as well as its vaunted share price.
As any of my longtime readers can undoubtedly attest, I have been tracking Tesla Inc. (NASDAQ:TSLA) for a while. I have covered numerous subjects related to the electric vehicle (“EV”) company over the years, but I have returned often to one in particular: Tesla’s solar energy business.
It has been a while since I last took a look under the hood of Tesla’s solar division. With the first two quarters of 2021 in the rearview mirror, it feels like now is a good time to revisit the long-struggling business unit.
Much has changed for Tesla Solar in 2021, little of it for the good. Let’s discuss why this is the case.
Solar Deployments In H1 2021: Still In A Long-Term Downtrend
As I have discussed at length on numerous occasions over the years, Tesla Solar has been in material multi-year decline from a deployments...
Read Full Story: https://seekingalpha.com/article/4451383-inside-the-deterioration-of-teslas-solar-business
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