Tesla's store-shuttering strategy can pull the rug out of solar

SAN FRANCISCO (Reuters) – Tesla Inc. (Reuters) – Tesla Inc.'s global decision to shut down the bulk of its solar panels, a declining business paid $ 2.6 billion for a controversial 2016 deal.

The Chief Executive Elon Musk's announcement on Thursday that the electric vehicle maker would close its doors to the world. .

"Solar is now the stepchild at Tesla. They've made two decisions in a row that they believe in the Home Depot idea, "said Frank Gillett, senior analyst at Forrester Research.

"It does not feel thoughtfully done, it's rushed. Basically it will be hurt by a brand and marketing point of view, "Gillett said.

When Tesla made its offer for SolarCity – a debt-laden solar-panel sales and installation company founded by two of Musk's cousins ​​- its stock price was down 70 percent from its all-time high. Musk cast the deal as a "no-brainer" rife with synergies, in which customers could be sold both cars and solar energy systems.

That has become so, and Tesla's solar business has been shrinking as the Model 3 has become Tesla's priority. As part of the company-wide layoffs last June, Tesla closed on a dozen solar installation facilities.

Tesla said it would be all over the world. The company says that roughly 75 percent of its sales are generated via the web or referrals.

"The majority of our residential solar and Powerwall orders are already in the market place, including online or via referral, and we believe this shift to online sales, with a dedicated energy adviser from our support team, will result in the best, "Tesla spokesman told Reuters.

Tesla quoted a quotient of $ 3,000- $ 5,000 on average, and said that it would help to reduce the cost of revenue.

Ending the deal with the home depot, which has huge sales of Tesla solar sales. In the fourth quarter, the company deployed 73 megawatts of retrofit solar systems, a total of 200 megawatts in the first quarter of 2016. Total energy generation and storage revenue 7 percent of the first quarter to $ 371.5 million.

Including selling private-label and third-party solar panels, Tesla sells energy storage systems for home and business use, so-called Powerwalls and Powerpacks. Tesla has said almost all Powerwall-only orders are placed via the web or some third-party solar installers.

Unveiled by Musk in 2016 at a slow pace, Tesla said in its 2018 annual report, due to design changes. Progress at Tesla 's solar factory in Buffalo, New York, where the tiles are manufactured, meanwhile, has been stalled by assembly – line problems.

One training solar seller is off the ground in January told Reuters that 70 percent of leads on solar had come from Home Depot. Upper management at Tesla "did not appreciate the significance" of the deal with the big-box retailer, the source said.

"If you want to go to mass volume, you have to go after the customers," the source said. "Solar is not sexy enough to have the customer come to you."

Musk said Tesla will still be open, as they will be offered.

Tesla's website: http://www.youtube.com/watch

In January, Tesla said it was "still in the process of transitioning our sales partners to our partners."

But to train solar salespeople told Reuters that Tesla had already been put on the back burner, with Tesla-branded panels not even available for installations in the latter half of 2018.

"They'd tell us the focus of the company is the Model 3," said one trainer, who left the company in January. "The Model 3 has no business."