Tesla’s SolarCity Sees 40% Drop in Solar Panel Installations

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Tesla Inc’s (NASDAQ:TSLA) SolarCity saw a huge decline in solar panel installations during the first quarter of 2017.

Tesla's SolarCity Sees 40% Drop in Solar Panel Installations

SolarCity saw its solar panel installations for the first quarter of the year decrease by roughly 40%. It only put out 150 megawatts of solar generation, compared to 245 MW from the same time last year.

In Tesla Inc’s earnings report for the first quarter of the year, the company says that it was more focused on tackling projects with a higher margin that provide it with cash up front. However, there’s likely more than just that affecting its poor solar panel installations.

It is possible that Tesla’s SolarCity is finally being hit by the decline in interest from its main targets, environmentalist with income to spare. This and maturing markets in major states it operates in are likely hurting its sales, reports Business Insider.

SolarCity also recently announced that it is shifting its focus away from door-to-door sales. Instead it wants to focus on physical retail and online sales to reach new markets. It is also facing a delay on its new solar tile sales, which were supposed to start in April.

The delay of solar tile orders also came with additional bad news. SolarCity will only be releasing two of its solar tile options when the new tiles become available. It was originally planning to release four options. Tesla Inc CEO Elon Musk says that the company will hold the other two solar tile options back for a later release.

TSLA stock was down 5% as of noon Thursday, but is up 37% year-to-date.


Article printed from InvestorPlace Media, https://investorplace.com/2017/05/tesla-solarcity-tsla/.

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