Perhaps a better picture of the state of Tesla’s solar power is the record of sales. In early 2016, SolarCity sold 200 megawatts of solar energy. In the first quarter of this year, Tesla only sold 76 megawatts. But the company said that they expect sales to pick up later this year.
Frank Gillett is an analyst for Forrester Research. He said that despite Tesla’s positive tone, they don’t seem to have a viable strategy when it comes to selling solar power.
Shareholder Opinions
The reduction in the workforce and the closures of SolarCity facilities are cause for doubt among investors. Many believe that recent problems in automotive production are bringing the company down. Tesla is trying to produce 5,000 Model 3s per week after production delays. The delays and now the increased production schedule cost Tesla a lot of money. Many believe the company is now trying to cut costs in other areas by reducing labor.
Investors also think that Tesla should never have bought SolarCity. They see it as a favor Musk did for family members, not a good business decision. Musk also served as chairman on the board of directors for SolarCity before guiding Tesla to purchase it.
