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tesla\'s store-shuttering strategy may pull the rug out of solar

by:Xingfa      2019-11-07
SAN FRANCISCO (Reuters)-
Tesla\'s sudden decision to close most of its stores around the world has warned about the future of its solar branch, which is paying $2 for business that is falling. 6 billion (1.
97 billion)
The controversial 2016 deal.
Chief executive Elon Musk announced on Thursday that the electric car maker will close its \"many\" stores around the world and sell cars online --
Only remove the only solar sales retail store since Musk\'s partnership with Home Depot in last June.
\"Solar power is now the stepson of Tesla.
They have made two decisions in a row, causing a serious blow to the solar business, and they may regret the Idea of Home Depot, \"said Frank Gillette, chief analyst at Forrester Research.
\"It was not done thoughtfully, it was in a hurry.
Basically, it will hurt them from a brand and marketing perspective, \"Gillette said.
When Tesla offered an offer to SolarCitya debt-laden solar-
Panel sales and installation company created by two cousins in musk-
Its share price is down 70% from all its shares. time high.
Musk described the deal as \"no.
Brainer \"is full of synergies in which both cars and solar systems can be sold to customers.
This has not yet been proven, and Tesla\'s solar business has been shrinking as sales of Model 3 cars become Tesla\'s top priority.
As part of the company
Tesla shut down about a dozen solar installations in last June.
Tesla says all sales of its global energy and solar products are now only online.
The company says about 75% of its current solar sales are generated outside retail stores via the Internet or recommended.
\"Most of our residential solar and Powerwall orders are already placed outside of our retail stores, including online or by way of recommendation, and we believe this will turn to online sales, pairing with a dedicated energy consultant from our support team will produce the best results, a Tesla spokesperson told Reuters: \"This is the most seamless customer experience in the industry. \".
Tesla said the price of its residential solar system fell 25% in November, saving $3,000.
With the help of streamlining the sales business, it averaged $5,000 and said that moving to online sales would increase cost efficiency.
Ending the deal with Home Depot, Home Depot\'s store has generated high passenger traffic, which has a huge impact on Tesla solar\'s sales.
In the fourth quarter, the company deployed 73 MW of solar system renovation, down 21% from the previous quarter, well below SolarCity\'s 200 MW in early 2016.
Total energy production and storage revenue fell 7% from the previous quarter to $371. 5 million.
Apart from selling privateLabel and third
Tesla sells energy storage systems for home and commercial use, so-
Called Powerballs And powerpack.
Tesla says almost all Powerwall-
Place orders only through the network or certain third parties
Solar Installation party
Due to design changes, Tesla said in its 2018 Annual Report that Musk\'s solar roof tile installation speed announced on 2016 was \"slow \".
Tesla has made progress at its solar plant in Buffalo, New York, and at the same time, the tiles will be made there, but have stalled due to Assemblyline problems.
A former solar seller who was fired in January told Reuters that 70% of the solar sales leads came from Home Depot.
Tesla\'s top management \"did not realize the importance of trading with big companies\"
Box retailers, sources say.
\"If you want to sell on a large scale, you have to go after customers,\" the source said . \".
\"Solar energy is not enough for customers to come to you.
Musk said Tesla will still open a small number of stores at high prices.
As a transportation place for galleries and information centers, details of energy products will also be provided.
When a customer orders a car on the Tesla website, during the configuration process, they are informed about the possibility of ordering solar or other energy products.
On January, Tesla said, \"our sales channels are still transitioning from previous partners to the Tesla store and training our sales team to sell solar systems in addition to cars.
But former solar sales told Reuters that Tesla has put solar power in a secondary position, and Tesla-
In the second half of 2018, the brand panel could not even be installed.
A former seller who left the company in January said: \"They will tell us that the focus of the company is Model 3 . \".
\"Model 3 must be successful, otherwise there will be no company.
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