Tesla grows energy revenue, preps to start pilot solar roof production
Selling solar panels and EVs at the same location. Author: Mark Dixon.
Tesla Inc (NASDAQ:TSLA) yesterday confirmed it is starting pilot production of the solar roof in the current quarter and reported USD 213.9 million (EUR 196m) in solar and storage revenue for the first quarter (Q1) of 2017.
The fall in deployment is in line with a plan to bet on projects that have higher margin and generate cash up front, instead of focusing on growth in MW deployed at any cost. The portion of residential customers who chose to own rather than lease their solar system rose to 31% of Q1 deployments, from 9% a year earlier.
Tesla also installed 60 MWh of energy storage in Q1.
The company said it tested sales of its solar and storage products in several Tesla stores, which resulted in sales productivity rising 50% to 100% relative to the best non-Tesla retail locations. The plan is now to fully staff over 70 Tesla stores in the US and abroad with dedicated energy sales people over the next two quarters.
“Our energy generation and storage business is positioned for accelerating growth later this year, and we continue to be confident about achieving the cost synergies and cash generation targets established when we acquired SolarCity,” Tesla’s CEO and CFO say in the Q1 update letter.
Overall, the company remains in the red, even though revenues are growing.
(In USD million)
Net loss to
Tesla explained that the increase in GAAP net loss attributable to common stockholders was mainly due to changes in non-cash items related to purchase accounting for SolarCity and foreign currency translation, among other factors.