Tesla Inc (NASDAQ:TSLA) on Wednesday reported USD 286.8 million (EUR 242.2m) in solar and storage revenue for the second quarter (Q2) of 2017, marking a year-on year jump from USD 3.95 million.
Compared to the previous quarter, the company boosted solar and storage revenue by 34% mainly thanks to seasonal growth in solar lease revenue, more cash sales and higher deployment of energy storage systems. Tesla added USD 313 million to solar lease revenue in Q2 after it sold an equity interest in a portfolio of already deployed solar leases.
Gross margin in the period improved to 28.9% from a negative 106.7% a year ago, but declined sequentially from 29.1%.
Tesla, which bought SolarCity (NASDAQ:SCTY) in November 2016, deployed 176 MW of solar capacity and 97 MWh of storage systems in April-June. It noted that deployment of battery storage facilities has increased on a yearly basis, while energy generation deployments have dropped as the company now focuses on "more profitable projects that generate positive cash flow".
In the future, Tesla will be offering its solar and storage products at Tesla stores and through online channels, dropping the previously used door-to-door sales approach. The decision is expected to impact residential solar deployments in the short term but growth is anticipated to resume in the last quarter of the year.
Tesla reported a 37% year-on-year increase in the portion of residential clients who chose to own rather than lease their solar system, saying it expects the upwards trend to continue in the current quarter.
Overall, Tesla remains in the red, even though revenues are rising.
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On announcing its quarterly results, Tesla said it will start production of the Solar Roof products at its Gigafactory 2 in Buffalo, New York before the end of 2017.
(USD 1.0 = EUR 0.844)
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