A shadow over Tesla’s results

Tesla’s solar activity is on the decline according to its latest Q4 2023 earnings report.

The automaker revealed this week that its solar panel activity had dropped dramatically by 36% to a total of 223 megawatts (MW) last year, compared to 348 MW in 2022. The slowdown in solar energy growth is a reality, especially with the reduction or outright removal of incentives, but Tesla is struggling while the United States records a record-breaking year! The United States added 33 gigawatts of solar capacity in 2023, according to SEIA, a solar industry group.

It’s simply a bad year for Tesla Solar, its worst since 2020.

At least part of the problem might stem from a change in Tesla’s strategy, which has shifted from installer to mere provider. The automaker laid off some of its own solar installers last year and canceled numerous “solar roof” installations. The psychological effect is also worth considering, as it is always more reassuring for a customer to have such a system installed by the same company that built it. Only one point of contact in case of trouble…

The other reason is Tesla’s booming energy production and storage activity. The company stated that its energy storage deployments, including household batteries Powerwall and large-scale Megapacks, increased by 125% compared to the previous year. A activity far more lucrative than solar, as it increasingly involves refurbished car batteries. And the further Tesla progresses, the more it recovers.

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