"It's Been A Difficult Few Days" - Musk Shutters 'SolarCity Facilities' Across 9 States

Nobody could have seen this coming...

In the first quarter of this year, Tesla installed 76 megawatts of solar systems - down from SolarCity’s more than 200 MW a quarter in early 2016, when it was the leading player in the industry. In announcing quarterly results in February, Tesla said growth in solar deployments would resume later this year.

Just a week after laying off 9% of Tesla's non-Tesla vehicle production employees (and reminded investors that "profit is obviously not what motivates us") Reuters  reports that Elon Musk will sharply downsize the residential solar business it bought two years ago in a controversial $2.6 billion deal, according to three internal company documents and seven current and former Tesla solar employees.

The latest cuts to the Tesla division once known as SolarCity include closing about a dozen installation facilities, according to internal company documents, and ending a retail partnership with Home Depot that reportedly generated about half of its sales.

“We continue to expect that Tesla’s solar and battery business will be the same size as automotive over the long term,” the company said in a statement to Reuters.

While Reuters reports that Tesla declined to comment on which sites it planned to shut down, how many employees would lose their jobs or what percentage of the solar workforce they represent; the internal email said that the facilities targeted for closure were located in California, Maryland, New Jersey, Texas, New York, New Hampshire, Connecticut, Arizona and Delaware.

Which is ironic coming just months after California signed into law a "solar panel on every new home" program.

“It’s been a difficult few days - no one can deny this,” a Tesla manager wrote in a separate internal email, sent to customer service employees shortly after the cuts were announced.

The shuttering of these new facilities (and potentially further layoffs across call centers) raises new doubts about the viability of cash-strapped Tesla’s solar business and Musk’s rationale for a merger he once called a "no brainer" which many have blasted as a bailout of an affiliated firm at the expense of Tesla shareholders.

All of which, we are sure encourages the class-action lawsuit against SolarCity, as the following epic tweetstorm from @TeslaCharts so conclusively exposes...

Still a no brainer, Elon?

Comments

MozartIII Clock Crasher Thu, 06/21/2018 - 21:08 Permalink

So the current administration is not going to give billion's of dollars to make solar power work! Ear's is missed by †he entitled fools of Silicone valley. Enjoy your shorts ladies & gentleman. Solar is apparently screwed...

 

Nice bucket list Mr. Orange Julius! I did not vote for you (I did not vote), but you are actually achieving your campaign promises. Keep rocking dude! We can expect some definite bumps in the road.... Time will tell.

In reply to by Clock Crasher

jcaz gatorengineer Thu, 06/21/2018 - 22:58 Permalink

So California hands them the biggest gift there will ever be in the history of solar, and Tesla closes shop on them?

Classic.

Now ALL that Solar City debt is the responsibility of the cars- half of TSLA's projected cash flow just left the building.  No serious money is going to loan this guy another dime;

But hey, at least Elon and his cousin get out whole, which was probably the entire plan.......

In reply to by gatorengineer

Adolfsteinbergovitch DjangoCat Fri, 06/22/2018 - 00:53 Permalink

Let's worry about this in due time. 

In the meantime it's probably been a difficult week for musk, like in maan I broke my shoelace this morning yeah come on dude don't you understand real pain? 

But I haven't heard anywhere that he would have to give back all that money he pocketed earlier. 

So was it really that difficult mr. Musk? Really? Doh.

Enron v2.

Oh and btw, what's with these SpaceX rockets? 

In reply to by DjangoCat

Boxed Merlot max2205 Fri, 06/22/2018 - 03:58 Permalink

...one day....POOF it's all gone...

I can see it already, Hollywood will remake Back to the Future Part XX and feature a self immolating Tesla cart designed for use exclusively in government sanctioned free zones, where only high priests who have paid their dues to the supreme one are allowed to travel while the rest of us plebes are relegated to the clogged and forever sluggish lanes of mere earthly travel, governed by lights, cameras and the ever present threat of receiving credit deducting fines for trespassing into the "forbidden zones".

Coming soon to a handheld device in your possession.

In reply to by max2205

Jtrillian gregga777 Fri, 06/22/2018 - 09:06 Permalink

IF you don't know what a LFTR is, then now is the time to google it.  LFTR's will provide enough energy to sustain humanity for multiple generations... they are a lot safer too. 

But the REAL question you should be asking yourself is why you've never heard of them and why they aren't in widespread production today. 

In reply to by gregga777

just the tip Occams_Razor_Trader Fri, 06/22/2018 - 04:18 Permalink

it's obvious that spaceX is the key.  elon gets taxpayer money to fund spaceX, and a little left over to cover tesla expenses, or props if you prefer, and some other left over money to keep the lights on at solar city.

tesla and solar city will not fail.  elon has jerome on speed dial.

there are two big non-crewed events in august for spaceX, they will be successful, and then in december is a crewed launch for spaceX.  at that point tesla and solar city will be flush with cash, shipped in on pallets in the middle of the night.

this comment is getting so dry, and boring, i'm going to youtube.

In reply to by Occams_Razor_Trader

EddieLomax pparalegal Fri, 06/22/2018 - 07:35 Permalink

While Trump has taken the white house and cut off the federal spigot of free cash, I don't see anything changing at state level.

Now Tesla and other heavily subsidized companies are not just green and trendy, but also significant employers.  So will states like California really let them crash?

My guess here is no, so I wouldn't be joining in the short party.  If anything this is great news though since the lefties have to pour their meagre funds into Tesla while not being able to afford all the other trendy and progressive policies for all the "undocumented" democrat voters they welcome in.

It also means that they are more susceptible to the influence of federal cash, meaning Trumps Whitehouse has more influence, it will be good to see that wall built.

In reply to by pparalegal

eatthebanksters El Oregonian Thu, 06/21/2018 - 21:43 Permalink

Can't it be more clear why Elon recently stated he's a socialist and why Tom Steyer absolutely hates Trump?  Both have their fortunes invested in companies that will not succeed without massive infusions of taxpayer money.  Funny how when the money gets cut off the truth comes out, and in Steyer's case the invective as well.  I'll smile some day when that turd won't have two nickels to rub together.

In reply to by El Oregonian

Moving and Grooving cheech_wizard Fri, 06/22/2018 - 18:25 Permalink

The deal was you needed a powerhouse for every so many users, and even then, with few electrical appliances, there would need to be one every 10 blocks or so. I think that means one per 10 city blocks (this was NYC, I believe). They were nasty coal-powered things.

 

Thank God for N. Tesla. He foresaw alternating currents' advantages and sorted it out. Lots of other things too. He transmitted electricity through the air for 10 miles in Colorado once. He was building trans-oceanic through-the-air communication systems based on the electricity transmission technology as well.

 

His failures as a businessman, in particular with patent enforcement, led to his financial failure. Lots of help there from Westinghouse as well. 

 

.

In reply to by cheech_wizard

salv0 Clock Crasher Thu, 06/21/2018 - 23:12 Permalink

TSLA  will be a 10-25 stock ,   but at this time the short interest is huge a crowded trade that is hyped further by Musks reputation and fame this is will get old very quick and it will be time to short this subsidized pig likely in the next 3-4 mos. with the downside target in the next 12 -16 mos. Tesla will become 0ne of the 3000 failed auto cos. in the last 100 yrs.

American motors was a better bet than Tesla will ever be.BMW ,Toyota ,GM and a group of Chinese auto cos. have better cars and the infrastructure and trained workers to accomplish this within the next year.

Tired of hearing the whinning and lying billionaire prick who has been subsidized by the US government and wall street for too many years!

In reply to by Clock Crasher