Tesla cancels solar projects in mass, scales back solar division
Tesla has canceled solar projects in mass across the US as the company says that it is shutting down its solar operations in some markets.
After years of its solar business slowing down since acquiring it through taking over SolarCity in 2016, Tesla’s solar division was finally getting some momentum over the last few quarters.
Tesla achieved a record US residential solar deployment in Q2 2022. Last quarter, Tesla also had a strong performance with 94 MW of solar power deployed – up 13% year-over-year.
However, the momentum was not without issue as Tesla had to stop scheduling solar roof projects in most markets in Q3. The automaker focused on deploying the product on new construction projects, like a large one in Austin.
Now we learn that Tesla is canceling many solar projects, including some in advanced stages, and the company is saying that it shutting down operations in some markets.
Over the last three days, Electrek has received half a dozen reports from Tesla Solar customers who have been informed by the company that Tesla would not be moving forward with their projects and canceling the order.
Those customers all received this email from Tesla this week:
Thank you for your interest in Tesla solar. Upon further review of your project, our team has determined that your home is in an area we no longer service. As we cannot complete your order, we have processed your cancellation. You will receive a full refund of any collected deposit within 7-10 business days to the card on file.
This includes customers who had solar panels or solar roofs on order and even some projects that were already designed and permitted. Based on social media channel checks, hundreds of Tesla customers are likely in this situation.
In the email, Tesla writes that it is no longer servicing the areas where those customers are located. We have received reports from customers in major solar markets including the greater Los Angeles area, Northern California, Oregon, and Florida.
The fact that Tesla wouldn’t be covering those areas would be a significant change of strategy as the company has previously talked about only expanding its solar division.
Electrek also learned that Tesla has laid off a number of employees in its solar scheduling, planning, and design department.
In the email to customers, Tesla refers them to “Tesla Certified Installers” in their area.
We previously reported on Tesla’s certified installer program. It started with roofing companies trained to install Tesla’s solar roof, but lately, Tesla has also certified solar panel installers to deploy the company’s “Tesla Energy” ecosystem.
Electrek’s Take
Considering the cancellations, referring to third-party installers, and the layoffs in its own solar planning department, it looks like Tesla might be calling back its own solar installations and instead plans to supply third-party installers.
This would be a significant change in strategy and one of those bits of news where I’d love to reach out to Tesla to ask them what is happening, but you know, Tesla doesn’t need a press relation department according to Elon Musk…
In the meantime, it’s not a good look for Tesla to leave customers who spent time and even money on moving these projects forward – and now they are back to square one.
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Tesla has started to offer discounted financing on Cybertruck as the electric pickup truck undoubtedly turns out to be a flop.
Tesla claimed over 1 million reservations for the Cybertruck, and CEO Elon Musk said he could see Tesla producing 500,000 units per year.
However, that was before Tesla announced that the production version would be much more expensive and have a shorter range than what was initially announced.
The Cybertruck has now been in production for a year and a half, and it looks like Tesla would be lucky to sell about 10% of Musk’s goal of 500,000 units.
The automaker doesn’t report Cybertruck sales, but it is estimated that Tesla delivered roughly 40,000 Cybertrucks in 2024, and it is expected to have even more issues selling the truck this year.
Tesla has taken several steps to help sales.
We reported that Tesla launched Cybertruck leases to help move vehicles. The company is even still tucked with “Foundations Series” Cybertrucks, and we found out that Tesla buffed “Foundations Series” badges out of some trucks to sell them as cheaper regular Cybertrucks.
For the remaining “Foundations Series,” which there still are despite Tesla switching to regular Cybertruck production in October, Tesla has even offered free Supercharging for life.
Now, Tesla is stepping up its game, and it is offering discounted financing on new Cybertruck orders:
Tesla announced 1.99% APR for a limited time:
1.99% APR available for a limited time for well-qualified buyers
WIthout the “promotion”, the rate for excellent credit is 5.84%.
While Tesla is discounting the rates, it is not discounting them as much as for new Model 3 orders.
We reported earlier this week that Tesla offers 0% and 0.99% with $0 down on new Model 3 orders in the US until the end of the quarter.
Electrek’s Take
It is very possible that Tesla can’t sell more than 10,000 Cybertrucks this quarter, which would extrapolate to 40,000 units per year or less than 10% of what Elon said he would see Tesla delivering.
Now, the cheaper single motor Cybertruck should help, but by how much? It could bring Tesla to 20-30% of the volume Elon saw possible?
I think it’s fairly clear that the Cybertruck is a flop.
Tesla launched a single new vehicle in the last 5 years and it is a flop.
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Environment
Toyota launched its cheapest EV in China and it crashed the server starting at just $15,000
Toyota looks to grab a bigger share of the world’s largest EV market as it takes aim at BYD and other low-cost leaders. On Thursday, Toyota launched its cheapest EV in China, the bZ3X, starting at roughly $15,000. The new electric SUV crashed the server with over 10,000 orders in an hour.
Meet Toyota’s cheapest EV in China, the bZ3X
The bz3X is Toyota’s “first 100,000 yuan-level pure electric SUV” in China and its cheapest EV to hit the market so far.
Toyota’s Chinese joint venture, GAC-Toyota officially launched the “Bozhi 3X,” or bZ3X for short, in China on March 6. Shortly after, the company said orders for its new electric SUV were “so popular that the server crashed” after revealing prices start at just over $15,000 (109,800 yuan).
After securing over 10,000 orders in just one hour, Toyota boasted again that “the server is overwhelmed.” The launch comes after blind pre-orders opened in December, starting at just under $14,000 (100,000 yuan).
The bZ3X is available in two versions, with or without its full-scenario smart driving tech. The non-smart tech model starts at 109,800 yuan ($15,000) with five trim options while the smart driving model starts at 149,800 yuan ($20,500).
For 159,800 yuan ($22,000), the range-topping “610 Max” trim provides up to 610 km (379 miles) CLTC range from a 67.92 kWh LFP battery. The base “430 Air” gets up to 430 km (267 miles) from a 50.03 kWh LFP battery pack.
Toyota said the interior provides “a mobile space that is comfortable as home,” with front and rear seats that can fold down to provide nearly 10 feet (3 meters) of space.
Inside, the electric SUV has a 14.6″ infotainment screen with voice recognition and an 8.8″ driver display. It also includes a two-spoke multi-function steering wheel.
Toyota’s new bZ3X is its first vehicle with the Momenta 5.0 Intelligent Driving System. Powered by NVIDIA Drive AGX Orin X, it comes with 25 ADAS features, such as parallel parking, remote control parking, high-speed pilot, light traffic assist, and blind spot monitoring.
GAC-Toyota claimed it will be “one of the first automakers in the world to realize a one-stage end-to-end intelligent driving model.” With human-like intelligence, the vehicle “gets smarter and better with use.”
At 4,600 mm long, 1,875 mm wide, and 1,645 mm tall, Toyota’s cheapest EV in China is about the size of BYD’s Yuan Plus (Atto 3) at 4,455 mm long, 1,875 mm wide, and 1,615 mm tall. Starting at 115,800 yuan ($16,000), Toyota’s new bZ3X slightly undercuts BYD’s electric SUV.
What do you think of Toyota’s new electric SUV? Would you buy one for around $15,000? We’ll keep dreaming.
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