SolarEdge‘s stock tumbled Tuesday after the company gave weak guidance for the first quarter, as the residential solar market continues to face headwinds from high interest rates and depressed demand.
SolarEdge expects revenues of $175 million to $215 million for the first three months of 2024, well below Wall Street’s expectations of $406 million. The company shares fell as much as 23% in extended trading.
Here’s what SolarEdge reported for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly known as Refinitiv:
Loss per share: 92 cents adjusted, vs. $1.17 expected.
Revenues: $316 million, vs. $354 million expected.
On a generally accepted accounting principles basis, SolarEdge reported a net loss of $162.4 million for the fourth quarter, or $2.85 per share, compared to a net profit of $20.8 million in the year-ago period. Excluding certain items, the company reported a loss of 92 cents per share for the final three months of 2023, beating the $1.17 loss per share expected by Wall Street.
SolarEdge’s posted revenues of $316 million for the quarter, down 65% from the $890.7 million in sales the company reported in same period in 2022.
SolarEdge CEO Zvi Lando said the company struggled with a weaker market in the second half of 2023 due to high interest rates and lower prices, which saddled the company with inventory. The company primarily manufacturers inverters that convert solar power into useable electricity.
“We continue to face challenges from general market dynamics as well as the inventory levels of our products in the channels due to the abrupt slowdown of demand in the second half of 2023,” Lando told analysts during the company’s earnings call.
The struggling European residential solar market should bottom in first quarter and improve afterward, Lando said. In the U.S., the residential market is not expected to improve until interest rates come down, according to the CEO.
The inventory backlog SolarEdge faces is not expected to clear until the end of 2024, according to the CEO. The company is slashing 16% of its workforce, closing some manufacturing sites, and exiting certain businesses to reduce costs in the face of weakening revenue, Lando said on the earnings call.
A new, all electric Peterbilt 579EV is in-service at Honda’s Lincoln, Alabama assembly plant, where it’s busy transporting newly-built Honda cars from the plant to a nearby railhead for shipment to dealers across the country.
Part of a pilot program between Honda, Alabama Power, and Virginia Transportation Corp., the new electric semi truck will help stakeholders gather data about the practicality and performance of the battery-powered Pete and use it to generate case studies for broader electrification initiatives. Other supporters of the pilot project include the Alabama Clean Fuels Coalition and, of course, Peterbilt.
“We remain committed to delivering for our customers and the environment,” offered Leo Doire, owner and CEO of Virginia Transportation Corp. “Our new Peterbilt 579EV model will be tested to determine how well it performs against the high productivity demands of our operations. The partners we have at the table will help us maximize this opportunity and prepare to scale up if we get the results we are hoping for.”
The truck itself has been spec’ed to be perfect for the kind of short haul and drayage applications Honda has in mind. This particular Peterbilt 579EV is fitted with PACCAR’s 400 kWh battery and a 670 hp electric motor good for an impressive 2,050 lb-ft of peak torque at 0 rpm.
The truck offers 150 miles of operating range and can be charged in about 3 hours on a 120 kW charger installed specifically for that purpose. A charger, it should be noted, that was partially paid for by Alabama Power.
“Alabama Power’s ‘Make Ready’ program provides businesses with valuable rebates to help reduce the upfront costs of installing EV infrastructure,” says Alabama Power Electric Transportation Manager Hasin Gandhakwala. “We are committed to partnering with customers who are exploring state and federal grant opportunities. Alabama Power is dedicated to advancing EV technologies to better serve the needs of our customers.”
With the big Pete’s 82,000 lb. GVWR and 150 miles of range between charging sessions, it seems like these guys will be making a lot of back-and-forth runs between the Honda plant and the CSX terminal to me. Here’s hoping they see the benefits of electrifying the rest of their vehicle transport fleets somewhat sooner than later.
On today’s episode of Quick Charge, we’ve got big solar breaking ground all over, despite the incoming administration’s supposed lack of love for home-grown clean energy. Our guests today walk us through home solar, energy storage, and more.
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Tesla is now using ‘Tesla Electric’, its electric utility service in Texas, to help sell cars with a new incentive.
After gaining experience through its virtual power plants (VPPs), Tesla took things a step further with the launch of “Tesla Electric” back in 2022.
Instead of reacting to specific “events” and providing services to your local electric utilities, as Tesla Powerwall owners have done in VPPs in California, Australia, and a few other markets, Tesla Electric is actively and automatically buying and selling electricity for Tesla Powerwall owners – providing a buffer against peak prices.
The company is essentially becoming an energy retailer.
Tesla Electric is currently only available to Powerwall owners in Texas and the UK, but the company has plans to expand its products through this new division.
The company has been growing its Tesla Electric userbase in Texas and now it plans to use it to help sell cars.
Tesla has two different plans under the program:
Feature
Tesla Electric Fixed Plan
Tesla Electric Dynamic Plan
Pricing Structure
Competitive fixed rate for electricity, with a discounted rate during low-cost hours.
Competitive variable rate, with higher rates during peak demand periods.
Contract Term
12-month commitment.
Month-to-month flexibility.
Unlimited Vehicle Charging
Available for an additional $15/month per vehicle, allowing unlimited charging.
Available for an additional $25/month per vehicle, allowing unlimited charging.
Powerwall Credits
Earn $400 credit per year per Powerwall by participating in the Tesla Virtual Power Plant, with Tesla managing the Powerwall to share energy with the grid when needed.
Earn $120 credit per year per Powerwall by participating in the Tesla Virtual Power Plant, with the customer managing the Powerwall to optimize earnings.
Energy Sharing with Grid
Sell energy back to the grid at a fixed rate per kWh.
Sell energy back to the grid at 90% of the real-time market price per kWh.
The first one enable you to charge your electric car for just $15 a month.
With this new incentive, Tesla is brining that down to $5 a month for a year for people who take delivery by the end of the year:
Get $5/mo Unlimited Overnight Charging With Tesla
To get unlimited overnight charging for $5 per month per vehicle for a full year, you must complete the following steps by December 31, 2024:
Order and take delivery of a new Tesla vehicle
Sign up for the Tesla Electric Fixed Plan
To be eligible, you need to live in an area of Texas that allows you to choose your electricity provider, be a new Tesla Electric member and take delivery of a new Tesla vehicle. Promotion is subject to change at any time.
This appear to be part of Tesla’s effort to deliver a record number of more than 515,000 vehicles in Q4 in order for its annual deliveries not to be down for the full year.
ver the last few weeks, we have been reporting on a series of sale incentives that Tesla has put in place to make sure it has the demand to achieve this record quarter.