Tomorrow Investor

Could Tesla Be The Next Big Player in the Solar Sector


It looks like the biggest player in the electric vehicle sector expects to take on a bigger share of the growing solar power market. While Tesla has long been known to be a big name when it comes to solar installations, it appears to be undergoing a paradigm shift towards becoming one of the industry’s key suppliers.

In a recent report by energy sector news platform Elektrek, Tesla is transforming its Fremont, CA-based subsidiary SolarCity from an installation firm to a full-fledged supplier. The report cited reliable sources who declared that Tesla has been downsizing the manpower component at its energy offices throughout the United States. 

While no figures have been given as to how many employees have been axed, more layoffs are planned well through the last few months of 2023. By decreasing its staff, Tesla hopes to shift to working with certified installers in order to focus on its product inventory.

What is Tesla Planning to Do?

Through this paradigm shift, Tesla expects to evolve into a product supplier for other installation firms. 

According to Elektrek’s Fred Lambert, Tesla plans to deploy its own newly-developed solar inverter which works with solar panels, solar roofs, and Powerwalls. Once its system is in place, the company intends to use these inverters for the deployment of virtual power plants under the Tesla Electric brand..

A Challenging Relationship

While Tesla acquired SolarCity to secure its position in the solar power sector, its now seven-year-old relationship has not been the easiest.

The original firm was founded by Lyndon and Peter Rive, cousins to Tesla founder Elon Musk. While Musk was already a member of the company board prior to the acquisition, things appeared to go downhill once he took the helm.

Insiders cried foul about damaged equipment, imprudently run operations, as well as issues compromising employee and operational safety.

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