New data from Wood Mackenzie indicates that Tesla Solar is struggling in the consumer energy market.
Tesla’s Energy products are often an afterthought for consumers when they think of the Tesla brand. By its very nature, Tesla’s flashy expensive cars attract more attention than its practical and stationary solar systems. Nonetheless, Tesla has been working tirelessly to improve its penetration into the consumer solar market, and thus far, its progress seems slow and labored.
According to new data from Wood Mackenzie, initially reported by Reuters, Tesla Solar’s install rate remains significantly behind its 1000 install per week goal, which was set as a target in 2021. Wood Mackenzie states that Tesla Solar installs during 2022 averaged 21 installs per week, with its best-performing quarter only reaching 32 installs per week.
As noted by Reuters, this comes at a time of steep competition within the Solar market. Not only are countless companies canvassing the suburban neighborhoods of America, looking to sell their solar panels before anyone else, but average Americans are finding an increasing interest in the technology.
It remains unclear what the path forward is for the struggling Tesla Solar team, especially as competition seems to be here to stay. Some analysts have argued that, much like Tesla’s vehicle offerings, Tesla Solar could benefit significantly from a price cut and deeper vertical integration, which could help the business cut costs amid a silicon chip shortage.
Tesla Solar has recently advertised that it is looking to increase its number of installation partners across the United States, which could help the company achieve the all-important market penetration it is looking for.
There is no doubt that the manufacturing prowess of Tesla could be its greatest asset as it looks to address its least successful business unit. With numerous manufacturing improvements reportedly on their way, that could be precisely what Elon Musk plans to do. Nonetheless, it is now more apparent than ever that Tesla cannot simply wait for its market share to grow, and it will need to become active as it looks to become a more prominent consumer energy player, both in the United States and globally.