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Tesla discontinues its Solar Roof tiles, not economically viable
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- DeepHorus
Tesla has officially discontinued its Solar Roof tiles, concluding a product saga that began nearly a decade ago. The company informed third-party installers that it will no longer supply the solar tiles, shifting its focus entirely to conventional solar panels. This decision was confirmed by two sources close to the program, with one stating that Tesla internally determined the product was not economically viable.
The Solar Roof was famously unveiled by Elon Musk in October 2016 as a key component of Tesla's strategy to acquire SolarCity for approximately $2.6 billion. At the time, the sleek, integrated roof tiles were presented as a revolutionary product, central to convincing shareholders to approve the merger with the debt-laden solar installer run by Musk's cousins.
Tesla's own website now reflects the product's end, with the dedicated Solar Roof page redirecting to its solar panels section. The term "Solar Roof" has been completely removed from the company's Energy navigation menu. This formalizes a retreat that had been visible for years, as Tesla stopped reporting solar roof deployment figures in its quarterly reports in early 2024.
A major factor in the discontinuation was the stark contrast between the product's initial pitch and its actual market performance. Tesla originally marketed the Solar Roof as costing less than a new conventional roof plus panels, with early estimates around $22 per square foot. However, installed prices ballooned far beyond these promises, leading to a class-action lawsuit that Tesla settled for $6 million in 2023.
Production and installation targets were also never met. Despite CEO Elon Musk's repeated promises of producing and installing 1,000 Solar Roofs per week by the end of 2019, the reality was drastically different. According to data from Wood Mackenzie, Tesla's peak weekly installations were only between 21 and 32 units, and the firm estimates just about 3,000 systems were installed across the U.S. over seven years.
Tesla's pivot now solidifies its focus on conventional solar panels and products like the Powerwall battery system. The move marks the definitive end of a high-profile but ultimately unsuccessful venture that was initially designed to bolster a controversial corporate merger. The company is now channeling its energy into large-scale domestic manufacturing of standard solar panels.
