Tesla develops premium electric cars, and is known as one of the clean energy companies. Electric cars in general are perhaps the most important products that will improve the entire world by relying on clean energy.
So it makes sense for a company like Tesla to have a solar energy company. Indeed, it has been five years since Tesla acquired SolarCity for a whopping $2.6 billion.
And Elon Musk held a conference in Hollywood at the time, in which he discussed the idea of the company’s business, in order to persuade shareholders to agree to the acquisition.
Read also: Tesla breaks records in the third quarter
SolarCity was founded in 2006 by Elon Musk’s cousins, Peter and Linden Rive. Of course, Musk supported this company and was one of the board members. SpaceX, owned by Elon Musk, has also bought a large amount of shares in that company, valued at tens of millions of dollars.
SolarCity’s main idea is to provide homes with solar roofs instead of traditional roofs. These surfaces, of course, absorb and store the sun’s energy. And the idea is certainly very good, as Musk stated in 2016: “The cost of installing SolarCity roofs is lower than the cost of conventional roofs plus the cost of electricity that will be saved.. Can you buy something else?”
Read also: Another incident involving Tesla’s autopilot
Tesla struggles with solar energy
These rooftops with solar panels were expected to be a hit. Especially when the company merges with Tesla. But what has happened is that the numbers of new customers for SolarCity services have plummeted after the acquisition.
That’s where in the fourth quarter of 2017, Tesla reported a 43% decrease in solar products being offered through Musk’s cousins. Later in 2018, the company lost control of the residential solar market.
Also Read: Tesla Brings FSD Beta Program to More Customers
According to a recent report, the company had installed 92 and 85 megawatts of solar power in the first and second quarters of 2021. This is less than half of what SolarCity installed alone in the last quarter before the acquisition.
In addition, the company has transferred a large number of SolarCity employees to the electric vehicle division. On the other hand, it provided a number of employees. The situation worsened for the company after repeated incidents of ignition of those solar surfaces.
Read also: Tesla drivers become stray when Autopilot is activated
As anyone might expect, shareholders have sued Elon Musk, accusing him of making this acquisition solely for the benefit of his family, who owned the company.