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Power Businesses United States Technology

Tesla's Solar Factory Is Exporting Most of Its Cells (reuters.com) 210

Most of the solar cells Tesla is producing at its Gigafactory in upstate New York "are being sold overseas instead of being used in the company's trademark 'Solar Roof' as originally intended," reports Reuters. "The exporting underscores the depth of Tesla's troubles in the U.S. solar business, which the electric car maker entered in 2016 with its controversial $2.6 billion purchase of SolarCity." From the report: Tesla has only sporadically purchased solar cells produced by its partner in the factory, Panasonic Corp, according to a Buffalo solar factory employee speaking on condition of anonymity. The rest are going largely to foreign buyers, according to a Panasonic letter to U.S. Customs officials reviewed by Reuters. When the two firms announced the partnership in 2016, the companies said they would collaborate on cell and module production and Tesla would make a long-term commitment to buy the cells from Panasonic. Cells are components that convert the sun's light into electricity; they are combined to make solar panels.

The situation raises new questions about the viability of cash-strapped Tesla's solar business. Musk once called the deal a "no brainer" - but some investors panned it as a bailout of an affiliated firm at the expense of Tesla shareholders. Before the merger, Musk had served as chairman of SolarCity's board of directors, and his cousin, Lyndon Rive, was the company's CEO. [...] Panasonic also produces traditional solar panels at the Buffalo plant for Tesla, but has been selling many of them to other buyers since at least last year due to low demand from the California car company, Reuters reported in August 2018. Tesla last month reported a 36 percent slide in its overall solar sales in the first quarter, adding to previous big drops since the SolarCity acquisition.

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Tesla's Solar Factory Is Exporting Most of Its Cells

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  • Solar City is a dumpster fire. Solar Roofs are the only hope they had and that isn't going so well;

    https://www.technologyreview.c... [technologyreview.com]
      • Re:Dumspter Fire (Score:5, Insightful)

        by deek ( 22697 ) on Wednesday May 15, 2019 @10:00PM (#58600304) Homepage Journal

        Trying to link exploding cars to rooftop solar cells is a bit of a stretch, even for an AC.
        The quality of FUD these days is depressingly low.

        • by Anonymous Coward

          They are only linked by their incompetent engineering, substandard build quality, and conman CEO.

        • by bobby ( 109046 )

          The quality of FUD these days is depressingly low.

          I dunno, I think we're getting some of the highest quality FUD ever these days!

          That and/or people are getting dumber and more gullible. (They get their "news" from Facebook and believe it.)

    • Re: (Score:2, Insightful)

      by Freischutz ( 4776131 )

      Solar City is a dumpster fire. Solar Roofs are the only hope they had and that isn't going so well; https://www.technologyreview.c... [technologyreview.com]

      In the US perhaps where the national leadership thinks oil and coal is the future and tries to kill the competition with artificial trade barriers. Across the pond in Europe solar roofs and battery walls are doing just fine.

      • by Anonymous Coward

        Hey freischutz, did you know Germany is 40% coal?

      • Re: (Score:2, Troll)

        At twice the cost for power, and with significant dependency on coal as well...
        • Re:Dumspter Fire (Score:4, Insightful)

          by rtb61 ( 674572 ) on Thursday May 16, 2019 @12:50AM (#58600808) Homepage

          Can I have a cheap coal plant, NO. I can have a tax free solar power and battery plant though, hmm, the choices. Tesla simply is marketing poorly in the solar power market place and is not properly marketing set recognisable power systems, that the public can recognise and appreciate as a capital investment. Also they have not set up a business to buy excess solar electricity and as a group bargain better prices for that energy output.

          Also it is quite slow in the energy park market. Think of an energy park as a combined electric car carpark and battery station, every second level of the multi-storey carpark being a battery array. The sound business method in there, buy off peak energy at night and store it and the sell it during the day at peak energy prices to the electric cars parked in the building and as back up energy to surrounding structures. Would it make money today, absolutely, just needs to be invested in, double income energy parks right in major metropolitan centres and not out in the country and they can sell nothing, back up energy in an emergency for surrounding commercials entities who need that guarantee (when there is no power failure, they get money for nothing).

          • Also they have not set up a business to buy excess solar electricity and as a group bargain better prices for that energy output.
            For that USA lags regulations and technology - aka grid infrastructure - you can not simply set up a virtual power plant like that in a country that has an energy grid below any third world country.

            Would it make money today, absolutely
            Indeed it would.

        • At twice the cost for power, and with significant dependency on coal as well...

          The cost of power is the same. The difference is you pay for it in taxes (subsidies), reliability (power outages are not common in the first world yet parts of the USA are proposing rolling outages), and ultimately you will pay for it through your medical insurance too.

  • Cells are components that convert the sun's light into electricity; they are combined to make solar panels.”

    It's for razor sharp technical analysis such as the above that keeps me coming back here. There are tons of such negative articles out there, makes you wonder just what exactly Elon Musk did to so piss Wall Street?
    • Or, perhaps. they are just reporting what is happening, without a sinister motive or dark conspiracy?

      • > Or, perhaps. they are just reporting what is happening, without a sinister motive or dark conspiracy?

        Or perhaps Elon Musk didn't co-operate while Wall Street continually shorted his company, which is why they set the SEC on him. This is how it went down, buy a short position in the company, then trash-talk it in the press, wait for the stock to drop and then cash-out, then rinse and repeat. Explains the yo-yoing of the stock price despite a good sales history. Who would have thought the investors wo
  • They had a disasterous Q1, and continue to lose money hand-over-fist [battleswarmblog.com]. SolarCity was an obvious conflict-of-interest move that benefited Musk personally because he was losing his pants on the company. Q4 2018 was the first time Tesla had back-to-back profitable quarters.

    The SolarCity acquisition is just another bad decision in a long string of bad decisions.

    (Now here come the Tesla fanboys to accuse me of shorting the stock/being an oil company shill in 3...2...1...)

  • Availability? (Score:5, Insightful)

    by LostMyBeaver ( 1226054 ) on Thursday May 16, 2019 @12:08AM (#58600724)
    We in Norway, largest marketplace per-capita (by a huge factor) for Tesla have been waiting years for SolarCity. We have sun from 12 to 24 hours a day for 6 months of the year. We have a government who practically pays us to be green. We have almost no climate deniers... though we spend the other 6 months of the year wishing global warming would speed up a bit.

    We cannot buy SolarCity products here. If we could, it would probably catch on pretty quick. I know in my neighborhood, we have agreed to buy 24 of their systems (for 24 rooftops) when they finally become available. Though, we want the Spanish tile version we saw earlier.

    If Tesla is waiting for the US market to happen... they probably are screwed. Americans want coal and gas power. They even clap when Trump makes windmill sounds.
    • by AmiMoJo ( 196126 )

      Why don't you buy solar roof tiles from a different company instead of waiting? There are several similar products on the market.

      • Are there? Rooftop solar is common. Solar "roof tiles" I've never seen from anyone other than Tesla.

        • by AmiMoJo ( 196126 )

          Gaia Solar
          Solecco Solar
          Certainteed (for six years!)
          Luma Solar
          Suntegravv
          RGS

          There are lots of options.

          • Those are solar shingles, not solar tiles like Tesla is trying to sell. These look like asphalt shingles and are ugly. In most cases they only replace part of the existing asphalt shingles which makes the roof have a dark square in the middle of it which is even worse than having solar panels installed (at least for me).

      • Actually no.

        The competitors call them "shingles" but they are only simplified solar panels: https://arstechnica.com/scienc... [arstechnica.com]

    • by indytx ( 825419 )

      If Tesla is waiting for the US market to happen... they probably are screwed. Americans want coal and gas power. They even clap when Trump makes windmill sounds.

      You obviously don't know many Americans. Only a small minority think he's doing a good job or would applaud his windmill impressions. Most people here would never go to a Trump rally. Essentially everyone here thinks that coal is stupid with the exception of those communities in the traditional coal producing regions.

      Personally, I would love to buy a solar roof when mine needs to be replaced as long as it is somewhat cost competitive. It's the cost competitive aspect that is difficult as a I live in an area

  • by Headw1nd ( 829599 ) on Thursday May 16, 2019 @08:19AM (#58602124)
    Wait, so a US company is exporting a manufactured good,and this is a bad thing? Aren't we continually trying to find export markets to balance our trade deficit? Even if the cells are being assembled into panels and shipped back to the US as the article suggests, that is still a net win when the alternative is importing a panel made from cells manufactured elsewhere. I really fail to see the issue here.
  • Consumption of electricity is uneven at a small scale. In your house you might go from zero to 3.5kW just by turning on a dryer. Production of electricity locally is also uneven, the wind might stop, the sun will set. You want to spread both consumption and production around as much as possible, hopefully across a large geographic area. What you really want is a large organization to run this sharing of consumption, maybe lay it out as an interconnected grid and call the organization an electric utility

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