Tesla Inc. has started to sell their very own brand of Tesla solar panels in their stores, and hope that these rebranded solar products will be an engine of revenue growth as well as cost synergies for the company. The homeowner will also benefit from harnessing the power of the sun, too, and it would be the perfect combination to recharge the Tesla vehicle in the garage using juice generated from the Tesla solar roof.
Ever since Tesla announced its intention to pick up SolarCity in 2016, the innovative company that is helmed by Elon Musk wanted to do far more than simply owning a solar company. Tesla looks as though they are positioning themselves to have a greater degree of product integration within the Tesla brand umbrella, while offering a design overhaul in the process. In fact, Tesla even altered its corporate name after the acquisition, dropping the Tesla Motors name earlier in 2017. This is a reflection of Tesla CEO Elon Musk's belief that sales of energy products will end up being a major earnings contributor for the company in the future.
Tesla has now made available the sale of its Tesla solar panels in its stores just a month after pre-orders were open, with the SolarCity brand being phased out while new Tesla solar products make way on store shelves. The Tesla Solar Roof comprises of solar tiles which will replace the traditional shingles, and these solar tiles do their bit in contributing solar power to the household. The initial pilot program that sold solar products in Tesla stores were said to be successful enough for the company to move ahead in displaying "Tesla Solar" marketing materials in selected stores.
In Tesla’s Q1 shareholder letter, it mentioned, “Recently, we tested sales of our solar and storage products in several Tesla stores, and saw sales productivity improve 50% to 100% relative to the best non-Tesla retail locations. Based on these results, we are working towards fully staffing more than 70 Tesla stores in the U.S. and abroad with dedicated Tesla energy sales people over the next two quarters.”
With Tesla gaining more retail benefits from such a synergy, the company continues to look for different ways to trim the expensive sales model that SolarCity exhibits. In fact, it was in April that Tesla shut down SolarCity's door-to-door sales business, preferring instead to rely on retail and online sales. The final sales model that Tesla is looking to is this: to have its customers walk into any Tesla store and purchase electric cars, energy storage solutions, and solar products without missing a beat.
Apart from that, there is word going around that Tesla is offering a first look at the Model 3 (which will enter production next month) for more than 400,000 people who have placed a pre-order for the next generation Tesla electric car. This is the first mass-market car from the company for the year, and customers who have pre-ordered their ride will finally be able to have a brief idea on what it will look like when the Model 3 turns up in time for Christmas.
The basic model of the Tesla Model 3 is highly affordable at $35,000 apiece, although with the right number of add-ons, it will end up closer to the $40,000 mark. Those who are interested can choose from red, silver, metallic gray and black colors. Tesla claims that the Model 3 has a driving range of 215 miles on a single full charge, and it will be able to access the largest supercharger network to date. It will be interesting to see how Tesla's Model 3 changes the way electric vehicles work in the industry.