Tesla Struggles Amid Strong Competition
Tesla (NASDAQ: TSLA) has significantly missed its solar-roof installation targets, facing tough competition from GAF Energy and other rivals, as reported by industry analysis firm Wood Mackenzie. The company's average installations per week in 2022 were only 21, with its best quarter reaching 32 installations per week. This performance is much lower than the 1,000-per-week target initially set for 2021.
GAF Energy's Timberline Solar Outpaces Tesla
Wood Mackenzie analyst Max Issokson has noted that GAF Energy's Timberline Solar roofing system is better positioned for widespread adoption. Tesla's Solar Roof potential depends on the company's ability to simplify and streamline installations while reaching a wider customer base. Tesla announced in January that it had more than 85 installation partners, while GAF Energy has 280 partners selling and installing its product.
Labor Costs Challenge Solar Roof Integration
GAF Energy president Martin DeBono told Reuters that their ability to offer building-integrated solar solutions at the same cost as a new roof and new solar comes from reducing labor content. He explained that labor costs for roofing and electrical work were the biggest challenges. Tesla, which acquired SolarCity in 2016, aimed to create a solar product to generate power through solar roof panels and store energy in batteries.
Tesla's Market Share Declines Over Time
Tesla's combined energy-generation-and-storage solution has proven effective withstanding strong winds and hurricanes. However, Wood Mackenzie reported that SolarCity captured a third of the solar panel market in 2015, but Tesla's share has since dropped to about 0.2% in 2021.