Tesla discontinues Solar Roof tiles due to financial unviability

Tesla is discontinuing its Solar Roof product, the solar-integrated roofing tiles first unveiled by Elon Musk in 2016. According to reports from Electrek citing sources familiar with the matter, Tesla has informed its network of certified third-party installers that it will no longer supply the tiles, opting instead to focus on conventional solar panels.

The decision follows years of operational and financial struggles. While Musk initially aimed for 1,000 installations per week, actual deployment rates were significantly lower, with estimates suggesting only 21 to 32 installations per week at their peak. Data from Wood Mackenzie indicated that only approximately 3,000 homes in the United States had received the Solar Roof since its market debut.

Internal assessments reportedly concluded that the product was not financially viable due to high installation costs, complex labor requirements, and difficulties in scaling production. The Solar Roof was a central component of the pitch for Tesla’s $2.6 billion acquisition of SolarCity in 2016, though subsequent litigation revealed that the initial demonstrations featured non-operational prototypes.

Tesla’s website has already reflected this shift, with the Solar Roof page redirecting to standard solar panel offerings and the product being removed from the company’s energy division navigation menu. The company’s energy portfolio will now focus on solar panels, Powerwall home storage, and Megapack large-scale storage systems.