Tesla halts Solar Roof production as fossil fuel investments expand

Tesla has confirmed it is discontinuing its Solar Roof tile programme, marking a significant retreat from its earlier ambitions in residential renewable energy. Two sources with direct knowledge of the project disclosed to Electrek that the company has ceased production of the tiles, which were designed to allow homeowners to generate power without the aesthetic drawbacks of traditional panels. The decision follows an internal assessment that the product was not financially viable. Despite this withdrawal, the electric vehicle manufacturer will continue to supply conventional solar panels, indicating that it has not abandoned the solar market entirely.

The Solar Roof initiative has been plagued by commercial difficulties since its introduction. In 2016, the company marketed the product to investors as a cost-effective solution for off-grid power generation, citing a price of $22 per square foot. However, customers who proceeded with installations reported that final costs significantly exceeded these initial estimates. This disparity led to a class-action lawsuit, which Tesla subsequently settled. Operational targets were also missed, with the company failing to meet its goal of installing 1,000 units per week. At its peak, installation rates reached only several dozen per week, and over a seven-year period, approximately 3,000 Solar Roofs were installed in total.

This strategic shift occurs as the company pivots towards large-scale solar manufacturing and fossil fuel infrastructure. Reports indicate that Tesla is planning a $10 billion solar factory in Texas, a project named Crystal Sun, which is expected to break ground this year and be completed by 2028. Concurrently, the company’s leadership is increasing reliance on fossil fuels to support artificial intelligence ambitions. The AI startup, which was integrated into SpaceX earlier this year, is reportedly using dozens of gas turbines that burn substantial amounts of fossil fuels. Additionally, the acquisition of a gas turbine manufacturer was reported by the Wall Street Journal. This trajectory contrasts with earlier public statements, including a 2015 remark describing fossil fuel use as the dumbest experiment in history, and a recent decision to remove the word sustainable from the company’s mission statement.