A Model 3 ramp-up whose outcome was a quarterly profit and it was a sign that Tesla’s automobile business finally is nonetheless stable. If that is true, then it is a good time for Tesla to turn its attention to the energy business — comprising solar and energy storage — that has for long taken a backseat to getting the electric auto assembly line in order.
Elon Musk has been broadcasting this message from the time when Tesla reported a surprise profit in the third quarter. On the call with Wall Street experts after the earnings in November, the Tesla CEO stated, “For nearly two years we had to divert a tremendous amount of resources.”
Now Musk claims Tesla is bound for “the really crazy growth for as far into the future as I can imagine. … It would be hard to overstate the degree to which Tesla Energy is going to be a major part of Tesla’s activity in the future,” he stated.
One can barely ignore these claims, Musk stated Tesla Energy could grow to roughly the same size as Tesla’s automotive business, and solar would boost, on a percentage basis, the fastest of any, with storage second.
“I think both over time will grow quicker than automotive,” Musk stated. “They’re starting from a smaller base.” He added, “I think, especially, if you look at sort of — if you look at, like, year-over-year growth, it will be absolutely incredible … over the course of, say, a year, gigantic boost.”
In a recent internal email to Tesla workers, Musk outlined two critical year-end priorities: providing all cars to their customers and increasing the rate of solar deployments by a remarkable degree.
Skeptics point to a range of other factors why Musk may be in solar- and energy-business salesman mode, beyond the Model 3 inflection point. The solar business has in recent times been dealing with more negative than positive news. Tesla is dealing with a lawsuit from shareholders over its controversial 2016 purchase of SolarCity; the solar roof that Musk has been promoting for years is off to a slow start; its solar panel plant located in Buffalo, New York, has been dogged by concerns; and its solar business has faced unfavorable customer-service ratings.
