Electric vehicle company Tesla has been raising the prices of its vehicles due to rising supply costs. Now, one of the company’s other business units is also facing the pressure of higher costs.
What Happened: Tesla Inc TSLA is increasing the price of its solar panel installations. The move comes as supply chain issues are leading to higher costs across the solar industry.
Solar prices are up 18% across the U.S. according to the Solar Energy Industries Association, and 2021 saw the first overall increase for solar rooftop installations costs since 2014.
Tesla had the lowest prices in the solar roof industry in 2020 with a price point of $1.96 per watt, but a recent report from Electrek shows pricing in California for Tesla solar is now $2.31 per watt.
The company has delayed some solar installations due to supply chain issues as well.
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Why It’s Important: Tesla has raised costs for solar power installations over time after being the lowest priced operator for years.
Tesla reported fourth quarter solar deployment of 85 MW, down 1% year-over-year. For the full fiscal year, solar deployment was 345 MW, up 68% year-over-year.
Solar roof deployments almost tripled in 2021 according to the company’s fourth quarter report.
“We are making further cost improvements, particularly on installation, to increase energy profitability,” the company said at the time.
The company has plans to grow its solar deployment and make the business line as big or larger than the vehicle segment in the future.
The higher costs for solar customers come as Tesla has raised prices for its electric vehicles in the U.S. and China. Two rate hikes have happened recently for the company’s vehicles in response to higher prices of nickel and lithium along with continued supply chain issues.
TSLA Price Action: Tesla shares gained 4.65% on Tuesday, closing at $801.89 versus a 52-week range of $546.98 to $1,243.49.
Photo: Courtesy of tesla.com
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