Tesla Pausing Solar Roof Installations; Supply Chain Issues Could Have Some Customers Rained On

Tesla Inc TSLA has faced supply chain challenges for its automotive division and is now pausing a separate division.

What Happened: Tesla is pausing solar roof installations, according to a report from Electrek.

The pause comes due to supply chain issues on its solar roof tiles. Earlier this month, Tesla raised prices on its solar roof tiles and installations.

Electrek obtained communication from Tesla’s solar team that shows tile supply is too low and no new installations will be scheduled.

Electrek also highlights that some customers could be left without a roof for months due to the pause.

A Los Angeles customer reported his roof installation was started in January with the prior roof being removed. A waterproof protective film was put in place that would protect the roof for six months. That timeline is now in jeopardy and could lead to damage to the home.

Related Link: Tesla Q4 Earnings Highlights: $17.7B Revenue Beats Estimates, Production & Delivery Totals And More

Why It’s Important: Tesla saw growth in its solar business in the last fiscal year. Full year solar deployment of 345 MW was up 68% year-over-year. Solar roof deployments nearly tripled in 2021 according to the company.

The company could see increased competition for market share from others over price and supply chain wars.

Over time, the company sees the solar business being bigger than the vehicle segment.

Reports of customers having leaky roofs and problems with installations could lead to increased pressure on Tesla to fix supply chain issues.

TSLA Price Action: Tesla shares are trading flat at $1,095.23 on Thursday.

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