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Tesla seeks $1.5bn bond offering while shifting solar strategy

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PV Magazine

The EV, battery and solar company continues to raise record amounts of cash as it ramps Model 3 production. At the same time, Tesla is emphasizing profitability from its solar business, which has undergone a significant transformation since the company bought SolarCity.

There isn’t much of SolarCity left these days. Brothers Lyndon and Peter Rive, who founded the company, are leaving this summer, and a number of other top SolarCity executives are already gone.

Image provided by PV Magazine

Image provided by PV Magazine

The door-to-door sales which helped build SolarCity to the nation’s largest distributed solar company is now gone, replaced by sales through Tesla’s retail outlets and online business.

The company is also moving away from the third-party solar model which it pioneered to a higher portion of direct sales, while scaling back its ambition for growth.

Even the SolarCity brand will soon disappear.

Such changes point to SolarCity’s new role as only one star in the constellation of Elon Musk’s clean energy and transportation businesses under Tesla.

The electric vehicle (EV), battery and now solar company has been focused on the roll-out of its mass-market Model 3, with the first cars rolling off the assembly lines into the waiting arms of customers in late July.

Source: PV Magazine. Reproduced with permission.  

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  • George Darroch

    Tesla is an incredibly strong brand, it makes sense to consolidate around it.

  • john

    Tesla needs the capital expend to deliver the market demand and the sooner they deliver even at a lower profitability due to the need to pay the interest and repay the capital to put in place the equipment to enable the fast growth the quicker Tesla can expand to bring the Model Y to market as it is based on the Model 3 build evidently.
    Once they get through this period and have the equipment in place and the large volume ability the unit cost goes down enabling them to lower the cost to consumers.
    The next raising will be for the next 4 mega factories which it would appear the first two may be in Europe and China.
    Perhaps another one in the USA as to where the last one is no body knows at this stage perhaps it will be for the Tesla Semi and Tesla Pickup Truck.
    All conjecture on my part about the factories however Europe and China look like highly likely.