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Tesla's New Moves With Home Depot And Lowe's Explained

Mar. 02, 2018 1:53 PM ETTesla, Inc. (TSLA)ENPH, FSLR, JKS, PCRFY, HD, LOW149 Comments


  • Tesla continues to make it difficult to measure the performance of its under performing solar and storage businesses.
  • Nevertheless, is it easy to see that Company has significant challenges ahead and is attempting to put its Buffalo factory capacity to use with Home Depot deal.
  • We discuss the intricate relationships between Tesla, Panasonic, Enphase and the recent Section 201 tariff implications.

Readers of Seeking Alpha should know by that Tesla (NASDAQ:TSLA) 10-k filing shows an ongoing and increasing effort effort by management to make Tesla’s business more opaque. This is particularly true when it comes to the troubled solar and storage business. The 10-k now makes it very difficult to separate the performance of these two businesses.

The 10-k did confirm our view is that Tesla Solar Roof business is unlikely to be meaningful in 2018. The poor Solar Roof ramp has significant implications for Tesla and the Company’s Buffalo fab. This article explains how Tesla is dealing with the challenges.

In context of the 10-k, recent news that Tesla is working with Home Depot and Lowe’s in marketing solar and energy solutions should not be a surprise to investors. Due to contractual issues, that we discuss below, Tesla may be forced to ramp its existing solar business to make up for lack of meaningful Solar Roof sales.

According to the Bloomberg article:

“Tesla Inc. is planning a major expansion of its solar division at Home Depot Inc., embarking on a critical test of the mainstream appeal of its renewable-energy products.

The tech pioneer, best known for its electric cars, is beginning to roll out Tesla-branded selling spaces at 800 of the retailer’s locations, the company confirmed to Bloomberg News. The areas, which will be outfitted during the first half of this year, are staffed by Tesla employees and can demonstrate its solar panels and Powerwall battery.

Lowe’s (LOW) -- the second-largest U.S. home-improvement chain, after Home Depot (HD) -- has also been in discussions with Tesla about selling its solar products, said people familiar with the situation. At some point, Home Depot may also offer Tesla’s much-anticipated solar roof, said one of the people, who asked not to be identified because the deliberations

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This article was written by

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Leader of Beyond The Hype
Where emerging technology and truth converge.

Author of Beyond the Hype, a comprehensive emerging technology stock analysis and discussion service on Seeking Alpha Marketplace. Currently, we focus on identifying and investing in the semiconductor, renewable energy, storage, EV, autonomous vehicle, CPU, and GPU markets.

Beyond the Hype is different because it is dedicated to cutting through management and Wall Street commentary and providing fresh and insightful perspectives from a mid-market M&A consultant specializing in the technology and energy industries who's also been an individual Investor for over 25 years. The platform is about growth oriented investments primarily in market leaders and technology leaders. Investment philosophy is long term buy and hold with average holding time of several years.

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Analyst’s Disclosure: I am/we are long JKS, FSLR. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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