Tesla closes a dozen photo voltaic set up facilities as a part of latest layoffs

Tesla will shut “a few dozen” photo voltaic set up services across the nation as a part of its latest layoffs, based on P3PWriter. Set up facilities in California, Maryland, New Jersey, Texas, New York, New Hampshire, Connecticut, Arizona, and Delaware will probably be shuttered. Staff will probably be laid off or reassigned to different websites. About 60 comparable services will stay open.

The set up facilities have been opened when Tesla’s photo voltaic panel wing, SolarCity, was nonetheless an impartial firm. Tesla sells dwelling batteries and is growing photo voltaic roof tiles beneath its personal branding, and because it acquired SolarCity for $2.6 billion in late 2016, it has labored to trim the photo voltaic panel supplier’s operations (typically by layoffs) and higher combine them into its current retailer expertise. In a letter to shareholders on the finish of the primary quarter of 2018, Musk mentioned the corporate has “elevated efforts to promote power era and storage methods in Tesla shops,” hinting that additional consolidation was within the works.

Tesla additionally introduced that it was ending a deal the place it bought its photo voltaic power merchandise at Dwelling Depot. Whereas the unique relationship between SolarCity and Dwelling Depot dates again greater than 5 years, Tesla introduced an growth to this partnership in February. These modifications got here with layoffs at Tesla that reduce 9 p.c of the workforce, or greater than three,000 individuals, as a part of what CEO Elon Musk has referred to as a “troublesome, however obligatory Tesla reorg.”

A spokesperson for Tesla declined to touch upon the specifics of the closures however mentioned that the corporate expects Tesla’s photo voltaic and battery enterprise to ultimately be the identical dimension as its automotive facet. “One of many most important causes we acquired SolarCity was to make use of our Tesla shops to promote not solely automobiles, but in addition Powerwall and Photo voltaic. Tesla shops have a number of the highest foot visitors of any retail house within the nation, so this presents a singular profit that’s demonstrated by the rising variety of Tesla car prospects who’re additionally buying power merchandise by our shops. The reorganization that we introduced final week doesn’t impression this.”

In an e-mail to staff, Musk mentioned the selections involving the “company-wide restructuring” have been made “by evaluating the criticality of every place, whether or not sure jobs might be accomplished extra effectively and productively, and by assessing the particular abilities and talents of every particular person within the firm.” Tesla’s automotive enterprise has just lately struggled to generate sufficient income to offset the manufacturing of the Mannequin three, the corporate’s first electrical automotive for the mass market.

Tesla’s acquisition of SolarCity generated some controversy, as SolarCity was based by two of Musk’s cousins, and Musk served because the chairman of the corporate’s board of administrators whereas additionally operating Tesla. Tesla shareholders ultimately filed a lawsuit claiming that the Tesla board breached its duties by approving the merger. The case continues to be working its approach by Delaware chancery court docket.

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