Please ensure Javascript is enabled for purposes of website accessibility

Tesla Begins Canceling Solar Roof Orders

By Rich Smith – Jun 12, 2020 at 7:35PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Deposits made as much as three years ago are being refunded.

It's been more than three years now since electric car giant Tesla (TSLA 2.90%) announced a new product for homeowners who also like electricity ... a solar roof!

Constructed from solar panels manufactured such that they resemble tiles used to build ordinary roofs, Tesla's Solar Roof would fit right into existing neighborhoods, and potentially both add value and dodge HOA covenants at the same time as it generated cheap, renewable energy for the homeowner -- at a price the company claimed would be similar to that of ordinary roofing materials. Consumer demand was immediate, as would-be buyers of Solar Roof began sending Tesla $1,000 deposits to secure their places in line.  

And now, Tesla is giving those deposits back.  

House with a Tesla car in the driveway and a Solar Roof.

Image source: Tesla.

Some of the deposits, at least. As Electrek.co reports today, Tesla has begun contacting persons who paid deposits on Solar Roof years ago, and informing them that Tesla "will not be able to proceed with your project" because the customer's "home is not located within our currently planned service territory" and therefore "[t]he driving distance from our closest warehouse would make it difficult for us to provide you the high-quality service that our customers deserve."

According to Electrek, at least some customers in Oregon and Michigan have received communications to this effect, along with a promise from Tesla to refund their deposits "within 7-10 business days."

At the same time as some customers are having their orders rejected, however, the website reports that overall, "we have seen an increase in solar roof installations" since last year, which suggests that the problems Tesla is experiencing aren't with the product itself, but more with its delivery and installation network.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tesla, Inc. Stock Quote
Tesla, Inc.
TSLA
$249.44 (2.90%) $7.04

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
331%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.