Elon Musk Admits Tesla Made a Major Mistake with Massive Solar Roof Price Hike

Elon Musk Admits Tesla Made a Major Mistake with Massive Solar Roof Price Hike

Elon Musk admits that Tesla made a major mistake that resulted in a massive solar roof price hike. Several customers who signed the contracts were impacted by the price hike and had to pay tens of thousands of dollars toward the solar roof installations.

The Tesla chief executive said during the first-quarter earnings call that they made a mistake in assessing the difficulty of certain roofs and that the complexity of roofs varies dramatically.

For instance, some roofs are pretty straightforward and super easy to install compared to a more fancy house with a complex roof style. He is saying that a one-size-fits-all is not possible and that’s what caused Tesla to price hike existing solar roof installations up to 70%.

Elon Musk further explained if a roof has a lot of protuberances or is not strong enough to hold the solar roof. Then these add up the cost that can be up to three times the initial quotes.

Tesla Massive Solar Roof Price Hike

He confirmed The Verge reports that customers who are not happy with the new quote can get their deposits refunded and cancel the contract.

Even though with a massive price hike for the solar roof, the demand remained strong. But he did not delve into the details as to whether it was coming from new customers or from customers who are still waiting to get solar roof installations that had agreed upon a new higher price tag.

Tesla started offering a free Powerwall to customers who are under contract to smoothen out the price hike. The price hike on average led to between $9,000 and $12,000 increase while the Powerwall that formerly listed on the company’s website sells for $7,500 per unit.

Elon Musk praised the company’s decision to bundle solar and energy storage products, saying that would make the whole solar installation less complex and cost less in general.

Meanwhile, homeowners with existing Powerwall 2 will see a software update that is coming next month. The first major software update will increase the power capacity of Powerwall 2 up to 50% depending on the production date it was made.

Tesla Made Mistake Price Hike Solar Roof Projects

Elon recently announced that Tesla is producing Powerwall 2 Plus which they have been quietly working on it since November 2020. The new Powerwall 2 Plus will have far more power capacity than its predecessor and will support even more appliances thanks to its large storage.

The solar panel roof and Powerwall have helped many homeowners gain energy independence and reduce the overall burden on the electric bill. An islander couple saw their monthly electric bill drop from $1,000 to just under $700 thanks to solar roofs and Powerwall.

Despite the massive price hike, there are benefits to have for getting free energy from the solar and getting refunds when the homeowners overproduce. Elon Musk said that his goal is to turn the residential homes into a distributed power plant to reduce reliance on the energy grid.

After the winter storm that battered Texas and the heatwaves that caused rolling blackouts in California, leaving the homeowners to scramble for stable, reliable energy to power their home. Elon made a point that having reliable energy is critical to redefining and improving the infrastructure to be solid, safe, and efficient.

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