Tesla recently announced that Giga New York has built enough Solar Roofs of 1,000 homes in one week, corresponding to a production of 4MW worth of the photovoltaic tiles in a seven-day period. The news bodes well for Tesla’s Solar Roof business for 2020.
“Congratulations Giga NY team!” said Tesla CEO Elon Musk. Giga New York reaching a production rate of at least 1,000 4MW Solar Roof V3 units a week, is a good indication of Tesla Energy’s trajectory in the near future.
Steven Ryan from Solving The Money Problem predicted that Tesla Solar products could be worth billions once the company ramps the business' production and sales. Based on Ryan’s calculations, if Tesla captures only 5% of the re-roofing market, which would be equivalent to 250k roof installations per year, the company could make $10 billion in revenue at an average price of $40,000.
Congratulations Giga NY team!— Elon Musk (@elonmusk) March 15, 2020
If Giga New York continues to produce 1,000 Solar Roof V3 units a week and installations cost an average price of $40,000, Tesla would make $160 million in a month or $480 million in one quarter—-provided that all roofs produced are installed in homes.
The numbers above are only an estimate, as the costs of Solar Roof tiles could change. According to a previous Tesmanian report, Solar Roof installations are increasing rapidly, partly because a Tesla team of 6-7 can install Solarglass tiles in just 7-14 days. Still, the fact remains that Tesla Energy is moving towards increased output and profitability.
Given Tesla’s constant pursuit for efficiency, Giga New York may already be finding ways to increase its production per week. Even more notable is the fact that Ryan’s mathematical equation was limited to Tesla solar sales in the United States alone. Giga New York’s Solar Roof tiles will eventually be shipped and installed in other countries later this year.
Elon Musk said as much in a Tweet last month. “Looking forward to international expansion later this year,” Musk said, after announcing the Solar Roof installation ramp in the USA.
Australia alone is ripe for Tesla’s Solar Roof V3. Based on recent statistics by SunWiz, Australia’s residential solar industry has remained strong despite COVID-19, which has had negative repercussions in other markets and industries.
News about operations in Giga New York and Tesla Solar Roof has been sparse for the past couple of years due to Tesla’s concentration on Model 3 production and subsequent ramp. Ever since the beginning of 2020, however, Tesla Energy has been running on full throttle, thanks to its Solar Roof V3 product.
Featured Image Credit: TeslaFollow @PurplePanda88