I’ve got to admit I was gravely tempted when I first read about Tesla’s solar roof. Here’s a good article about the product at Greentech Media:
According to Tesla, the product will cost $21.85 per square foot for an average American home — making it competitive with standard tile, metal or slate roofs. You can read more about Tesla’s assumptions here.
Speaking on a briefing call with reporters, Musk said a solar roof covering 40 percent of the average-sized American home would generate 10 percent to 20 percent more electricity than a standard solar system.
“It’s a better product at a slightly better price,” said Musk, comparing the product to conventional roofs.
“It’s the most affordable roof you can buy,” said Peter Rive, SolarCity’s chief technology officer, on the call.
Tesla has been known for making aggressively optimistic statements about its products and its abilities. A typical roof lasts for twenty years or more. Tesla has been around for less than 15 years and it’s lost money every year. What will its “infinity” warranty be worth if the company doesn’t exist in 20 years?
If they had to put down a bond for each roof sold, I doubt that the company could survive.
It’s a company kept alive by subsidies and technophilic investor euphoria, with a stock trading at twice what I’d consider sustainable or desirable.
Your thinking on their roofs is identical to why I won’t buy digital movies and tv through amazon.
I think there is way too much hype with this product, but solar as part of the actual roof does make some sense depending on the house. To really take advantage I think you’d need a home designed with these in mind to maximize the roof area able to collect the sun.
That’s much my view of Tesla. I believe the company bears comparison with Amazon which it greatly resembles. Amazon is building warehouses; Tesla is building car plants. Neither is running a profit at its core business. Both are trying to back a business model out of an IPO.
Amazon has started showing profits and that could continue. Not enough profit to justify its stock price but a profit. I don’t see how Tesla ever does. And who would buy it? If it can’t show a profit and it’s not an acquisition target, what is its future?
I agree with Bens observation with the exception of his valuation opinion, which should be far north of twice.
Today on Asked and Answered:
“And who would buy it? If it can’t show a profit and it’s not an acquisition target, what is its future?”
Traders, and….. Subsidy as far as the eye can see. You see, there are some forms of structural income inequality and corporate welfare that are good……
Now, anyone who doesn’t understand in which camp my investment philosophy resides gets the booby prize.