Tesla Takes Solar Tile Roofs Nationwide: What Investors Should Know

Electric vehicle company Tesla Inc TSLA has gotten praise for its business segments outside of vehicles: solar power, energy storage and others. The company’s solar business could get a lift with expansion highlighted in a recent Electrek article.

What Happened: Tesla has expanded its solar tile roof installation to cover all customers nationwide.

Previously, only residents in approved markets were eligible to apply for a solar tile roof from the company. Many of the approved markets were located near Tesla Energy warehouses due to the need for installation crews.

Any potential customer can submit an order request for the Tesla solar tile roof. Tesla surveys the houses prior to moving on an installation and has been known to be selective about which roofs it selects, according to the report.

Electrek reports Tesla has been certifying third-party roofing companies to help install the solar roof tiles.

Related Link: Tesla Q2 Earnings Recap: 98% Revenue Growth To $11.96B, Semi Shifts To 2022

Why It’s Important: Tesla continues to highlight the growth of its solar business on its earnings calls. The solar panel business has been the bulk of the segment, but strong demand for solar tile roofs could lead to higher overall growth for the business segment.

“Solar roof deployments grew substantially both YoY as well as sequentially in Q2,” the company said.

Second quarter solar deployed was 85 MW, up 215% year-over-year and down from 92 MW in the first quarter. The figures could show that the roof demand is outpacing the company’s solar panel segment.

Tesla got rid of its customer referral for electric vehicles earlier this year but kept a referral for solar customers.

The company said solar roof tiles could surpass all solar panel installations by the end of next year.

By opening up installations nationwide and using third-party roofing companies, the solar business could get a whole lot bigger for Tesla later this year.

TSLA Price Action: TSLA shares were trading 2.36% higher at $801.24 Thursday afternoon.