Tesla reported massive drops in solar deployment for the first quarter of 2022, citing the ongoing supply chain crisis as the culprit.
Like other companies throughout the world, Tesla is doing what it can to operate during the material and supply shortages brought on by the pandemic. While it has endured the shortages fairly well — total revenue in Q1 2022 is up 81% from the same time last year — Tesla is feeling the impact as certain solar components become harder to obtain.
In its latest earnings report, Tesla deployed 48 megawatts of solar in Q1 of this year, down by 44% from the previous quarter’s 85 megawatts. The company deployed an average of 86 megawatts per quarter in 2021. Compared to the same time last year, Tesla deployed 48% less megawatts of solar. In its earnings report, the company noted this decrease was caused by “import delays beyond our control.”
“We expect to address the part shortages that limited our progress with batteries and solar, so expect batteries and solar to grow well this year,” said Tesla CEO Elon Musk during the Q1 2022 earnings call.
Zachary Kirkhorn, Tesla chief financial officer, said the company has experienced raw material price increases for multiple quarters and expects the coming quarter to have additional increases.
“The energy business has continued to be impacted by macro conditions more severely than the vehicle business,” said Kirkhorn. “Our storage products are in need of chip supply and new import processes have impacted supply of certain components for our solar systems, which is reflected in our solar volume for the quarter.”
The earnings report states Tesla’s Solar Roof deployments continued to grow year over year, but did not provide further information.
The automotive company is apparently cutting back on Solar Roof installations due to supply issues. According to a report from Electrek, Tesla began delaying installations around the end of December, but current conditions have halted Solar Roofs to a near standstill, leaving some customers with half-finished projects and months-long delays. Electrek said an internal communication states the company is focusing on solar panel rooftop retrofits due to low solar tile supplies.