The "great majority" of solar cells being produced at Tesla's factory in upstate New York are being sold overseas instead of being used in the company's trademark "Solar Roof" as originally intended, according to documents reviewed by Reuters.
The exporting underscores the depth of Tesla's troubles in the U.S. solar business, which the electric car maker entered in 2016 with its controversial $2.6 billion purchase of SolarCity.
Tesla has only sporadically purchased solar cells produced by its partner in the factory, Panasonic Corp, according to a Buffalo solar factory employee speaking on condition of anonymity. The rest are going largely to foreign buyers, according to a Panasonic letter to U.S. Customs officials reviewed by Reuters.
Tesla's solar cells are being bought, but not by Americans.
(Score: 3, Insightful) by zeptic on Thursday May 16 2019, @07:47AM (13 children)
What's the problem? I don't get it.
(Score: 2) by bradley13 on Thursday May 16 2019, @10:37AM (12 children)
It's just an indication: SolarCity was doomed, Tesla bought them to bail them out. Which was just dumb: one broke business buying another. The suspicion is that Musk was actually bailing out friends and relatives whom he had encouraged to invest in SolarCity.
AFAIK, SolarCity just isn't very competitive. They made good money for a while from government subsidies, but never really from selling their products on the open market.
Everyone is somebody else's weirdo.
(Score: 5, Insightful) by deimtee on Thursday May 16 2019, @10:51AM (11 children)
Foreign buyers aren't buying them to help out Musk. Electrical power is more expensive in a lot of the rest of the world than in USA. E.g. average in AU is about US$0.20 per kw/h. When prices get that high, solar cells and an inverter make economic sense at a higher cost than they would in the USA. If Musk just sells them to the highest bidder they are all going overseas.
In the meantime, finished goods exports help the US economy, so, agreeing with the GP post, 'what's the problem'?
If you cough while drinking cheap red wine it really cleans out your sinuses.
(Score: 2) by Username on Thursday May 16 2019, @12:30PM (8 children)
Why on earth would anyone import american solar panels? That's the problem I see. All the parts come from china, so it's not a quality difference. Since the parts have to be imported from china, assembled by americans, exported to desired country, there is a x2 additional cost on transportation and tariffs plus american wages. So I doubt it is cheaper. Just the brand name? Can anyone tell the difference between Tesla panels and nobrand panels? Like a big logo on the roof.
(Score: 1, Informative) by c0lo on Thursday May 16 2019, @12:49PM (2 children)
If I'm not mistaken, TFA is about batteries not PV panels.
And, for the moment, the Chinese are busy consuming theirs on public buses and electric cars for their own market.
https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford
(Score: 2) by Immerman on Thursday May 16 2019, @01:34PM (1 child)
First line of the summary:
>The "great majority" of solar cells being produced at Tesla's factory in upstate New York are being sold overseas
Not batteries or even "solar system components", solar cells specifically.
(Score: 2) by c0lo on Thursday May 16 2019, @03:21PM
My bad. Overworked.
https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford
(Score: 4, Insightful) by Immerman on Thursday May 16 2019, @02:03PM (1 child)
They specifically say the *cells* are being made here, so exactly what parts are you talking about coming from China? Raw silicon? Foil backing? Wiring? The protective case of the panel?
Cells are the functional component, and so the place where quality control matters the most. It also sounds like the Tesla factory is actually using a still-uncommon manufacturing process which presumably has at least slightly different strengths and weaknesses than other techniques, and there may be some purchasers who are specifically looking to promote further development and maturation of the process. They're also manufactured under the U.S.'s much more restrictive pollution and labor laws, which will matter to some customers.
(Score: 2) by Username on Thursday May 16 2019, @10:41PM
Well, the story also says tesla buys cells from panasonic. Seems odd a company would make cells then buy them. I just assumed the first part was a typo and they meant the final panel.
(Score: 2) by Spamalope on Thursday May 16 2019, @02:32PM
Why? Tax dodge?
Most of the cost is in assembly.
Export US made cells; Create panels in China; Import 'US' panels with no tariff!
(Score: 2) by bob_super on Thursday May 16 2019, @06:13PM
> Why on earth would anyone import american solar panels?
The point is they do.
American manufacturing making export goods. It's a very good thing.
It also shows that Tesla's solar branch isn't using its capacity, which is bad for Tesla, but given that installations are still climbing, it also means that the competitors are doing well, which is also good.
If installations were going down, or if Tesla/Panasonic didn't find buyers for its cells, that would be bad.
The negative angle is just because of the Tesla magnifying lens. But overall, it's not a bad situation.
(Score: 2) by exaeta on Thursday May 16 2019, @08:16PM
The Government is a Bird
(Score: 2) by Runaway1956 on Thursday May 16 2019, @03:55PM (1 child)
That ^
For as long as the US has produced solar panels, most of our solar panels have been exported. I've read that bit of trivia several times, in the past three decades. Here, in the US, electricity is cheap enough that even our poor people can waste electricity. Few really care about solar, here in the states. And, that's just the way the producers want it. Shipping their product overseas, where it is valuable, means that the relatively few panels they sell here command top dollar.
Sure, an American can go off grid, with a few solar panels, and a wind turbine. But, he's going to pay big money, or he'll do without.
(Score: 2) by deimtee on Friday May 17 2019, @07:45AM
In the rest of the world there is still a perceived (and probably actual) difference in quality between something that has a sticker that says "Made in China" vs one that says "Made in America". Given exchange rates and transport costs, something that is worth exporting from the USA is probably high quality. If you were just going for the cheapest stuff you would end up with "Made in China".
If you cough while drinking cheap red wine it really cleans out your sinuses.
(Score: 0) by Anonymous Coward on Thursday May 16 2019, @01:22PM
From the local Buffalo News,
https://buffalonews.com/2019/05/15/tesla-is-adding-new-products-in-buffalo-as-its-solar-business-slumps/ [buffalonews.com]
This is about the solar cell plant (not a battery plant). The facility was built by NY State and is used by both Tesla and Panasonic.
? There may be some confusion because the Buffalo "Riverbend" plant has also been called a "gigafactory", same name attached to the Nevada battery factory, but based on 1000 MW of yearly cell production capacity.