LOS ANGELES/SAN FRANCISCO (Reuters) – Electric car maker Tesla Inc’s move last week to cut 9 percent of its workforce will sharply downsize the residential solar business it bought two years ago in a controversial $2.6 billion deal, according to three internal company documents and seven current and former Tesla solar employees.
The latest cuts to the division that was once SolarCity – a sales and installation company founded by two cousins of Tesla CEO Elon Musk – include closing about a dozen installation facilities, according to internal company documents, and ending a retail partnership with Home Depot Inc that the current and former employees said generated about half of its sales.
So it looks like a lot of it impacting their former SolarCity operations for installations, customer service and marketing. It also notably ends their deal with marketing through Home Depot which had generated nearly half of their sales.
Obviously this reflects poorly on their decision to acquire SolarCity and many of these assets in the first place.