VSLR - Tesla's New Solar Rental Product Could Decimate Residential Solar Installers
Tesla (TSLA) launched a new solar rent product on Friday. With $100 deposit which will be applied to the first month payment and no long-term contract, this product has the potential to disrupt residential solar market. We see several solar installation companies being negatively affected and see expect a stock price downdraft at these companies.
This article evaluates the product and the implications of this product launch.
First, Some Background
Ever since Tesla's acquisition of SolarCity, the new entity's solar installation business has witnessed an exponential decay. After about 90% drop in installations