Energy
Tesla Energy makes headway in customer acquisition costs, drops in US rankings
The results of Wood Mackenzie Power & Renewables’ rankings of solar providers in the United States has revealed some interesting details about Tesla Energy’s current strategies. During the first quarter of 2019, Tesla Energy was overtaken by Vivint Solar as the US’ second-largest residential solar provider. Despite this, the electric car and energy company was able to dramatically reduce its customer acquisition costs, a key component in the solar business that could result in long-term advantages.
During the first quarter of 2019, Tesla claimed 6.3% of the US market, a far cry from Solar City’s peak of 32.6% in 2014. These declines do not seem to mean that Vivint gained market share at Tesla’s expense, as the solar provider also saw its market share shrink in Q1, from a high of 11.6% in 2014 to 7.3% in 2019. Considering the current trends in the US’ residential solar market, WoodMac analysts are currently forecasting a nearly flat 3% growth for the year. Senior WoodMac analyst Austin Perea noted that a significant contributor to this trend is Tesla’s softer efforts at pushing its solar business, as indicated by the company’s ongoing shift to an online sales model.
Yet, despite the downtrend in Tesla’s market share in the US residential solar market, the company has been exhibiting a dramatic reduction in its customer acquisition costs. During the final six months of 2018, for example, Tesla spent around $0.40 per watt to acquire customers, and this amount would likely get even lower. WoodMac analysts have stated that Tesla could spend as little as “close to a quarter” per watt by the end of 2019.
It should be noted that customer acquisition costs are currently among the most expensive portions of residential solar systems, accounting for 21% of total expenses in 2018. Vivint and Sunrun, the two residential solar providers that have overtaken Tesla in market share over the years, are no exception. WoodMac notes that currently, Vivint’s customer acquisition costs stand at $0.94 per watt, while Sunrun’s costs run at $0.90 per watt. Perea notes that Tesla’s notably lower customer acquisition costs are partly due to the company’s diverse business.
“With current saturation levels, customer acquisition costs are not going to come down. Tesla understands where the cost stack is right now, and they’re able to rely on other business units. They’re diversified in a way that other models aren’t. I’m not saying that Tesla is doing the right thing here, but I think they understand that existing customer acquisition costs aren’t going anywhere. It’s becoming a fairly well-respected product at a cheaper price point than some of its primary competitors. That’s because they’ve been reducing their customer acquisitions costs actively,” the WoodMac senior analyst said.
Tesla CEO Elon Musk has pledged to ramp the company’s solar business, which, according to legendary investor Ron Baron, has the potential to be worth $500 billion on its own. Tesla Energy has largely taken a backseat to the company’s electric car business, particularly during the Model 3 ramp. Nevertheless, with the electric sedan’s production humming along, it might not be too long before Tesla commits itself to ramping its residential solar business fully.
Energy
Tesla Powerwall distribution expands in Australia
Inventory is expected to arrive in late February and official sales are expected to start mid-March 2026.
Supply Partners Group has secured a distribution agreement for the Tesla Powerwall in Australia, with inventory expected to arrive in late February and official sales beginning in mid-March 2026.
Under the new agreement, Supply Partners will distribute Tesla Powerwall units and related accessories across its national footprint, as noted in an ecogeneration report. The company said the addition strengthens its position as a distributor focused on premium, established brands.
“We are proud to officially welcome Tesla Powerwall into the Supply Partners portfolio,” Lliam Ricketts, Co-Founder and Director of Innovation at Supply Partners Group, stated.
“Tesla sets a high bar, and we’ve worked hard to earn the opportunity to represent a brand that customers actively ask for. This partnership reflects the strength of our logistics, technical services and customer experience, and it’s a win for installers who want premium options they can trust.”
Supply Partners noted that initial Tesla Powerwall stock will be warehoused locally before full commercial rollout in March. The distributor stated that the timing aligns with renewed growth momentum for the Powerwall, supported by competitive installer pricing, consumer rebates, and continued product and software updates.
“Powerwall is already a category-defining product, and what’s ahead makes it even more compelling,” Ricketts stated. “As pricing sharpens and capability expands, we see a clear runway for installers to confidently spec Powerwall for premium residential installs, backed by Supply Partners’ national distribution footprint and service model.”
Supply Partners noted that a joint go-to-market launch is planned, including Tesla-led training for its sales and technical teams to support installers during the home battery system’s domestic rollout.
Energy
Tesla Megapack Megafactory in Texas advances with major property sale
Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet.
Tesla’s planned Megapack factory in Brookshire, Texas has taken a significant step forward, as two massive industrial buildings fully leased to the company were sold to an institutional investor.
In a press release, Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet. The properties are 100% leased to Tesla under a long-term agreement and were acquired by BGO on behalf of an institutional investor.
The two facilities, located at 100 Empire Boulevard in Brookshire, Texas, will serve as Tesla’s new Megafactory dedicated to manufacturing Megapack battery systems.
According to local filings previously reported, Tesla plans to invest nearly $200 million into the site. The investment includes approximately $44 million in facility upgrades such as electrical, utility, and HVAC improvements, along with roughly $150 million in manufacturing equipment.
Building 9, spanning roughly 1 million square feet, will function as the primary manufacturing floor where Megapacks are assembled. Building 10, covering approximately 600,000 square feet, will be dedicated to warehousing and logistics operations, supporting storage and distribution of completed battery systems.
Waller County Commissioners have approved a 10-year tax abatement agreement with Tesla, offering up to a 60% property-tax reduction if the company meets hiring and investment targets. Tesla has committed to employing at least 375 people by the end of 2026, increasing to 1,500 by the end of 2028, as noted in an Austin County News Online report.
The Brookshire Megafactory will complement Tesla’s Lathrop Megafactory in California and expand U.S. production capacity for the utility-scale energy storage unit. Megapacks are designed to support grid stabilization and renewable-energy integration, a segment that has become one of Tesla’s fastest-growing businesses.
Energy
Tesla meets Giga New York’s Buffalo job target amid political pressures
Giga New York reported more than 3,460 statewide jobs at the end of 2025, meeting the benchmark tied to its dollar-a-year lease.
Tesla has surpassed its job commitments at Giga New York in Buffalo, easing pressure from lawmakers who threatened the company with fines, subsidy clawbacks, and dealership license revocations last year.
The company reported more than 3,460 statewide jobs at the end of 2025, meeting the benchmark tied to its dollar-a-year lease at the state-built facility.
As per an employment report reviewed by local media, Tesla employed 2,399 full-time workers at Gigafactory New York and 1,060 additional employees across the state at the end of 2025. Part-time roles pushed the total headcount of Tesla’s New York staff above the 3,460-job target.
The gains stemmed in part from a new Long Island service center, a Buffalo warehouse, and additional showrooms in White Plains and Staten Island. Tesla also said it has invested $350 million in supercomputing infrastructure at the site and has begun manufacturing solar panels.
Empire State Development CEO Hope Knight said the agency was “very happy” with Giga New York’s progress, as noted in a WXXI report. The current lease runs through 2029, and negotiations over updated terms have included potential adjustments to job requirements and future rent payments.
Some lawmakers remain skeptical, however. Assemblymember Pat Burke questioned whether the reported job figures have been fully verified. State Sen. Patricia Fahy has also continued to sponsor legislation that would revoke Tesla’s company-owned dealership licenses in New York. John Kaehny of Reinvent Albany has argued that the project has not delivered the manufacturing impact originally promised as well.
Knight, for her part, maintained that Empire State Development has been making the best of a difficult situation.
“(Empire State Development) has tried to make the best of a very difficult situation. There hasn’t been another use that has come forward that would replace this one, and so to the extent that we’re in this place, the fact that 2,000 families at (Giga New York) are being supported through the activity of this employer. It’s the best that we can have happen,” the CEO noted.
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