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Tesla to end Home Depot partnership as it closes 12 solar facilities: report

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Tesla is closing around a dozen of its solar facilities across nine states in the United States. The closures of the solar sites are reportedly part of the company’s ongoing restructuring, which is set to lay off 9% of Tesla’s workforce.

According to Reuters, the information comes from three internal company documents and statements from seven present and former Tesla employees. The documents accessed by the publication state that the latest cuts to the division come from a part of the company that was once SolarCity. Tesla’s partnership with Home Depot to push sales of its solar solutions and Powerwall 2 home batteries is set to be discontinued as well. According to Home Depot spokesman Stephen Holmes, its partnership with Tesla would last through the end of 2018, after which it would continue a partnership with competitor Sunrun in a number of its stores. 

An internal company list reviewed by Reuters added that after the closures of the solar facilities, about 60 solar installation sites would remain open. The facilities that will be closed are reportedly located in California, Texas, Maryland, New York, New Jersey, Connecticut, New Hampshire, Delaware, and Arizona. Solar customer service staff at call centers in Utah and Nevada have also been reportedly laid off by the company.

A Tesla Powerwall 2 displayed in a Home Depot outlet. [Credit: Xixu/Twitter]

With the Home Depot partnership terminated, Tesla will now push its solar solutions through its own stores. Personnel from the facilities that are set to be closed are being transferred to other sites as well. In a statement to Reuters, Tesla noted that the company still expects to grow its solar and battery business over time.

“We continue to expect that Tesla’s solar and battery business will be the same size as automotive over the long term. Tesla stores have some of the highest foot traffic of any retail space in the country,” the company said.

While stopping its partnership with Home Depot might come off as alarming, GTM Research analyst Austin Perea noted that the deal might have been discontinued as a means to reduce unnecessary expenses. While the Home Depot partnership accounted for a significant number of solar and energy sales for Tesla, third-party retail partnerships are among the most expensive means of generating sales in the solar industry. According to Perea, the cost of winning a customer through Home Depot could cost up to $7,000 per system, roughly 45% more compared to the national average of $4,000 per installation.

Tesla’s energy business is steadily growing, however. Last month, CTO JB Straubel noted in a statement to Fast Company that Tesla had installed 1 GWh worth of energy storage to date, an impressive figure that was reiterated by Elon Musk during the company’s 2018 Annual Shareholder Meeting. During the investors’ event, Musk noted that Tesla would be doing another 1 GWh project less than a year from now, with more growth set to happen within the next few years. As could be seen in Tesla’s 10-Q form for Q1 2018, the company’s energy and storage revenue increased 92% in the three months ended March 31, 2008 year-on-year, primarily due to the earnings of the 129 MWh Powerpack farm in South Australia, which generated $72.5 million on its own.

Tesla continues to deploy its energy solutions to several projects across the globe. Currently, Tesla is involved in roughly 11,000 projects in Puerto Rico, where it continues to help communities damaged by Hurricane Maria get back on their feet. Tesla is also starting on the beginnings of a virtual power plant in South Australia involving 50,000 residential homes fitted with Powerwall 2 home batteries and residential solar. 

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Energy

Tesla launches Powerwall Lease for affordable home backup

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Credit: Tesla

Tesla Energy has introduced the Powerwall Lease in conjunction with Tesla Electric, making the service available in Texas. This new option delivers whole-home backup power using two Powerwall units for a net monthly cost of $35 after credits, accompanied by a low fixed electricity rate.

Under the lease terms, customers pay a one-time order fee of $100. The base lease payment for the two Powerwalls is approximately $122 per month during the first year, subject to a 3 percent annual escalator thereafter. Enrollment in a qualifying Tesla Electric Backup plan or Virtual Power Plant plan provides an $87 monthly credit.

This credit lowers the effective cost to roughly $35 per month plus applicable tax.

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Installation of the standard system carries no additional charge. The package features Storm Watch for outage protection and allows complete management through a single Tesla application. The system supplies continuous whole-home backup capability.

The Powerwall system enables households to maintain electricity during severe storms that disrupt the utility grid. When outages occur, the batteries automatically provide seamless backup power to the home.

Tesla announces 100k Powerwalls are participating in Virtual Power Plants

Tesla Storm Watch monitors weather forecasts and ensures the units are fully charged ahead of anticipated severe weather events so that power remains available throughout the disruption, keeping lights, refrigeration, and other essential systems operating without interruption.

Availability is restricted to select Texas locations where retail electric choice exists. Participants must lease exactly two Powerwall units and maintain continuous enrollment with Tesla Electric. Solar panels cannot be included under this particular lease arrangement.

The monthly credit activates automatically once the system is installed, receives permission to operate, and enrollment is confirmed. To retain the credit, customers are required to stay enrolled in Tesla Electric and fulfill all program conditions.

Nonstandard installations that involve electrical upgrades or special permitting may lead to extra expenses and might impact eligibility for the credit, so be sure to check with either your installer or Tesla to ensure you will still qualify.

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Inside Tesla’s secretive $10 Billion “Project Crystal Sun” filing

Tesla filed for a $10.1 billion Fort Bend solar factory, but the site isn’t confirmed.

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Tesla has filed paperwork in Texas for a second massive manufacturing project in the same week it locked down its chip fabrication site, this time for a $10.1 billion solar cell plant in Fort Bend County. The filing, submitted July 22 under the state’s Jobs, Energy, Technology and Innovation Act and first surfaced by Sawyer Merritt on X, lists an internal project name of “Project Crystal Sun” and targets a site off FM 762 and FM 1994 near Richmond, about 40 minutes outside Houston.

The application, prepared by Kroll Tax Services on Tesla’s behalf, spans five parcels totaling roughly 3,000 acres within the Lamar Consolidated Independent School District. Tesla wants a 10 year property tax limitation in exchange for the investment, split as $1.5 billion in real property and $8.6 billion in equipment and personal property. The company projects 9,712 permanent jobs once the plant reaches full operation, with 1,147 peak construction jobs during a build window running from this year through 2028 and commercial operations targeted for the first quarter of 2029.

Tesla is not fully committed to Fort Bend County yet. The filing states the company is weighing the site against an unnamed out of state alternative, and frames the tax abatement as what would make Texas competitive against that option. If the district and county decline the incentive, Tesla says it may build elsewhere.

Tesla Megapack Megafactory in Texas advances with major property sale

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The plant would handle the full solar cell production chain in one facility, according to the filing, covering wafer and ingot manufacturing, coating, metallization and printing lines, cell testing, automated material handling and cleanroom infrastructure. That scope points to Tesla vertically integrating a part of its supply chain it currently sources largely from overseas partners, mirroring the approach behind its expanding Megapack production in Brookshire, Texas, where Tesla has already built out two buildings for its grid battery business.

The timing lines up closely with Tesla and SpaceX’s other big Texas commitment this month. SpaceX confirmed its Terafab chip factory would land in Grimes County days before this filing surfaced, with construction on that $16.8 billion project starting almost immediately after local officials met with residents. Terafab is meant to produce the AI chips running Tesla’s Optimus robots and Full Self-Driving software, while a solar cell plant would feed a different part of the business, the panels and storage systems Tesla sells to homeowners, businesses and utilities, and increasingly needs to power its own data centers.

Musk has talked about building domestic solar manufacturing capacity before, tying it to the amount of power Tesla’s AI ambitions will require.

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Tesla just trademarked MEGAPOD: here’s what it is

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tesla showroom
(Credit: Tesla)

Tesla just trademarked ‘MEGAPOD’ with the United States Patent and Trademark Office (USPTO), its latest move in what seems to be a hint that the company is incredibly focused on its AI efforts and storage needs as compute increases.

The application carries serial number 99893717 and lists the applicant as Tesla, Inc., located at 1 Tesla Road, Austin, Texas 78725.

The filing remains in ‘live pending’ status, and it is a new application waiting for assignment to an examining attorney. It has not yet been published or registered.

According to the official goods and services description in the application, Tesla describes ‘MEGAPOD’ as:

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“Modular data center hardware systems for artificial intelligence computing, comprised of computer servers, computer hardware for artificial intelligence processing, computer networking hardware, electrical power distribution units, and cooling systems, sold as a unit; self-contained modular computing hardware systems for artificial intelligence workloads; integrated computer hardware platforms for artificial intelligence computing, namely, enclosures containing computer hardware, power distribution hardware, and cooling hardware, sold as a unit; downloadable software for monitoring, managing, optimizing, and regulating modular artificial intelligence computing hardware systems.”

This description specifies complete, self-contained modular units that integrate servers and specialized AI processing hardware with networking components, power distribution, and cooling systems. It also includes associated downloadable software for oversight and optimization of these systems. The language emphasizes hardware sold “as a unit” and enclosures that combine the necessary elements for AI computing workloads.

Tesla has an established history of developing and commercializing modular hardware systems. Its Megapack product line, for example, consists of utility-scale battery energy storage systems designed as containerized units for grid applications. The MEGAPOD filing follows a similar pattern of protecting a name for modular, integrated hardware platforms, this time focused on artificial intelligence computing infrastructure.

This could be an early move, especially as Tesla did not have trademark rights to the word ‘Cybercab,’ the name of its self-driving, ride-hailing-focused vehicle.

Trademark applications of this type allow companies to secure priority rights to a name for defined categories of goods and services. The USPTO examines applications for compliance with legal requirements, including distinctiveness and absence of conflicts with prior marks. If the application proceeds successfully through examination, publication, and any opposition period, it could result in a federal trademark registration providing nationwide protection. This is what Tesla’s obvious intention is with ‘MEGAPOD.’

Public reports and analysis suggest MEGAPOD could represent modular, container-style AI computing pods designed for easy deployment. These would bundle servers, AI accelerators, power systems, and cooling into self-contained units suitable for distributed AI workloads. This approach aligns with Tesla’s announced AI compute strategy.

In March 2026, Elon Musk outlined plans for “Digital Optimus” (also referred to as Macrohard), a joint Tesla-xAI project for AI agents capable of handling complex digital tasks. The plans include running these agents on Tesla’s AI4 hardware in parked vehicles as well as dedicated compute units installed at Supercharger stations, which collectively offer substantial unused electrical capacity.

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What is Digital Optimus? The new Tesla and xAI project explained

A modular hardware platform like the one described in the ‘MEGAPOD’ filing would support scalable, rapid deployment of such distributed compute resources. It could complement Tesla’s other AI infrastructure efforts, including the Dojo supercomputer used for training models and the development of AI systems for autonomous driving and robotics, by enabling edge or regional AI inference without reliance on traditional centralized data centers.

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