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Electric car maker Tesla Inc's move last week to cut 9 per cent 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.
Axar.az reports citing Reuters.
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.
The company said that cuts to its overall energy team - including batteries to store power - were in line with the broader 9 per cent staff cut.
"We continue to expect that Tesla's solar and battery business will be the same size as automotive over the long term," the company said in a statement to Reuters.
The installation offices that the internal email said were targeted for closure were located in California, Maryland, New Jersey, Texas, New York, New Hampshire, Connecticut, Arizona and Delaware.
"It's been a difficult few days - no one can deny this," a Tesla manager wrote in a separate internal email, sent to customer service employees shortly after the cuts were announced.
Analysts questioned Tesla's plans for the solar business in light of the latest cuts to staff and retail operations.
"In effect, they seem to be saying, ‘We have no strategy for selling solar,’" said Frank Gillett, an analyst at Forrester Research, adding that the SolarCity purchase "looks pretty awful right now."
2018.06.22 / 19:23