Tesla discontinued its Solar Roof product and removed it from the company website. The move follows years of production failing to meet targets set during its 2016 unveiling. Tesla now directs customers toward conventional solar panels.
Energy business gross margins plummeted to 20.4% last quarter. This represents a significant drop from the 39.5% margin recorded in the previous period. The company also reported a negative free cash flow of $1.1 billion in the second quarter.
Wall Street remains divided on the strategy. Some analysts view the cut as a necessary shift toward scalable energy storage. Others cite the decision as evidence of execution risk following declining margins and cash flow.