Tesla Just Killed Its Solar Roof After Years of Struggling to Scale. What It Means for TSLA Stock.

Tesla has stopped selling its Solar Roof tiles, nearly a decade after announcing the product. The decision comes after many struggles to scale, with estimates suggesting only around 3,000 U.S. installations, far below the original goal of 1,000 installations per week. While solar remains a focus, Tesla appears to be shifting towards simpler, more scalable traditional solar panels, while continuing to expand its energy storage business.

This move could be seen as a strategic realignment, concentrating resources on products with stronger manufacturing economics and growth potential. Despite the setback, Tesla continues to invest heavily in AI, autonomy, and robotics, aiming to become a dominant platform in these technologies. The company's record vehicle deliveries and overall revenue growth underscore its overall strength, though profitability remains a challenge.

Analysts remain cautiously optimistic, with an average price target of $397.60, suggesting potential upside of 14% from the current level.