Last November, shareholders approved Tesla’s $2.6 billion SolarCity merger. According to the company’s recently released Q4 and full year 2016 financial results, Tesla is on track to generate $500 million in cash from the SolarCity merger in the next two years.
Tesla has outlined a plan that will enable it to achieve this goal. The first thing it wants to do is to reduce advertising spending. Tesla is known for not spending money on advertising and, therefore, never uses an ad agency. It makes great and innovative products and is able to secure free publicity whenever it announces something new or when Elon Musk tweets about a new development at the company.
The company will also start selling SolarCity products in Tesla retail stores. By doing so, it will cut down on commission costs as a lot of SolarCity packages are sold via door to door knocking. It also makes sense to combine all the Tesla products like electric cars, Powerwall batteries, and solar panels under one roof.
The third step of the plan is to shift away from leasing solar systems. The company wants to reduce the number of leases and increase cash purchases.
Additionally, Tesla also mentioned that production of the solar roof tiles, which look like typical shingles found on most houses, will begin this summer. The company will start selling and installing them by the end of the year.