After unveiling four styles of its solar roof tiles in October, Tesla Inc (NASDAQ:TSLA) has confirmed that it is now ready to start production. However, it will begin with two styles; a smooth glass and a textured glass tile. According to Tesla’s CEO Elon Musk, the company has always had clean-energy ambitions, which combine solar power, batteries, and electric cars.
Tesla’s Fremont solar plant in California will be the first point of production before moving to the company’s new factory in Buffalo, New York. Apparently, the company has already begun receiving $1,000 deposits for the solar roof and has confirmed that it will continue taking online orders.
Price of the solar roof is much lower than expected
Musk explains that the use of traditional solar and backup batteries in roofing is less expensive that using a typical roof. Nonetheless, the price of $21.85 per square foot that Tesla is offering for the solar roof is much lower than the $24.50 per square foot the consumers expected. Apparently, Tesla’s cost for active solar tiles, which is at $42 per square foot, is also lower than the $68 per square foot previously estimated by Bloomberg New Energy Finance (BNEF).
But is there demand for a solar roof?
The solar roof is one of the most affordable roofs anyone can buy according to Peter Rive, co-founder of Tesla’s recently acquired SolarCity division. However, it remains to be seen how fast the demand will grow even though Tesla argues that its design conforms to the toughest durability standards anywhere in the U.S.
Nonetheless, Tesla is not the first company to be in the solar panel business given that the market has been growing. The likes of Energy Conversion Devices and MSK have also been experiencing similar anticipation. However, Tesla remains optimistic that it is just a matter of time before more consumers can get convinced about its solar roof. In the meantime, Tesla’s stock closed at $325.22 witnessing an increase of $3.96 or 1.23%.