Tesla May Give Up SolarCity’s #1 in Spot in U.S. Residential Solar

When Tesla (NASDAQ: TSLA) spent $2.6 billion on SolarCity in the fall of 2016 it was sold as a marriage of two energy companies that were designed for the future. Under Tesla, EVs and solar panels could be sold together, and SolarCity could more easily incorporate Powerwalls for energy storage along with the financial backing of a much larger company.

In reality, Tesla has shrunk SolarCity to a fraction of its former self. Before long, Tesla may be passed by SunPower (NASDAQ: SPWR), Sunrun (NASDAQ: RUN), and Vivint Solar (NYSE: VSLR) in the distributed solar market (residential and commercial systems). It's hard to give up a lead in solar that quickly, but Tesla is giving up on solar right before our eyes.

Image source: Getty Images.

Source: Fool.com