Tesla (TSLA.US) has received too much attention in the past few weeks because its market value stands at more than $300 billion. Many people think this price is too absurd for an automaker. However, Tesla’s leadership in battery supply chain, supercharger network, wireless software updates, brand appeal, and artificial intelligence (AI) is recognized. Moreover, Wall Street and even most Tesla followers have not noticed Tesla’s innovation in solar energy.

The bears always say that Tesla bought SolarCity only to save the company’s co-founders, Elon Musk’s cousins ​​Peter Rive and Lyndon Rive. However, Tesla’s solar roof and traditional solar panel businesses have experienced many setbacks, and this can’t be a good refutation of this negative statement of bears. So, is this story over?

Tesla has a master plan, the first part of the plan (released about 14 years ago) is mainly about cars. But it also includes the installation of solar panels from SolarCity (merged into Tesla a few years ago) to make customers more inclined to use new energy. Tesla has accomplished this goal in its initial master plan, but the company does not seem to have a greater advantage over its competitors in the automotive and battery business. Tesla seems to be doing roughly the same thing as others in the industry.

The second part of its plan was released 4 years ago. It plans to create a solar roof with batteries that can run smoothly and beautifully, prior to personal use, and then expand the application to the world.

According to speculation, the third part of its plan is about batteries.

What did Tesla do in the solar field?

Solar-related pushes occupy a major position on Tesla’s official website and any recommended links.

The Tesla homepage clearly shows the guarantee of ordering solar energy: 1. The process is simple, and the order is successful in less than 5 minutes. 2. The company guarantees to provide the best price 3. Money-back guarantee and promise not to reject mail.

Tesla has radically simplified its pricing structure, keeping the cost per watt unchanged.

Tesla introduced a referral reward to encourage Tesla owners to recommend the company’s solar products to their friends and family.

How do other companies sell solar energy?

Most companies use a lot of advertising and even door-to-door sales to convince people to buy solar energy. They get potential customers through advertising, then design a system that meets customer needs, and finally ask sales representatives to promote solar products. It cannot be said that the sales strategy of non-Tesla companies is not good, but it will definitely increase the cost of solar energy.

According to a report updated by the Solar Energy Industry Association (SEIA) on June 11, 2020, “supply chain, overhead and profit margins” account for more than half of the industry’s average installation cost per watt ($2.83).

How did Tesla sell small solar systems so cheaply?

How does Tesla sell small solar systems at the same price as large solar systems? According to microeconomics, the sales, design, and licensing costs of installing solar panels are the same for a small 4 kWh system and a very large 16 kWh system. So, how does Tesla control the fixed costs of this small system?

If you can take the following steps, Tesla can reduce order costs like automakers in the 1980s:

Utilizing Tesla’s brand effect, Elon Musk’s Twitter influence, and recommendations from car owners who are extremely satisfied with Tesla, attract potential consumers to Tesla at a system price of less than $500 Pull on the website. The vast majority of peers spent more than $5,000 in this first step.

The customer’s interest is converted into an order through a friendly website with an order fee of $100. This perfectly balances the customer’s serious buying behavior and the impulsive desire brought by low prices.

Provide high-quality installation. Tesla will encounter some difficulties in the process of increasing solar sales, but as long as it focuses enough on solving the problem, it will be able to overcome the difficulties.

Provide high-quality after-sales service in case of problems. Similarly, Tesla will encounter some difficulties in the process of increasing solar sales, but it will also learn how to deal with problems effectively.

Tesla’s money-back guarantee service is a classic marketing strategy to facilitate transactions, but if there is no high-quality execution cooperation, it will cause: 1. High return cost and loss of sales; 2. If there is no refund, the customer will think that the company has not kept its promise, which will cause the company to lose its reputation.

We all see how Elon Musk is committed to the success of Model 3, and even increasing production and delivery has brought many unexpected challenges. If Tesla is also committed to increasing the number of solar panels installed in the next few years, it may be expected to create another successful case in the solar industry.