Tesla said to be shutting down some solar facilities

Company will close locations in California and 8 other states

It looks like the sun may be setting, or at least getting dimmer, on Tesla’s SolarCity acquisition.

According to a report from Reuters, Tesla is in the process of closing 13 or 14 of its solar installation facilities in nine states, including California, as part of the company’s recently announced plans to shed 9 percent of its overall workforce. Reuters said it learned of Tesla’s solar-business plans after it received company emails and other documents outlining Tesla’s plans.

In addition to at least one office in California, Tesla said to be planning on closing solar product installation offices in Maryland, New Jersey, Texas, New York, New Hampshire, Connecticut, Arizona and Delaware. A Tesla spokesperson didn’t say how many jobs would be affected by the closures, but that the downsizing in its solar business was part of Tesla’s previously announced job-cut plans.

“The closures are consistent with the operational cost reductions in Tesla’s auto business,” said Tammy Madsen, professor of strategic management at Santa Clara University. “The recent events signal that Tesla is reviewing the cost structure of all of its businesses (and) revisiting the true sources of value creation and value capture is a critical part in managing growing pains.”

When Tesla gave its firstquarter report back in February, the company sales of solar panels “have declined over the last few quarters due in large part to our strategic decision to shutter certain sales channels and market segments. Tesla said it deployed 76 megawatts of solar systems during the quarter, or 62 percent less than what SolarCity was deploying in early 2016.

Tesla acquired SolarCity

for $2.6 billion in November 2016. The deal was

seen as both risky and controversial because of the uncertainty behind Tesla’s plans to fully expand into the solar energy industry while at the same time it was ramping up production plans for its Model 3 sedan, and due to Tesla Chief Executive’s ownership stakes in both companies.

At the time Tesla closed its acquisition of SolarCity, Musk owned about 20 percent of the shares of both companies.