Tesla Inc. (TSLA  ) has reportedly discontinued its Solar Roof tiles, telling third-party installers that it will supply conventional solar panels instead. The EV giant has told its certified third-party installers that it will stop supplying solar roof tiles, effectively ending the product's availability through its installer network, according to an Electrek report.

One of the sources told the publication that Tesla concluded internally that the Solar Roof product was not financially viable. This decision is evident on Tesla's website, where the Solar Roof page now redirects to the solar panels page, and "Solar Roof" has been removed from the Energy navigation menu.

The company had also stopped including solar roof deployment figures in its quarterly reports starting in early 2024, and the product had largely disappeared from the company's marketing, signifying a retreat that has now been formalized.

Tesla did not immediately respond to Benzinga's request for comments.

Elon Musk unveiled Tesla's solar roof tiles in 2016, shortly before Tesla shareholders approved the company's roughly $2.6 billion acquisition of SolarCity, a debt-laden solar installer led by Musk's cousins, with Musk as its largest shareholder and chairman.

In November 2021, Tesla launched a new version of the Solar Roof with increased power and efficiency. The product, which replaced traditional shingles with mini solar cells, was designed to blend in with the home and provide a refined look.

Arrived lets investors buy shares of cash-flowing single-family homes and earn passive rental income without the hassle of property management.

Tesla marketed the Solar Roof as cheaper than a traditional roof combined with conventional solar panels. However, the solar roof installations often cost far more than initial quotes. In the same year, the company sharply raised prices for some customers even after contracts were signed, leading to a class-action lawsuit that Tesla settled for $6 million in 2023.

Gradually, the company's focus shifted towards more traditional solar panels. In May 2024, Musk announced plans for the company's gigafactory in Texas to be fully covered by solar panels, with the company nameplate outlined in light.

Tesla has shifted toward standard rooftop solar paired with Powerwall, while Elon Musk has emphasized plans for large-scale U.S. solar panel manufacturing rather than Solar Roof tiles.