Tesla will not renew its agreement with Home Depot to sell solar panels and battery packs at the retailer's stores, Tesla CEO Elon Musk said on Tuesday.

Musk said most Tesla employees who had worked at the company's Home Depot displays will be allowed to work at Tesla's stores.

In February, Tesla announced that it would begin selling its solar panels and home battery packs at over 800 Home Depot stores.

The company will now focus on selling its energy products in its stores and on its website.



Tesla will not renew its agreement with Home Depot to sell solar panels and battery packs at the retailer's stores, Tesla CEO Elon Musk said on Tuesday. Musk said most Tesla employees who had worked at the company's Home Depot displays will be allowed to work at Tesla's stores.

The company will now focus on selling its energy products in its stores and on its website, Musk said.

The announcement came in an email Musk sent to employees about a series of layoffs Tesla began this week. The layoffs will affect around 9% of the company's employees.

Musk posted the email on Twitter after the email leaked to media outlets.

"In addition to this company-wide restructuring, we've decided not to renew our residential sales agreement with Home Depot in order to focus our efforts on selling solar power in Tesla stores and online. The majority of Tesla employees working at Home Depot will be offered the opportunity to move over to Tesla retail locations," Musk said.

In February, Tesla announced that it would begin selling its solar panels and Powerwall battery packs at over 800 Home Depot stores.

Tesla bought the solar panel company SolarCity in 2016 and rolled it into its energy business. Tesla now makes and installs solar panels and battery packs for homes, businesses, and government utilities. Tesla also offers solar roof tiles, which are designed to resemble traditional roof tiles, for residential customers.

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