Tesla (TSLA) delivered a wild amount of energy storage again last quarter, but its solar business is significantly down.
Yesterday, Tesla released its Q2 2023 financial results.
With the release of its results, Tesla always disclosed the amount of energy storage and solar power it deployed during the last quarter.
The company confirmed that it deployed 66 MW of solar and 3,653 MWh of energy storage in Q2 2023:
The energy storage deployment is down a bit from last quarter, but it is up over 200% from last year.
Tesla wrote about it:
Energy storage deployments increased by 222% YoY in Q2 to 3.7 GWh, another strong quarter due to the ongoing ramp of our first dedicated Megapack factory (Megafactory) in Lathrop, CA. The ramp of this 40 GWh Megafactory – the first of many – has been successful with still more room to reach full capacity. While energy storage deployment rate can be volatile due to project timing, production rate improved further sequentially in Q2.
Andrew Baglino, SVP of Engineering at Tesla, elaborated on Tesla’s energy storage division.
More specifically, the executive said that the last assembly line at the Megafactory is coming online next year to reach full 40 GWh annual production:
Megapack continues to show strong demand globally, with Lathrop ramping successfully to meet our contracted projects in 2023. As stated last quarter, Megapack margins are in a reasonable place in line with our target market — vehicle target margins. The second final assembly line at Lathrop is progressing on schedule, eventually doubling Lathrop capacity ahead of our full factory ramp in 2024.
On the solar side, though, things are not looking as rosy, and Tesla is blaming it on the interest rate:
Solar deployments remained roughly flat sequentially at 66 MW, declining YoY, predominantly due to a high interest rate environment that is causing postponement of solar purchasing industry-wide.
Top comment by mcot222
Residential solar is a very low margin business with lots of labor required and a million different combinations of utility companies and local municipalities to work with. It doesn’t make sense for Tesla to invest a lot more here with the current strategy.
The only strategy that makes sense to me is refining and then building and selling the solar roof tiles and powerwalls to upscale home builders and other trusted roofers and installation companies. I wouldn’t invest more here until that strategy is in place.
Tesla’s solar deployment is down 38% year-over-year, but the company delivered roughly the same amount of solar quarter-to-quarter.
The company doesn’t disclose how much of that solar deployment is from rooftop solar panels or solar roofs.
Lately, Tesla appears to be focusing its energy business more on the electricity retailing side of things with controllable loads side with its Tesla Electric and Charge on Solar products.
If you are looking to install solar on your own home, to find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage. EnergySage is a free service that makes it easy for you to go solar – whether you’re a homeowner or renter. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20 to 30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them. EnergySage can help you compare quotes with solar installers who carry Tesla Powerwalls and even Tesla Solar in some markets.
FTC: We use income earning auto affiliate links. More.
Comments