Tesla’s energy storage business continues to boom

While Tesla’s vehicle delivery results were disappointing, there was still good news in the report: Tesla’s energy storage business continues to boom.

Originally, at the beginning of a new quarter, Tesla would only release production and deliver results for its automotive business, but things changed in 2024.

In Q1 2024, Tesla’s vehicle deliveries were significantly down for the first time in a long time so Tesla decided to also release its energy storage deployment, which looked a lot better.

The company continued to do so throughout the year, and with the release of its Q4 results yesterday, Tesla confirmed that it deployed 11 GWh of energy storage:

In the fourth quarter, we produced approximately 459,000 vehicles, delivered over 495,000 vehicles and deployed 11.0 GWh of energy storage products – a record for both deliveries and deployments.

That’s a new record up 1.6 GWh from Tesla’s last quarter in Q2 2024 when the company deployed 9.4 GWh of energy storage.

A difference of 1.6 GWh is what Tesla used to deploy in an entire quarter back in 2022.

The significant ramp-up in deployment is due to Tesla now having fully ramped up its Megafactory in Lathrop, California, where the company produces the Megapack, its energy storage battery pack for large utility-scale project.

Tesla has also ramped up production of its Powerwall, but we have reported some inconsistencies in Tesla’s claimed Powerwall production capacity.

After the success of Megafactory in California, Tesla now aims to replicate it with a new Megafactory in Shanghai, which is expected to start production this year.

While volumes are increasing, Tesla is having the reduce prices for the demand to keep up as competition for energy storage is also ramping up.

Earlier this year, CATL, which supplies Tesla with battery cells for many of its products, released its own Megapack competitor, which is expected to put pressure on Tesla.