Tesla Inc. has reported a significant 113% increase in revenue from its energy generation and storage segment for the fourth quarter. This growth was achieved despite an 8% decline in automotive revenues.
Q4 Performance Highlights
- Revenue from the energy segment reached over $3 billion, more than double the $1.44 billion reported in the corresponding quarter of 2023.
- A record 11.0 GWh of energy storage products were deployed in the quarter.
- Automotive revenue dipped 8% to $19.8 billion, despite a record 495,570 vehicle deliveries in the three months.
- The energy segment accounted for about 12% of the company’s total revenue, while the automotive segment accounted for 77%.
- Quarterly total revenue was $25.71 billion, missing the street consensus estimate of $27.26 billion.
Future Prospects
Tesla remains hopeful for its energy segment, expecting energy storage deployment to grow at least 50% year-over-year in 2025. The company currently operates a Megafactory in Lathrop, California, and is building another in Shanghai, which is expected to start shipping Megapacks in the first quarter of 2025. A third factory for energy storage production is also being considered.
Energy Storage Products
Tesla manufactures a range of energy storage products, including:
- Megapack: a powerful battery
- Powerwall: a home battery, with the latest iteration Powerwall 3 currently in production
However, both the Powerwall and Megapack continue to be supply-constrained as the company expands into new markets.
Conclusion
Tesla’s energy segment is expected to drive significant growth in 2025, with a predicted 50% increase in energy storage deployments. The company’s continued investment in energy storage production and expansion into new markets is likely to play a key role in achieving this goal.