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Teslas battery energy storage business breaks records: revenue grows 67% and deployments soar 114% year-over-year. As its electric vehicle (EV) business shrinks, Teslas battery energy storage business is shattering its own records in terms of both deployments and revenue. In its fourth quarter and fiscal year 2024 earnings report, Tesla reported revenue of more than $3 billion in the fourth quarter of 2024, representing an increase of 113% over the same quarter in 2023. The companys cumulative revenue of its energy generation and storage business stood at $10.086 billion by the end of 2024, up 67% year-on-year. Tesla announced it deployed 11 GWh of energy storage in the fourth quarter, up 244% from the fourth quarter of 2023. For the year, it deployed a cumulative capacity of 31.4 GWh, up 114% from 2023. It said its energy business achieved record deployments for both Powerwall and Megapack at a combined 11 GWh, resulting in record gross profit in Q4. “Material and other costs continued to decline in Q4 at the Lathrop Megafactory. Both Powerwall and Megapack remain supply constrained as we open new markets and demand for energy storage products continues to grow. Upon completion of construction, the Shanghai Megafactory will begin operations in the first quarter,” the report said. The results reflect the companys predictions that by 2024, the growth rate of deployments and revenue in our Energy Storage business should outpace the Automotive business, as announced in the middle of last year. I predicted for many years that the storage business would grow much faster than the automotive business, Tesla CEO Elon Musk said at the time. And that is what is happening. Looking ahead, Tesla expects its energy storage deployments to grow at least 50% year-over-year by 2025. Meanwhile, the companys automotive business fell 8% in the fourth quarter to $19.8 billion, despite the company reporting a record 495,570 vehicle deliveries between October and December. Total revenue in 2024 reached $77 billion, down 6% year-over-year. For the full year, Tesla said it earned $7.1 billion in net income on $97.7 billion in revenue, a 6% decrease compared with 2023. Tesla shares fell more than 2% in after-hours trading on Wednesday but rose again before the bell on Thursday despite the lower-than-expected results. |
