Tesla Megapack and Powerwall battery storage deployments jumped to 31.4 GWh last year, up from 14.7 GWh in 2023, the company said in an earnings presentation Wednesday. The company expects storage deployments will grow at least 50% this year.
“We're trying to ramp output of the stationary battery storage as quickly as possible,” Tesla CEO Elon Musk said during an analyst conference call.
Gross profit at Tesla’s energy generation and storage segment increased to $2.6 billion in 2024 from $1.1 billion the year before as revenue climbed 67% to $10.1 billion from $6 billion in the same period, according to Tesla.
The segment’s profit margin grew to 26.2% in 2024, up from 18.9% in 2023, driven by cost reductions, including benefits from Inflation Reduction Act tax credits, Tesla said. Revenue from the tax credits soared to $756 million last year from $115 million in 2023.
Musk is bullish on energy storage. “It is something that enables far greater energy output to the grid than is currently possible,” Musk said. “This will drive the demand of stationary battery packs, and especially the grid scale ones, to insane [levels], basically as much demand as we could possibly make.”
However, Tesla said its Powerwall and Megapack production is supply constrained as the company enters new markets and demand for energy storage products continues to grow.
As part of its market risk disclosures, Tesla warned investors that its solar and storage business faces risks from changes in governmental rebates, tax credits and other financial incentives.
“These incentives may expire when the allocated funding is exhausted, reduced or terminated as renewable energy adoption rates increase, sometimes without warning,” Tesla said in a U.S. Securities and Exchange Commission filing on Thursday. “Likewise, in jurisdictions where net metering is currently available, our customers receive bill credits from utilities for energy that their solar energy systems generate and export to the grid in excess of the electric load they use.”
Overall, Tesla’s net income plunged to $7.1 billion in 2024 from $15 billion the year earlier. Not counting certain one-time items, its income fell to $8.4 billion last year from $10.9 billion in 2023.
Tesla’s revenue inched up to $97.7 billion last year from $96.8 billion in 2023.
Tesla’s fourth-quarter results were “mostly disappointing, but not particularly narrative changing,” Morgan Stanley analysts said Thursday. “Tesla's 4Q results are emblematic of a company in the transition from an automotive 'pure play' to a highly diversified play on AI and robotics.”
