Tesla Expects 50% Surge In Energy Storage Deployments For 2025 After Segment Revenue Doubles In Q4

EV giant Tesla Inc. TSLA reported a 113% rise in revenue from its energy generation and storage segment for the fourth quarter despite an 8% dip in automotive revenues.

What Happened: Tesla reported revenue of over $3 billion from its energy segment or more than double the $1.44 billion reported in the corresponding quarter of 2023, upon deploying a record 11.0 GWh of energy storage products in the quarter.

Automotive revenue, however, dipped 8% to $19.8 billion despite the company reporting a record 495,570 vehicle deliveries in the three months. This is likely because the company relied on cheap financing and discounts to surge deliveries in the period.

Revenue from the energy segment accounted for about 12% of the company’s total revenue in the quarter, while the automotive segment accounted for 77%. The company reported quarterly total revenue of $25.71 billion, missing a street consensus estimate of $27.26 billion.

Why It Matters: Tesla continues to be hopeful for its energy segment for it said on Wednesday that it expects energy storage deployment to grow at least 50% year-over-year in 2025.

Tesla currently operates a Megafactory in Lathrop, California, capable of producing 10,000 Megapack units per year. The company is also building a Megafactory in Shanghai, which it expects to start shipping Megapacks in the first quarter of 2025. Musk on Wednesday also hinted that the company is looking to build a third factory for energy storage production.

The company manufactures Megapack, a powerful battery, in addition to its home battery, Powerwall. The company is also ramping up production of Powerwall 3, the latest iteration of the product.

However, Tesla noted that both the power wall and megapack continue to be supply-constrained as it opens to new markets.

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