Tesla’s Energy business is seeing strong demand, translating into an overall gross profit record in the second quarter of 2022. Leading the way was their solar division, which saw its strongest quarter in over four years.
According to the company’s Q2 2022 financial report, solar deployments increased by 25% year-over-year (YoY) to 106 megawatts (MW) during the period of April to June. This is a noteworthy achievement considering the supply chain issues Tesla encountered.
“Although we continue to experience import delays beyond our control on certain solar components, we have expanded our supplier base to enable growth in this business. Our solar installation team continues to improve installation efficiency, enabling higher volumes and stronger economics.,” Tesla said in the report.
The 106MW is also a more than twofold increase over the first quarter of 2022 where the company deployed 48MW, a quarter which was also impacted by import delays.
The strong performance by solar helped Tesla record a gross profit despite a decline from the energy storage side of the business. According to Tesla energy storage deployments decreased 11% YoY in Q2 to 1.1 gigawatt-hours (GWh).
The decline was attributed to semiconductor supply issues, which Tesla says has affected their energy business more than their automotive business.
With the decline, Tesla is still seeing demand outpace their ability to produce energy storage products, which include Powerwalls, Powerpacks, and Megapacks.
“Demand for our storage products remains in excess of our ability to supply,” Tesla explained.
To help with the supply, Tesla is ramping production at their new Megapack facility in Lathrop, California. The company didn’t provide any metrics on its current production rate at the plant which opened earlier this year, but it will have a production capacity of 40GWh at full utilization.