Tesla Energy storage deployments reached a record level in Q1 2024, according to the company’s reporting. The manufacturer expects the business’ deployment and revenue growth to exceed its automotive business in 2024.
On Tuesday, Tesla released its financial report for the first quarter of 2024. The company shared a number of highlights, including information about its energy storage business. According to the figures, Tesla’s storage deployment reached a record 4.1 GWh last quarter.
According to the report, Energy Generation and Storage revenue and gross profit also achieved an all-time high in Q1. Revenues were up 7% YoY and gross profit was up 140% YoY, driven by increased Megapack deployments, partially offset by a decrease in solar deployments. “Energy Generation and Storage remains our highest margin business,” Tesla said.
During the earnings call, Elon Musk noted that the Tesla team has done an excellent job working in difficult conditions and deploying energy storage. Thanks to the deployment of Megapack, Tesla Energy reached record levels in the first quarter, which led to record profitability for the energy business. He expects this figure to continue to rise and increase sequentially in the coming quarters and years. Musk and his team believe Tesla Energy will grow much faster than the auto business.
Tesla’s Chief Financial Officer, Vaibhav Taneja, added that Tesla Energy’s profitability reached a record 24.6%. He said the company expects energy storage deployments to grow at least 75% in 2024 compared to 2023. This, in turn, will result in this business starting to contribute significantly to the company’s overall profitability.
In the report, Tesla said it had commissioned a second Megapack general assembly line. The company continues to ramp up its 40 GWh Megafactory in Lathrop, California to full capacity.
