Tesla Energy continued its rapid growth in 2023, largely driven by its energy storage business. The company said in its financial report that it expects Tesla Storage’s growth rate of deployment and revenue to exceed its automotive business in 2024.
On Wednesday, Tesla published its financial report for the 4th quarter and 2023 financial year. The company shared a number of positive highlights, including information about its Storage business. According to the figures, energy storage deployments reached an impressive 14.7 GWh in 2023. This is more than double the previous year. Of particular note is the fact that profits from the energy generation and storage business nearly quadrupled in 2023.
Gross profit of Tesla Services & Other business increased from a ~$500M loss in 2019 to a ~$500M profit in 2023.
Tesla noted that energy storage deployments declined sequentially to 3.2 GWh in the fourth quarter. However, total deployment in 2023 was 14.7 GWh, up 125% from 2022. The company expects deployment volumes to be volatile due to the impact of logistics and global project distribution. However, the company expects continued growth over the next 12 months.
Tesla said that in 2024, the growth rate of deployments and revenue in its Energy Storage business should outpace the Automotive business, which is impressive. The manufacturer continues to ramp up production on its 40 GWh Megafactory in Lathrop, California.
Tesla also noted that year-over-year solar deployments fell to 41 MW. The company noted that pressure on solar demand continued into the fourth quarter as interest rates remained high. In addition, profitability in the fourth quarter was negatively impacted by lower deployment volumes and seasonal weakness in solar generation.