Tesla's Energy Business

Extracted Attributes

• Type

  Clean energy division

• Customers

  Residential, Commercial, Industrial

• Key Products

  Powerwall, Tesla Solar Roof, Tesla Solar Inverter, Megapack, Solar Panels, Proprietary Software

• Core Business

  Photovoltaic solar energy generation systems, battery energy storage products

• Founding Date

  2015-04-30

• Parent Company

  Tesla, Inc.

• Revenue (2024)

  $10.1 billion

• Megapack Capacity

  3.9 MWh (LFP storage)

• Business Model Goal

  Lowest-cost solar in the United States

• Gross Profit (2022)

  < $300 million

• Gross Profit (2023)

  $1.1 billion

• Gross Profit (2024)

  $2.6 billion

• Estimated 2025 Revenue

  $13.2 billion

• Revenue Growth (2024 YOY)

  67%

• Estimated 2025 Gross Margin

  ~29%

• Solar Energy System Deployment (2023)

  223 MW

• Battery Energy Storage Deployment (2023)

  14.7 GWh

• Battery Energy Storage Deployment (2024)

  31.4 GWh

• Solar Energy System Deployment Decrease (2023 YOY)

  36%

• Battery Energy Storage Deployment Growth (2024 YOY)

  113%

Timeline

• Tesla's Energy Business was founded as a division of Tesla, Inc., and CEO Elon Musk announced the Powerwall home energy storage system. (Source: Wikipedia)

  2015-04-30

• Tesla acquired SolarCity for US$2.6 billion, integrating solar energy generation into Tesla Energy's business. (Source: Wikipedia)

  2016-11

• The energy division's gross profit was less than $300 million. (Source: Nasdaq.com)

  2022

• Deployed 223 megawatts of solar energy systems, a 36% decrease over 2022. Deployed 14.7 gigawatt-hours of battery energy storage products. Generated approximately $6 billion in revenue and achieved $1.1 billion in gross profit. (Source: Wikipedia, Nasdaq.com, christopherchico.substack.com)

  2023

• Deployed 31.4 gigawatt-hours of battery energy storage products, marking a 113% increase over 2023. Generated $10.1 billion in revenue, a 67% increase over 2023, and achieved $2.6 billion in gross profit. (Source: Wikipedia, Nasdaq.com)

  2024

• Energy storage deployments rose 154% year-over-year, reaching 10.4 GWh, indicating continued strong momentum. (Source: christopherchico.substack.com)

  2025-Q1

Tesla Energy

Tesla Energy Operations, Inc. is the clean energy division of Tesla, Inc. that develops, manufactures, sells and installs photovoltaic solar energy generation systems, battery energy storage products and other related products and services to residential, commercial and industrial customers. The division was founded on April 30, 2015, when Tesla CEO Elon Musk announced that the company would apply the battery technology it developed for electric cars to a home energy storage system called the Powerwall. In November 2016, Tesla acquired SolarCity, in a US$2.6 billion deal, and added solar energy generation to Tesla Energy's business. This deal was controversial; at the time of the acquisition, SolarCity was facing liquidity issues. The company's current power generation products include solar panels (manufactured by other companies for Tesla), the Tesla Solar Roof (a solar shingle system), and the Tesla Solar Inverter. The company also makes a large-scale energy storage system called the Megapack. Additionally, Tesla develops software to support its energy products. In 2023, the company deployed solar energy systems capable of generating 223 megawatts (MW), a decrease of 36% over 2022. In 2024, it deployed 31.4 gigawatt-hours (GWh) of battery energy storage products, an increase of 113% over 2023. The division generated $10.1 billion in revenue for the company in 2024, a 67% increase over 2023.

Web Search Results

• Tesla's Energy Storage Business Is Quietly Growing at Triple-Digit ...

  More importantly, Tesla's energy business, including both solar and energy storage sales, is becoming far more profitable. Energy segment gross profit reached $2.6 billion last year -- far more than the $1.1 billion it posted in 2023. For further context, Tesla's energy business generated less than $300 million in gross profit in 2022. The division has gone from a long-term moonshot bet to a viable earnings contributor in just a few years. [...] After years of being viewed as an intriguing side project, Tesla's (NASDAQ: TSLA) energy business is starting to look like the electric-car company's most underappreciated growth engine. In 2024, energy storage deployments surged, and gross profit from the segment hit new highs. And momentum hasn't slowed. Based on Tesla's first-quarter 2025 results, the division is on pace for another record-breaking year. [...] Tesla's energy business delivered stunning results in 2024. Total energy generation and storage revenue jumped 67% year over year to more than $10 billion. After deploying 14.7 gigawatt hours (GWh) of storage in 2023, Tesla more than doubled this figure to 31.4 GWh in 2024. Growth like this doesn't just spotlight demand -- it highlights exceptional product-market fit and suggests there's likely a long runway ahead.

• Tesla Energy - Wikipedia

  Tesla Energy Operations, Inc. is the clean energy division of Tesla, Inc. that develops, manufactures, sells and installs photovoltaic solar energy generation systems, battery energy storage products and other related products and services to residential, commercial and industrial customers. [...] Tesla Energy's business model is based around making their systems "the lowest-cost solar in the United States". As of 2021( the company sells systems at $2 per watt for solar panels before federal tax credits. Tesla says the business model was enabled by eliminating door-to-door sales, advertising, and some complex financing instruments (like leases). The shift in business model has been blamed for diminished customer support. Customers said they waited weeks for replies to emails and [...] The division was founded on April 30, 2015, when Tesla CEO Elon Musk announced that the company would apply the battery technology it developed for electric cars to a home energy storage system called the Powerwall. In November 2016, Tesla acquired SolarCity, in a US$2.6 billion deal, and added solar energy generation to Tesla Energy's business. This deal was controversial; at the time of the acquisition, SolarCity was facing liquidity issues.

• Tesla Energy Is Quietly Becoming the Real Tesla.

  It's quietly becoming the company's future, even if most observers still box Tesla as an automaker. That convenient tag is quickly becoming obsolete. ### Not Just a Battery Box: Tesla’s Second Business Tesla Energy is the division responsible for stationary energy storage and grid-scale solutions. Its flagship, the Megapack, holds 3.9 MWh of LFP storage in a container-sized shell, complete with cooling, electronics, and software. [...] Revenue in Tesla’s energy division surged to $10 billion in 2024, up 67% from about $6 billion the previous year. To provide context for this growth, Tesla's energy revenue has increased by more than 800% since 2017. Contrast this with its automotive segment, which experienced a 6% decline in revenue to $77 billion in 2024. [...] In 2024 alone, Tesla delivered 31.4 GWh of energy storage, a sharp jump of 114% from 2023's 14.7 GWh. The momentum grew, with Q1 2025 deployments rising 154% year-over-year, hitting 10.4 GWh. > “It won’t be long before we’re shipping 100-gigawatt hours a year stationary storage at Tesla, Elon Musk said during TSLA Q3 2024. ### Outgrowing the Car: The Energy Business by the Numbers

• Wolfe takes a closer look at Tesla's energy business - Yahoo Finance

  Investing.com -- Wolfe Research remains bullish on Tesla’s energy business, highlighting recent innovations that could accelerate growth in the coming years. While Tesla’s automotive operations and AI/autonomy ambitions often dominate investor attention, Wolfe Research said its energy segment “has grown rapidly in recent years and is their most profitable segment (est 2025e revs up 31% to $13.2 bn, with ~29% Gross Margin).”

• The Real Reason Tesla Energy Will Take Over in 2025 - YouTube

  Empire for years Tesla's energy business has been treated as an afterthought overshadowed by its cars buried in quarterly reports rarely making headlines a side hustle to the main event but that's no longer possible the numbers coming out of Tesla's latest earnings call don't just suggest that the energy business is growing they show that it's exploding in 2024 Tesla's energy division pulled in $10.09 billion in Revenue a 67% jump year-over-year a few years ago that would have made it a healthy [...] drove the company's success now it's the energy division that's accelerating the company's growth and Tesla isn't just expanding its energy business it's having to race to meet demand that's already here the company is aggressively expanding its infrastructure bringing new factories online and preparing for an energy storage Market that is growing faster than anyone predicted if Tesla can solve its battery supply challenges its energy business could become more important than the one that put [...] it's no longer a rocket ship growth industry the way it was 5 years ago but Tesla energy it's just getting started mega pack production is scaling faster than any vehicle Tesla has ever built the company is doubling down on energy storage infrastructure at exactly the right moment just as the world realizes how critical grid scale batteries will be musk has said I believe Tesla's energy business could eventually surpass our Automotive business and if that happens Tesla won't just be an