Summary
– Tesla Energy business expanded in Q1 2024 to a new record with BESS segment growth
– Tesla BESS sales doubled in 2023 with deployment of 15 gigawatt-hours
– Tesla’s BESS deployment in Q1 2024 increased by 4% year-over-year
– Tesla commissioned a second general assembly line at its Megafactory in California
– Tesla’s solar business continues to fade with decreasing solar deployments in Q1 2024
Article
In the first quarter of 2024, Tesla Energy, the company’s battery energy storage system (BESS) segment, reported significant growth, achieving a new quarterly record. Energy generation and storage revenues increased by 7% year-over-year to $1.635 billion, with the segment being the highest-margin business for Tesla. The company noted a doubling of BESS sales in 2023, deploying almost 15 gigawatt-hours of energy storage systems, driven by products such as the Megapack containers and Powerwalls for homeowners.
Tesla’s BESS deployment in Q1 2024 increased by 4% year-over-year to 4.05 gigawatt-hours, signaling a strong start for the year. Despite this growth, BESS deployment remains smaller in volume compared to Tesla’s electric vehicle battery business. However, the company’s second general assembly line at the Megafactory in Lathrop, California, is now operational, supporting the full capacity target of 40 gigawatt-hours annually. Additionally, Tesla is set to begin construction of a second Megapack factory in Shanghai, China in May 2024.
On the other hand, Tesla’s solar business has been showing signs of decline in recent quarters, with the company no longer reporting solar deployment numbers. This suggests that the solar segment, which includes conventional panels and the Solar Roof, is facing challenges with slim chances of a significant rebound. Tesla has not provided updates on the progress of Solar Roof installations, which are produced at Gigafactory 2 in New York.
In terms of energy storage solutions, Tesla offers three main products: Powerwall 3 for home installations, Powerpack for commercial installations, and Megapack for utility-scale projects. Powerwall installations surpassed 500,000 units globally by mid-2023, with the launch of the third generation product, Powerwall 3. The Megapack is the largest energy storage project for utilities, offering units with 3 megawatt-hours of capacity.
Moving forward, Tesla’s energy business is poised for growth with strong BESS sales expected in the coming quarters. The company’s continued focus on expanding its energy storage solutions, alongside investments in manufacturing facilities, positions it for further success in the energy sector. While challenges persist in the solar segment, Tesla remains committed to innovation and sustainability in its energy products. By capitalizing on its strengths in battery technology and manufacturing expertise, Tesla is well-positioned to drive the transition to renewable energy solutions worldwide.
Read the full article here