Summary
- Tesla Energy reported a record gross margin of 30.5% for Q3 2024
- Despite lower Megapack volumes, Tesla’s energy business reached a record gross margin
- The Lathrop Megafactory produced 200 Megapacks per week with a 40 GWh run rate
- Powerwall deployments reached record levels and the company is ramping up Powerwall 3 distribution
- Elon Musk believes that Tesla Energy will eventually surpass the automotive business and has goals for massive energy storage shipments.
Article
Tesla Energy has exceeded expectations, with the company’s energy division reporting a record gross margin of 30.5% in Q3 2024. Despite lower Megapack volumes, Tesla’s energy business achieved a record gross margin with a sequential increase of 596 bps. In its Q3 2024 Update letter, the company disclosed that its Megafactory in Lathrop was producing 200 Megapacks per week with an annual run rate of 40 GWh. Additionally, Tesla has another Megafactory in China that is set to start Megapack shipments by Q1 2025, beginning with a 20 GWh run rate.
Tesla also shared that its Powerwall deployments reached record levels for the second quarter in a row and is currently ramping up distribution of Powerwall 3. The company has expanded its Powerwall business to other countries this year, partnering with a major electronics company in Japan to grow its Virtual Power Plan (VPP) program. As of Q3 2024, Tesla reported that more than 100,000 Powerwalls are enrolled in VPP programs.
Elon Musk has expressed his belief that Tesla Energy will eventually surpass the company’s automotive business. During the TSLA Q3 2024 earnings call, Musk stated that the energy business is performing extremely well, with enormous opportunities ahead. He predicted that Tesla will soon be shipping 100-gigawatt hours a year in stationary storage and will ultimately grow to multiple terawatt hours per year to contribute to a sustainable energy future. Musk emphasized the necessity of reaching the terawatt scale to make a significant impact on the transition to sustainable energy.
For any inquiries, readers can contact maria@teslarati.com or via X @Writer_0100110. Visit TESLARATI Marketplace for more information on Tesla Energy products and services. Tesla Energy continues to make strides in the energy sector, with impressive growth in both its Megapack and Powerwall divisions. With a strong focus on sustainable energy solutions, Tesla Energy is aligning with Elon Musk’s vision for a more environmentally conscious future and expanding its reach globally.
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