1. Tesla’s energy generation and storage segment saw a 4% year-on-year increase in Q1 2023, with 3,889MWh deployed.
2. The company’s gross profit for the energy segment was up 140%, despite a decline in solar deployments.
3. Tesla plans to ramp up its Megapack production capacity to 40GWh by the end of the year and start construction on a Megapack factory in Shanghai, China.
In Q1 2023, Tesla reported a 4% year-on-year increase in energy storage deployments, totaling 3,889MWh. The company’s storage deployments exceeded 3GWh in each quarter of the previous year, reaching a total of 14.7GWh for the full year. Despite a decline in solar deployments, Tesla saw a 140% increase in gross profit for the segment.
Energy generation and storage remained Tesla’s highest-margin business line, providing a bright spot in a challenging quarter for its EV business. In Q1, energy generation and storage revenue was over US$1.6 billion, while automotive revenues fell 13% to US$17.4 billion. Total revenues for the quarter, including services and other income, fell 9%.
Tesla’s CEO, Elon Musk, expressed confidence in the company’s continued growth in the energy sector, particularly with Megapack deployments reaching an all-time high in Q1. Tesla plans to ramp up Megapack production at its factory in California, with a goal of reaching 40GWh capacity by the end of the year.
Despite global challenges in the EV market, Tesla remains committed to advancing its electric vehicle technology. The company believes that EVs will ultimately dominate the market, as evidenced by its focus on ramping up production of its ‘affordable’ Model 3 EV and expanding its Megapack deployment. In Q3 2023, Tesla was ranked third globally for installed energy storage projects by S&P Global.