While Tesla’s automotive production has fallen short of expectations, the company’s energy storage division remains a bright spot in its latest report.
At the start of a brand new quarter, Tesla’s primary focus was on launching production and shipping results for its automotive business; however, by 2024, circumstances had shifted significantly.
By early 2024, Tesla reported a significant decline in car deliveries for the first time in years, prompting the company to prioritize the rollout of its energy storage solutions, which surprisingly exceeded expectations.
Tesla confirmed yesterday that it had successfully deployed 11 gigawatt-hours of energy storage throughout the entire year, following a relentless pace of activity across 2022.
During the fourth quarter, our manufacturing yielded approximately 459,000 vehicles, with deliveries exceeding 495,000 units, while we also set new records by deploying 11.0 gigawatt-hours of energy storage products.
Tesla’s latest quarterly report shows a significant increase in energy storage capacity, with a newly deployed 1.6 GWh system surpassing the 9.4 GWh installed during Q2 2024.
In 2022, Tesla was able to deploy a significant amount of energy storage capacity, with a distinction of approximately 1.6 gigawatt-hours per quarter.
Tesla’s increased deployments stem from the company’s recent significant ramp-up at its Megafactory in Lathrop, California, where it manufactures the Megapack, a large-format energy storage battery pack designed for massive utility-scale projects.
Tesla has accelerated production of its Powerwall, yet discrepancies have emerged in the company’s stated manufacturing capacity for this product.
Following the triumph of its California-based Megafactory, Tesla is poised to replicate that success by establishing a brand-new facility in Shanghai, with production expected to commence this year.
As electric vehicle sales surge, Tesla is seeking to rein in expenses to sustain momentum against intensifying competition in energy storage.
In February, CALT, the leading provider of battery cells to Tesla for many of its products, unveiled its own Megapack rival, which could potentially disrupt the market and challenge Tesla’s dominance.
