Tesla’s vitality storage enterprise is booming, and it’s simply starting. Nonetheless, the start of Tesla’s vitality storage progress additionally seems to be the tip of Tesla’s photo voltaic enterprise.
Don’t get fooled by the truth that Tesla’s vitality storage deployment was down sequentially from 9.4 to six.9 GWh.
Sequentially, Tesla’s deployment would possibly look dangerous as a result of it’s engaged on big battery initiatives. If a couple of of them get delayed for causes which are typically out of Tesla’s management, it might’t account for the deployment despite the fact that it might need delivered the Megapacks.
It’s higher to have a look at the year-over-year progress, which was at 75% final quarter.
It’s additionally solely the start of Tesla’s progress in vitality storage deployment. This week, Tesla disclosed that its Lathrop Megafactory is now producing Megapacks at its full deliberate capability of 40 GWh per yr.
Megapack alone may contribute 10 GWh of deployment per quarter. Tesla additionally just lately disclosed Powerwall reaching a manufacturing capability of 700,000 Powerwall per yr, which might contribute over 2 GWh of vitality storage deployment per quarter.
Moreover, Tesla disclosed that its Shanghai Megafactory, which goals to provide Megapacks in China, is on observe to begin its first cargo in Q1 2025.
Tesla disclosed all of this in its Q3 2024 shareholders’ presentation:
The Vitality enterprise achieved a document gross margin of 30.5% in Q3, a sequential improve of 596 bps, regardless of decrease Megapack volumes. Powerwall achieved document deployments in Q3 for the second quarter in a row. Ramp of Powerwall 3 and the Lathrop Megafactory continued efficiently – with Lathrop demonstrating 200 Megapack manufacturing (40 GWh annual run charge) in a single week. As of Q3, over 100,000 Powerwalls had been enrolled in Digital Energy Plant packages, delivering further monetary worth to house owners whereas offering much-needed assist to the grid in periods of stress. The Shanghai Megafactory stays on observe to start delivery Megapacks in Q1 2025.
This was Tesla’s complete ‘Vitality Era and Storage’ part; as you may see, there’s nothing about vitality technology. It’s nearly vitality storage.
Tesla’s “vitality technology” enterprise has been photo voltaic, nevertheless it’s now going away.
Over the previous few years, now we have reported on how Tesla has been phasing out this photo voltaic enterprise. It’s now so small that Tesla doesn’t even trouble reporting its photo voltaic deployment.
The corporate nonetheless deploys photo voltaic inverters and photo voltaic roofs, however nearly completely by means of third-party installers, and it’s clearly changing into not necessary to the corporate.
The phrase ‘photo voltaic’ wasn’t talked about as soon as throughout Tesla’s Q3 2024 convention name.
Tesla’s objective now’s to personal the “mind” behind distributed vitality techniques to allow its digital energy plant merchandise.
Electrek’s Take
At this level, it’s not unimaginable to see Tesla deploy round 60 GWh of vitality storage subsequent yr. That will be really spectacular. Congratulations to everybody concerned.
On the photo voltaic entrance, I believe we have to begin grieving Tesla’s photo voltaic enterprise. It’s disappointing the way it occurred.
For these not conscious, Tesla’s acquired its photo voltaic enterprise by means of the controversial acquisition of SolarCity, which was based by Musk’s cousins and financed by Musk himself.
Many noticed it as a bailout, and Tesla shareholders sued Musk for it, however he defended himself by claiming that despite the fact that photo voltaic deployment has gone down since Tesla acquired SolarCity, it was nonetheless an necessary a part of its enterprise.
As quickly as he received the lawsuit, Tesla began to cease reporting photo voltaic deployment and phased out the enterprise.
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