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While Tesla’s electric vehicles grab headlines, Tesla Energy is growing rapidly and may eventually outperform its automotive division in profit margins. Focused on solar energy generation and battery storage systems (Powerwall, Megapack), Tesla Energy underpins Elon Musk’s vision of a fully sustainable energy economy.
Performance highlights:
- Tesla deployed 15.7 GWh of energy storage systems globally in 2023, a 62% year-over-year increase.
- Gigafactory expansions: Lathrop (California) Megapack plant now produces 10,000 Megapacks annually.
- Solar Roof and traditional panel installations grew 13% year-over-year.
Challenges:
- Solar Roof deployment delays and customer service issues have plagued growth.
- Battery materials (e.g., lithium) sourcing raises concerns about ethical mining practices.
Strategic insight:
If Tesla Energy scales successfully, it could transition Tesla from a car company to a full-spectrum sustainable energy company — a strategic move few competitors (even Ford or GM) are positioned to match.
Sources:
https://ir.tesla.com/press-release/tesla-releases-fourth-quarter-and-full-year-2023-financial-results
https://www.tesla.com/megapack
