Tesla’s energy division achieved record storage deployments and revenue growth in 2025, even as the company pivoted its broader strategy toward robotics and artificial intelligence. In its fourth-quarter report, Tesla disclosed 14.2 GWh of energy storage deployments, bringing the full-year total to 46.7 GWh. This marked its highest annual figure to date.
Energy generation and storage revenue reached $3.371 billion in Q4, an 18% increase from $2.85 billion a year earlier. For the full year, the segment generated approximately $12.8 billion, up 26.6% compared with 2024. Strong demand for both the residential Powerwall and the utility-scale Megapack contributed to this performance, though the sharper decline in average selling prices for Megapacks tempered revenue growth—increasing deployments by 29% but yielding a 27% revenue rise versus 67% in 2024. Gross margins in the energy business improved to 29.8%, a new quarterly record.
Looking ahead, Tesla anticipates margin compression in 2026 as “low-cost competition, policy uncertainty and tariff impacts” intensify. The company plans to launch Megapack 3 and a 20 MWh Megablock solution to support growing deployments, while maintaining a robust global backlog. To back this expansion, Chief Financial Officer Vaibhav Taneja confirmed a capital expenditure budget exceeding $20 billion for 2026. Investments will span new and existing battery energy storage system (BESS) factories, cell production facilities, an advanced lithium refinery and AI compute infrastructure. Tesla expects to fund these initiatives through cash reserves and revenue from services, including Robotaxi operations.
Tesla is also ramping its domestic cell supply, targeting an initial 7 GWh of annual LFP cell capacity at its Nevada Gigafactory and 30 GWh of lithium refining in Texas—both in early ramp stages. This in-house production is intended to mitigate supply chain risks, lower costs and secure eligibility for forthcoming tax incentives favoring domestic content.
Despite broader shifts toward AI and robotics, Tesla underscored the strategic importance of its energy storage business, which now accounts for 13% of total revenue, up from 10% in 2024.
Source: Energy-Storage.news
