Tesla's Energy Storage Soars: A New Growth Engine Amid Automotive Struggles
Tesla's energy storage business has emerged as a formidable growth engine, recording 46.7 GWh deployments in 2025—a 48-49% year-over-year spike. Megapack and Powerwall thrive amidst automotive challenges, delivering $12.8 billion in revenue with an impressive 29.8% gross margin, nearly double that of their automotive sector. Despite upcoming 2026 margin pressures from competition and policy changes, Tesla's focus on AI-driven projects like the expanding Colossus AI data center and efforts to localize cell production underscore its forward momentum in the energy domain.
Mar 5