Energy Storage
Tesla's Record 2025 Energy Storage Deployments Offset First Annual Revenue Decline
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Tesla reported its first annual revenue decline in 2025, down 3% to $94.8 billion amid EV weakness, but its energy storage business hit a record 46.7 GWh deployments, driving 26.6% revenue growth to $12.8 billion with 29.8% margins. The segment's success highlighted a strategic pivot to AI, robotics, and energy, though 2026 faces margin pressures from competition and policy shifts. Shares rose 3% after hours.
Tesla's Shanghai Megafactory has achieved a significant milestone by producing over 2,000 Megapack energy storage systems in its first full year of operation. The facility, which began production in early 2025, doubled its output in the final five months of the year. This ramp-up underscores Tesla Energy's expanding role in global energy storage.
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Tesla is scheduled to report Q4 2025 results on January 28, 2026, after market close, with a conference call at 5:30 p.m. ET. Amid a second year of falling vehicle deliveries, analysts expect $24.8 billion in revenue (slight YoY decline) and $0.45 EPS (down 40%), buoyed by record energy storage deployments. Focus shifts to AI initiatives like Robotaxi, Optimus, and Full Self-Driving amid EV headwinds.
Following the initial announcement of its Colossus 2 supercomputer, xAI has shared a photo of approximately 420 Tesla Megapacks—valued at $400 million—installed at the Memphis facility, marking the world's largest energy storage system.
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Tesla has informed Cybertruck owners that the Powershare with Powerwall feature, which integrates the vehicle's battery as an extended home backup, will not arrive until mid-2026. The delay stems from technical complexities in ensuring compatibility across various Powerwall configurations. Owners, many of whom paid extra for the promised capability, have voiced disappointment over the repeated postponements.
Tesla reported record energy storage deployments and overall revenue of $28.1 billion in its third-quarter 2025 earnings on October 22, though operating margins fell sharply. The automotive segment faced challenges from low margins and upcoming tax credit expirations, while the energy business showed strong growth. These results come just before a shareholder vote on CEO Elon Musk's proposed $1 trillion compensation package.
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Researchers from Japan's RIKEN Center for Quantum Computing and China's Huazhong University of Science and Technology have developed a theoretical model for a topological quantum battery. This design leverages photonic waveguides to enable efficient energy transfer over long distances without dissipation. The findings suggest potential advancements in nanoscale energy storage and quantum devices.
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