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 and independent energy firm NatPower have agreed to build 25 gigawatt-hours of battery storage using Megapack systems in Italy and Britain.
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Tesla has released a new video showcasing its Megapack factory in Lathrop, California. The company states it is now producing 200 Megapacks per week.
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.
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Akaysha Energy has activated its 205 MW/410 MWh Brendale Battery Energy Storage System in Queensland, Australia, nearly five months ahead of schedule. The facility, powered by Tesla Megapack 2 technology, connects to Brisbane's South Pine substation and supports the region's energy needs ahead of the 2032 Summer Olympics. It provides energy arbitrage, frequency control services, and enhanced grid stability through grid-forming capabilities.
Engineering firm SPIE and Tesla have signed a three-year agreement to expand their collaboration on battery energy storage systems across Europe. The deal covers ongoing projects including a major 1.4 GWh facility in the Netherlands. It aims to streamline deployments using Tesla's Megapack technology without setting volume targets.
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Tesla has launched a new $500 million Megapack battery energy storage system in California. The facility can provide clean energy equivalent to the annual usage of roughly 467,000 homes. It incorporates AI-driven grid management for optimized energy distribution.
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