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.
A new $415 million Tesla Megapack energy storage facility in Australia has begun commercial operations.
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Tesla released its latest compiled analyst consensus showing significant long-term growth in vehicle deliveries and energy storage.
Tesla reported a record 14.2 GWh of energy storage deployments in the fourth quarter of 2025, up 29% from the previous year, even as its electric vehicle deliveries fell 16%. The company's energy business, including Powerwall and Megapack products, continues to show strong growth and profit margins. CEO Elon Musk highlighted the long-term potential of energy storage and solar integration.
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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.
Tesla has for the first time added its compiled analyst consensus for Q4 2025 to its investor relations website, showing projections of 422,850 vehicle deliveries and 13.4 GWh energy storage. This follows recent analyst predictions of a shortfall versus earlier estimates, enhancing public access to the data.
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Following the recently announced three-year framework agreement with SPIE for Megapack deployments across Europe (see prior coverage), Tesla is advancing its grid storage ambitions. This partnership supports network stability and renewable integration, helping diversify from EVs amid market pressures.
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