EV giant Tesla Inc (NASDAQ:TSLA) said on Tuesday that it deployed 9.4 Gigawatt-hours of energy storage products in the second quarter, marking its highest quarterly deployment yet, and a jump of nearly 132% from the first quarter.

What Happened: Tesla started reporting the amount of energy storage products it deployed with its vehicle delivery numbers starting in the first quarter of 2024. Until then, the company reserved reporting on its energy storage segment for its quarterly financial report, rather than the delivery report.

In the first quarter, the company deployed 4.053 GWh of energy storage products. The energy generation and storage segment, Tesla's highest margin business, subsequently reaped revenue of $1.635 billion. At the time, the company also said that it continuing to ramp its 40 GWh Megafactory in Lathrop, California, toward full capacity.

Tesla manufactures its powerful batteries called Megapacks aimed at energy storage at the Lathrop factory. Each megapack unit can store over 3.9 Megawatt-hours of energy or enough to power an average of 3,600 homes for an hour.

While Tesla's automotive segment remains its primary revenue source, the company is actively seeking to bolster revenues from other segments such as energy storage, robotics, and vehicle autonomy.

The company delivered 443,956 vehicles in the second quarter worldwide, marking a 4.8% drop from last year, owing to increased competition and dwindling EV demand in its key markets.

Why It Matters: In January, Tesla expressed expectations for the growth rate of deployment and revenue in the energy storage business in 2024 to surpass that of the automotive sector. Deployments will be volatile and impacted by logistics and global distribution of products, said the company, while adding that it still expects continued growth on a twelve-month basis.

In April, Musk said that the demand for its stationary energy storage products is "super high" and hinted that the company might make more batteries for energy storage than cars in the long term. "I think Tesla might end up doing more total Joules in stationary than mobile long-term," Musk said.

Earlier this month, during Tesla's annual shareholder meeting, Musk also said that the company is on track to complete a "massive number of energy deployments."

"We seem to be tracking to sort of a 200- to 300-percent year-over-year growth in energy storage deployment and stationary pack. So it's giant. And the limiting factor really is being able to build more Megapacks and build more Powerwalls," he said.

In 2023, Tesla's energy segment accrued revenues of $6,035 million, up 54% from 2022.

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Photo courtesy: Tesla