EV giant Tesla Inc. (NASDAQ:TSLA) reported a whopping 100% year-on-year jump in revenue from its energy generation and storage segment in the second quarter, even as revenue from the automotive segment dipped.
What Happened: Tesla on Tuesday reported year-on-year growth of 2% in total revenue for the second quarter to $25.5 billion, despite a 7% drop in revenue from its automotive segment. The fall in revenue from the sale of cars was balanced by the rise in revenue from the company's energy segment which totaled $3 billion.
The company deployed 9.4 GWh of energy storage products in the quarter, marking its highest quarterly deployment to date, and over twice the 4.1 GWh deployed in the first quarter.
Powerwall & @Tesla_Megapack together achieved record storage deployments of 9.4 GWh in Q2 pic.twitter.com/cDO7lS2UP4
— Tesla Energy (@teslaenergy) July 24, 2024
The company is currently ramping up production at its Lathrop Megafactory which is capable of producing 40 GWh of energy storage products a year and also eyeing starting production at its Shanghai Megafactory in the first quarter of 2025.
Tesla's Energy Business Outlook: For the entirety of 2024, the company now expects the growth rate of revenue in its energy business to outpace the automotive business.
The energy storage segment has a strong backlog but deployments will fluctuate from period to period, company CFO Vaibhav Taneja warned during the company's second-quarter earnings call.
As for the automotive segment, Tesla's vehicle volume growth rate is expected to be "notably lower" than the growth rate achieved in 2023, the company said, pinning it down to the focus on launching other products.
Why It Matters: In April, Tesla CEO Elon 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.
During Tesla's annual shareholder meeting in June, 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 billion, up 54% from 2022.