Tesla Energy business is doing fine - energy storage hits new records, while solar installations appear to improve.
Tesla's Q4 2019 results show that the energy business blooms. Sales of energy storage systems hit a new high, while solar installations are rebounding.
Tesla Energy revenues in Q4 increased to $436 million (compared to $372 million a year ago), while the cost of revenues stands at $385 million. The difference of $51 million translates to a gross margin of 11.7%.
Last quarter, energy generation and storage accounted for 5.9% of total Tesla revenues.
Tesla energy storage deployed – Q4’2019
Total battery energy storage (Powerwall, Powerpack and the all-new 3 MWh Megapack) deliveries in Q4 increased to an all-time record of 530 MWh (up 136% year-over-year). YTD number is 1,651 MWh (more than in all previous years combined).
530 MWh is equivalent to 5,300 100 kWh packs (compared to 112,095 car sales with various capacity packs).
In Q4, Tesla finally installed its first 3 MWh Megapack and notes strong demand.
In 2020, the energy storage deployment is expected to increase by at least 50% year-over-year, so to at least 2.5 GWh.
"Energy storage deployment reached an all-time high of 530 MWh in Q4, which included the first deployments of Megapack, our new commercial-scale 3 MWh integrated storage system that is preassembled at Gigafactory Nevada as a single unit. Since the introduction of this product, the level of interest and orders from various global project developers and utilities has surpassed our expectations.
In 2019, we deployed 1.65 GWh of energy storage, more than we deployed in all prior years combined."
Tesla solar deployed – Q4’2019
The solar installations decreased by 26% year-over-year to 54 MW, but improved 26% compared to Q3. It seems that Tesla slowly is rebounding from the bottom in Q2 2019.
In 2019, Tesla installed some 173 MW of solar. In 2020, the result is expected to improve by at least 50% (260 MW).
"In Q4, we deployed 54 MW of solar, 26% more than in the prior quarter. Where offered, subscription solar has grown significantly in Q4. With a monthly subscription that can generate income from the first month of usage, there is no reason not to have solar panels installed."
In the case of the long-awaited Solar Roof, as the company sorted out the hurdles, the production at the Gigafactory 2 in New York and installations are finally ramping up. Tesla is hiring "hundreds of employees" to increase production.
"In Q4, we continued to ramp both Solarglass Roof production as well as installations. In addition to Tesla installers, we have also partnered with several roofing companies to support installations to fulfill demand for Solarglass Roof.
After organizing several roofing company training days at our training homes in Fremont, we already demonstrated dramatically shorter installation times versus previous versions of this product. Solarglass tiles are made in our Gigafactory New York, and we are hiring hundreds of employees at this facility."