The Tesla Energy business noted another strong quarter both in terms of volume and profitability, as battery energy storage system (BESS) deployment quickly increases.
According to the company, in Q2, Tesla Energy generation and storage revenues increased by 74 percent year-over-year to $1.509 billion (6.1% of the total revenues), while the cost of revenues stands at $1.231 billion.
Tesla Energy Storage – Q2 2023
Tesla reports that its BESS deployment more than tripled year-over-year to 3,653 megawatt-hours (MWh) or 3.65 gigawatt-hours (GWh). That's a 222 percent increase year-over-year.
So far this year, the volume exceeded 7.5 GWh, which is already more than in the entire 2022.
Total battery energy storage deployment:
- Q2: 3,653 MWh (up 222% year-over-year)
- YTD: 7,542 MWh (up 281% year-over-year)
Tesla says that a crucial role in the expansion is the ongoing ramp of the company's first Megapack factory (Megafactory) in Lathrop, California (announced in 2021), which is promised to reach an annual output of 40 GWh (10 GWh per quarter on average).
"Energy storage deployments increased by 222% YoY in Q2 to 3.7 GWh, another strong quarter due to the ongoing ramp of our first dedicated Megapack factory (Megafactory) in Lathrop, CA. The ramp of this 40 GWh Megafactory – the first of many - has been successful with still more room to reach full capacity. While energy storage deployment rate can be volatile due to project timing, production rate improved further sequentially in Q2."
In the future, there will be more such plants built around the world, including the recently announced one in Shanghai - potentially around 40 GWh/year (assuming around 10,000 Megapack units). The investment is estimated at about $2 billion and should be ready in 2024 (production start in Q2 2024).
Time will tell whether in the future we will also see a third BESS factory (40 GWh/year) in Europe, which would bring the total beyond 100 GWh annually.
Tesla offers three main types of ESS products (all numbers tentative/might change with future product iterations):
- Powerwall for home installations (13.5 kWh usable / 7 kW peak / 5 kW continuous per unit)
- Powerpack for commercial installations (Up to 232 kWh / Up to 130 kW per unit)
- Megapack (3 MWh units the largest project by utilities)
In recent weeks, Tesla Powerwall installations surpassed 500,000 units globally.
Tesla Solar – Q2 2023
In the case of the solar business (conventional panels and Solar Roof), the results are nowhere near BESS.
In Q2, the volume dropped noticeably to 66 megawatts (MW) - 38 percent less than a year ago, dragging into the red also the year-to-date result.
It's hard to expect any significant progress coming in the near term.
"Solar deployments remained roughly flat sequentially at 66 MW, declining YoY, predominantly due to a high interest rate environment that is causing postponement of solar purchasing industry-wide."
Total solar (conventional panels and Solar Roof) deployment:
- Q2: 66 MW (down 38% year-over-year)
- YTD: 133 MW (down 14% year-over-year)
Tesla's solar solutions:
Tesla remains silent in its quarterly report about the Solar Roof installation progress. The Solar Roof is produced at Gigafactory 2 in New York.