In Q3 2018 Tesla Deployed 239 MWh Of ESS And 93 MW Of Solar

OCT 26 2018 BY MARK KANE 6

Tesla ESS business is just a fraction of the EV business

Tesla has shaken the world by achieving strong third quarter results with revenues of $6.824 billion and net income of some $255 million.

Most of the revenue comes from sales of 83,775 electric cars (56,065 Model 3 and 27,710 Model S/X).

The energy storage and solar business add just $399 million in revenue, which shows that it’s just less than 6% of the total result.

“In Q3, energy storage deployments grew to 239 MWh, an increase of 18% sequentially and 118% compared to Q3 2017. This means that we are well on track to achieve our goal of tripling energy storage deployments in 2018 compared to 2017. We increased Powerwall production so that we can continue to work through our order backlog. We also rolled out new software features for Powerwall, including Time Based Control and Storm Watch (full Powerwall recharge in case of a storm forecast), to continue to bring additional value to our customers.”

Tesla energy storage deployed – Q3’2018

The 239 MWh of ESS delivered in Q3 is more than two times higher than a year ago, however the amount is not in the same league with battery packs for cars.

Assuming 100 kWh packs, 239 MWh would be good for 2,390 cars or less than 3,000 packs in the case of Model 3. With electric car sales growing quickly, ESS probably will remain side business for quite some time.

This brings us to an important conclusion that we will probably not see many ESS-focused companies around the world. The reason is that for an EV company, with all the competence in battery packs, it’s easy to produce several more percent of packs for ESS, while an ESS-focused company would need to survive only based on the ESS business. And probably this why we see Tesla, Nissan, Renault, Daimler and others interested in ESS, not even touching the topics of use of the second-life batteries.

Tesla solar deployed – Q3’2018

In the case of solar, Tesla is slowly increasing deployment to 93 MW in Q3, although sales are far lower than in the past when the company was mostly leasing or before the acquisition of SolarCity. Overall, the step back was good from a profitability perspective.

Higher results could be achieved in 2019 or 2020, when the Solar Roof will finally gain some traction.

Categories: ESS, Tesla

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6 Comments on "In Q3 2018 Tesla Deployed 239 MWh Of ESS And 93 MW Of Solar"

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Now that they can build the Model 3 in reasonable number they should send Elon and his sleeping bag up to Buffalo to get the roof production moving. It should take him at least a couple weeks. Then he can go launch some rockets, roll out the Model Y, do a couple runs to the dump in the pickup, maybe drive a load of panels in the semi out to Nevada for the Giga factory roof.

Stuck in neutral. @Mark Kane – can you add a cumulative line to the above graphs?

Massively shows the potential of a fleet of vehicles plugged in could have supporting the grid. If the 50000 Tesla M3s sold in Q3 could discharge just 1kwhr at peak grid usage. My back of the eyelid calculation puts that at 50Mwhrs. They would then absorb when demand was low.

Tesla sold only 93MW (rated) PV panels (including minuscule solar tiles qty) in Q3. At a global price tag of 0.33 $ per rated Watt for PV panels, this means approx $30m revenue if sold, or more likely spread over decades if the usual SolarCity lease/installment financing is used. Profit margin most likely negative for PV when competing with low cost China made panels flooding the world.

For this lackluster performing SolarCity acquisition Tesla coughed up 2.6 Billion US$ and has a 1.8 Billion junk bond with 5.3% coupon to pay ($95m yearly interest). A millstone hanging around the neck of Tesla, better the SolarCity Buffalo plant is rededicated and used to produce model-Y and pick-up trucks.

Let them focus on Model-3 ramp up and after it comes to full scale production, then they can move with solar tiles.

Solar tiles is an important technology that can cut the pollution from coal and natgas fired power plants and can also charge the electric vehicles. Solar power generation has made great strides in the last few years and is challenging natgas in power generation.

I consider the solar roof to be part of the 3 legged stool. That will allow consumers to gain some independence from the utilities. I’m glad Tesla is taking it’s time to make sure that the solar roof will meet the test of time. Certainly wouldn’t want a product going on many many roofs before there convinced the product is as good and reliable as can be. I suspect when new homes have to have solar panels in California in 2020 I think that’s the date. Tesla will be installing many solar roofs on new construction homes. If Florida voters beat the utilities Proposition that they’ll be voting on in Florida. Florida can have exponential growth in solar and battery. They just have to remember which party works for the corpoations and which one works for the people.