Tesla Energy Reports Q1 Results: 2,500 Powerwalls and 100 Powerpacks Delivered

2 years ago by Mark Kane 48

Tesla Energy - Powerpack - Utility and Business Energy Storage

Tesla Energy – Powerpack – Utility and Business Energy Storage

Send Tesla 5 Model S Referrals And The Company Sends You A Powerwall

Tesla Model S and Powerwall

Tesla Motors included its energy storage branch sales results into its latest quarterly report.

In total, Tesla Energy delivered over 25 MWh of energy storage in the Q1 of 2016 – to customers on four continents (North America, Asia, Europe and Africa).


25 MWh is 25,000 kWh or nearly 278x 90 kWh


Compared to the 14,810 EVs Tesla sold in the first three months, and even assuming smaller 70/85 kWh packs in the mix, Tesla Energy battery sales stands at just a few percentage points (maybe 2-2.5%) of total battery capacity used.

The 25 MWh of capacity was broken out as follows:

“Tesla Energy posted strong growth in the quarter as well. During Q1, we delivered over 25 MWh of energy storage to customers in four continents. We delivered over 2,500 Powerwalls and nearly 100 Powerpacks in the quarter throughout North America, Asia, Europe and Africa.”

Tesla Powerwall

Tesla Powerwall

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48 responses to "Tesla Energy Reports Q1 Results: 2,500 Powerwalls and 100 Powerpacks Delivered"

  1. Anon says:

    A cheaper, 10 kWh Powerwall makes more sense if you’re wanting to use a combination of Wind and Solar at a single residence…

  2. jmac says:

    Almost exactly one year ago Must tweeted the following:
    ——————————————–

    “In the course of less than a week, we’ve had 38,000 reservations for the Powerwall, 2,500 reservations for the Powerpack. The Powerpack, it should be noted, typically — this is bought by utilities or large industrial companies, for heavy industrial work. Typically, Powerpack, it’s like at least 10 Powerpacks per installation, so if there’s 2,500 reservations, there’s actually 25,000 Powerpacks.

    “Powerwall also, we suspect, is probably an average number of Powerpacks is probably 1½ to 2 per installation. So, you know, so, 30,000 reservations is more like 50,000 or 60,000 actual Powerwalls.
    ——————————————–

    “I mean, there’s like no way that we could possibly satisfy this demand this year. And we’re basically, like, sold out through the middle of next year… in the first week. It’s crazy.

    “We had 2,500 requests from companies that want to distribute or install the Powerwall and Powerpack. We can’t even respond to them. We have to, like, triage our response to those who want to be a distributor. So, it’s like crazy off the hook.”

    What happened to the 38 thousand orders? Or, is this a case of simply being production restrained once again ?

    1. SparkEV says:

      I was wondering the same thing. Sven commented on it few days ago, and I thought if it’s supply constrained. It is a troubling number if it’s due to lack of demand (it seems to be). Then how much of that 400K+ reservations for Tesla 3 will take delivery?

      On the other hand, if Tesla 3 demand is less than 1/10 of reservations like Powerwall, I might have a shot at getting the options I want _and_ take full subsidy. Hey, I can dream, can’t I? I’m going back to sleep to dream about it some more.

    2. Four Electrics says:

      There’s weren’t orders. They were requests for information on Tesla’s website.

      The thing you must understand about Musk is that he is a True Believer, and will do or say almost anything to advance his cause. Usually this means stretching the truth to the absolute limit.

      1. Speculawyer says:

        I would not say ‘true believer’, I would say clever and ambitious businessman. He knew he needed the Gigafactory to build the Model 3. But he also knew that investors would be very reluctant to fund such a massive factory for a company only selling 50,000 high priced luxury sedans per year.

        So they came up with Tesla energy as a second biz that would need lots of batterys and hyped it way up. That worked to get investors comfortable with funding the Gigafactory since it now had several product lines to supply: Model S, Model X, residential Powerwalls, industrial PowerPacks, and future Tesla cars.

        Now Tesla Energy is certainly a real business but it is not the the huge thing that many people thought. And with 400,000 Model 3 orders, it doesn’t need to be. Residential batteries only make sense in a few markets right now. But the market will grow as electricity prices rise and generous net metering arrangements are scaled back. (See Hawaii)

        1. JP DeCaen says:

          That’s a very insightful analysis of the Gigafactory and Tesla. Thank you, Speculawyer.

      2. jmac says:

        Elon exaggerated the numbers on what were just inquiries. Okay, now I get it.

        For the most part, I’m on board with Musk. Elon saw the need for a Super Charger Network right out of the box. For electric cars to really succeed, fast charge was an absolute essential.

        The falcon wing doors, on the other hand, may end up being a very expensive warranty and recall mess. Even ardent Tesla fanboys were raising their eyebrows over Musk’s gull wing doors. Almost everybody that’s tried them has had trouble with them including Mercedes. No one bowls 300 every game.

        Cheaper Giga-factory battery batteries should help the Model III bottom line, as well as the power wall sales. Even if Model 3 reservations are exaggerated, it’s still having a psychological effect on the traditional car companies. When you mention orders for 400,000 plus vehicles, even Ford and GM start licking their chops. It took Toyota several years before they sold their first 500,000 Prius.

        1. Cosmacelf says:

          I agree. The Model X will at best be break even for Tesla. Elon used to boast that X demand ‘could easily’ outstrip S demand, with all its problems, they’ll be lucky to sell as many as Model S.

    3. Speculawyer says:

      They were not orders or reservations. They were just clicks on a website expressing interest. No money involved. I know because I was one of them.

      The whole Tesla energy thing was largely a dog & pony show to help convince investors that building the Gigafactory was not crazy. It worked. Mission accomplished!

      But now that they have 400,000 Model 3 orders, Tesla energy is just a small side show. I’m surprised they shipped that many.

      1. Speculawyer says:

        And those Model 3 reservations required real money, not just a website click expressing interest.

      2. SparkEV says:

        In the comments from insideevs “Tesla Energy Has 100,000 Orders For Battery Energy Storage System”, I saw that you did not think they were orders or reservations. But just google “tesla powerwall orders” and all the links show them as being reservations or orders. Some even go so far as to say “Tesla Powerwall: sold out until mid-2016 due to “crazy off the hook” demand”.

        If they came out and said that the popular media has it wrong and to listen to Speculawyer, I would be more forgiving. But letting it become hyped to that extreme level and going as far as to try to refute wired magazine article loses credibility in the long run.

        That also impacts Tesla 3 claims, not just reservations, but the delivery (I expect late) and features. I wonder if this will result in some people pulling out.

        1. sven says:

          Musk has received “the most fawning media treatment of any public figure since Pravda covered Stalin.” Much like the main stream and green tech media, the fawning analysts at the last conference call didn’t ask Musk any tough questions about the lack of production/demand/sales for Tesla Energy’s storage products, and instead lofted only softball questions at Musk, like they always do.

          Musk put the hype machine in overdrive right before Tesla’s 2015 stock offering, during the August 2015 2nd quarter conference call when he not only updated the reservation number, but also put dollar figures on projected future sales. Musk stated that Tesla had received 100,000 reservations for Powerpacks and Powerwalls, worth $1 billion, and predicted sales could be $40-$50 million for the 4th quarter 2015, $1.6-$1.8 billion for 2016 ($400-$450 million per quarter in 2016), and “a few billion dollars in 2017.”

          According to Forbes:
          “Musk said that Tesla has had 100,000 reservations (these are non-binding orders) for the Powerpacks and Powerwalls, which is worth $1 billion. Those orders could deliver $40 million to $45 million in grid battery sales for the fourth quarter of this year. Sales for the battery business could be ‘ten times that number next year [2016],’ — or presumably $400 million to $450 million in a quarter — said Musk.”

          “Beyond next year [2017 and later], the business could reach ‘a few billion dollars in 2017.’ ‘It’s sort of growing by a half order of magnitude to an order of magnitude per year,’ said Musk.”

          http://fortune.com/2015/08/10/tesla-grid-battery/

          Source for Stalin/Pravda quote (have to give props):
          http://nypost.com/2016/01/08/my-winning-bet-against-electric-cars-theyre-the-wrong-way-to-go-green/

          1. Cosmacelf says:

            So, 1st quarter of sales was about $15M as opposed to Tesla’s estimate of $50M (and that was one quarter late). Hmmm.

            1. sven says:

              That’s one way of looking at it. Another way to look at it is that Tesla had sales of about $15M for 1st quarter 2016, as opposed to Tesla’s estimate of $400-450M in sales for 1st quarter 2016, giving Tesla a sales of shortfall of $385-435M in the 1st quarter.

            2. GSP says:

              That sounds like the normal “Tesla Time” for delivery of $50M per quarter. Elon has repeatedly pointed out that the date for the start of the ramp to significant production and deliveries is hard for Tesla to predict accurately.

              GSP

          2. Pushmi-Pullyu says:

            sven quoted:

            “Musk said that Tesla has had 100,000 reservations (these are non-binding orders)…”

            That is very clearly not a direct quote from Musk; it’s a paraphrase. It’s pretty commonplace for mainstream reporters to get confused on their facts when covering technical issues; we used to discuss the sad state of reporting on STEM (Science, Technical, Engineering, Math) subjects in the popular media, on the now-defunct TheEEStory forum.

            Now, we can rightly castigate Elon for not correcting how the media misinterpreted his remarks, adding to the hype. Clearly Elon encourages what sven accurately describes as fawning coverage. But unless someone can point to anyplace that Elon actually said “orders” for that many PowerWalls and/or PowerPacks, I’m going to assume this was yet another case of wide-eyed, uncritical, “gosh-wow” coverage of a technical subject by the popular press. That’s something that is very commonplace in the field of battery technology.

            1. sven says:

              While Elon might have been vague about whether they were truly reservations/pre-orders, he was very specific when talking about “demand” at the 2015 1st quarter conference call, using no qualifiers like “potential” or “expected.” With regards to demand he said the following:

              “Clearly given the very high demand that we are seeing for Tesla Energy products. . . Because just the sheer volume of demand here is just staggering. We could easily have the entire Gigafactory just do stationary storage.”

              Transcript:
              http://www.thestreet.com/story/13142191/4/tesla-motors-tsla-earnings-report-q1-2015-conference-call-transcript.html

        2. Speculawyer says:

          Was it a little sleazy? Sure. Was it outright fraud? I don’t think so. They just hyped it up a bit . . . ‘puffery’ if you will. They then let the press and analysts run with it. If they had brains, the press & analysts could have figured it out like I did. All the information was there and they did not lie.

          But to build the Model 3, they needed the Gigafactory so they did this to make sure they could get it built. It worked and they started building the Gigafactory. And when they were ready, they launched the Model 3 and got more orders than they possibly can fill.

          And Tesla Energy is a real business that is selling products. It is just as not as big of a business as those stupid analysts thought it would be. But it eventually will be.

          1. sven says:

            Speculawyer said:
            “If they had brains, the press & analysts could have figured it out like I did.”

            The press is all but dead. Social media has killed the old-school newspaper press. Below is a good opinion piece about a NY Times story on how easy it has been for the Obama administration to sell the Iran deal to the US and the world, by misleading and manipulating what’s left of the press through social media.

            http://nypost.com/2016/05/05/playing-the-press-and-the-public-for-chumps-to-sell-the-iran-deal/

            http://www.nytimes.com/2016/05/08/magazine/the-aspiring-novelist-who-became-obamas-foreign-policy-guru.html?_r=0

            Once we had newspapers that had foreign bureaus in world capitals and seasoned reporters with year of life experience who had to find stories/scoops and do investigative journalism. Now newspapers are on life support and had to cut much of their staff and close their foreign bureaus.

            Those seasoned reporters have been replaced by 20-year old kids fresh out of college who report/tweet on foreign and domestic news by reading press releases, following twitter accounts, and scouring the internet for ideas/news-stories someone else has posted. These inexperienced millennials are easily mislead and manipulated by those who they are reporting on.

            1. Speculawyer says:

              Well the press has ALWAYS been weak when it comes to science & engineering stuff. Yeah, the speciality press can do a good job but typical reporter doesn’t know jack about science & engineering so you can tell them some BS and they’ll print it.

            2. Pushmi-Pullyu says:

              sven, you sound like one of the Cold War era war hawks who were always describing nuclear arms treaties with the USSR as “selling out” to the Commies. In hindsight, I think we can very clearly say that all the arms limitations treaties were good for the USA as well as the entire world.

              And the only place there has been noticeable opposition to the deal to limit Iran’s nuclear program is among the GOP in the U.S., plus Iran’s regional rivals in the Mideast, such as Saudi Arabia and Israel.

              The international community is overwhelmingly in support of the deal with Iran, and rightfully so. Contrary to your irrational negative remarks, sven, the Iran deal is on the right side of history. The only alternative is yet another “war of choice” conducted by the U.S., with only feeble support from Saudi Arabia and other oil-rich nations, and with Israel mostly staying out due to political tensions with Arab nations.

              I say, if the Saudis want to blow up Iran, let them do it themselves. Let them use their own blood and treasure, rather than ours, this time. I don’t agree with “The Donald” on much of importance, but I agree that it’s long past time for the USA to demand our allies actually provide substantial support for using our military to protect them.

              1. sven says:

                I offered no opinion on whether the Iran deal will be good or bad for the US and the world. I just commented on how the Obama administration sold the Iran Deal and other policy proposals to the public by manipulating social media, and how the diminished old-school press was no longer a strong check and balance to the policy proposals of the governing party.

                1. Pushmi-Pullyu says:

                  sven wrote:

                  “…how easy it has been for the Obama administration to sell the Iran deal to the US and the world, by misleading and manipulating what’s left of the press…”

                  Sven, don’t write “misleading and manipulating” and then try to tell us “I offered no opinion”. That’s an opinion, and a highly negative one; rather far from either neutral or objective.

                  Don’t pee on my leg and then tell me it’s raining.

                  1. sven says:

                    That’s an opinion on how the Obama administration sold the Iran deal to the public, not an opinion on the merits of the Iran deal itself. You do realize that there is a distinction.

            3. SparkEV says:

              Sven, when people bemoan the “loss” of journalism, I look to “Remember the Maine!” that sparked the Spanish American war. As such, what we perceive as the golden yesteryears might have been a fluke. Journalism is hard, and people will always find easy ways and write about stuff to reinforce their biases. But make no mistake, SparkEV is the best car in the world! 😉

              One could even argue that hasn’t changed at all since many in golden years didn’t have as much bias toward one side or the other, allowing more balanced approach, unlike today’s heavy bias to the left.

              Fortunately in US, this kind of stuff eventually comes out and the companies (or government agencies) will suffer for it, though not sure about government agencies.

              1. sven says:

                Yes, yellow journalism has always existed, but now it’s on steroids. I wouldn’t mind it so much if respectable news sources continued to thrive, and continue to do in-depth reporting and investigative reporting. But with their revenue down dramatically, they’ve been forced to cut staff, cut resources, and close foreign bureaus.

                Chevy spark ev UNOFFICIAL blog (www.sparkev.blogspot.com) is one of the last bastions of journalistic integrity left in this increasingly digital world. 😀

          2. SparkEV says:

            I consider it a fraud if it’s misleading, and my threshold is probaly lower than most. Current definition of MPGe is one example (wrote a blog about it).

            If Tesla didn’t spin Institute for Energy Research’s criticism with a rebuttal in engadget article (I wrongly thought wired), I might be more forgiving. But they went out of their way to rationalize to keep up the hype. As such, my credibility of Tesla went down much with this.

            http://www.engadget.com/2016/01/07/study-a-tesla-powerwall-pays-for-itself-after-nearly-40-years/

            Still, they do make some fine performance EV, I just hope they’ll deliver on Tesla 3 and more.

      3. TomArt says:

        Exactly – you cannot compare $1k reservations to clicks.

    4. RexxSee says:

      Maybe we should understand that this company is still very small compared to the enthusiasm it generate. So they are always (always been since 2013) short of filling the huge demand they create. Musk hits the bull’s eye at each of its new offering.

      1. sven says:

        But is there a huge demand for Powerwalls and Powerpacks?

        The price of the PowerPack turned out to be $800/kWh instead of the projected $250/kWh.

        The 10 kWh Powerpack was cancelled because of lack of demand.

        Tesla has even said that the Powerwall doesn’t make financial sense in most of US and most of the world, unless the region has renewable-energy policies like feed-in tariffs, such as Hawaii, the UK and Australia.

        1. Speculawyer says:

          Who cares? Actually, I think they raised prices on the PP and PW to kill demand.

          They need every cell for their cars!

          1. Pushmi-Pullyu says:

            Sure looks that way.

        2. GSP says:

          The Powerpack is actually $470/kWh on Tesla’s website

    5. jerryd says:

      Jmac, even at the too high price, it needs to be under $200/KWHR retail to be viable, they will sell as many as they can make.
      As for orders they will wait until their turn as other systems cost a lot more.
      I am using lead until the prices come down.
      In the 5-7yr before lead needs replacing lithium will drop to we’ll under $200/kwhr.

  3. andre says:

    but Space X landed yesterday perfectly,after a difficult mission….this is a piece of truth too…..

    1. Speculawyer says:

      Yeah, I’m surprised that wasn’t a bigger story. They landed a second rocket on a boat. They expected failure since it was a higher mission. He’s a rocketstar.

  4. Someone out there says:

    Pretty weak numbers but not surprising considering how expensive they are.

    1. Pushmi-Pullyu says:

      Indeed, and I’m surprised I had to read this far down in the comments until someone made what is the most important point. Were all those potential customers expressing interest in the PowerWall and PowerPack merely clicks on a website, with no “earnest money” put up? Yes.

      But even more important, regarding the great discrepancy between interest expressed and actual purchases, is this: The initial wholesale price cited for the PowerPack was startlingly low, and would have put Tesla Energy’s price per kWh far below that of its competitors for large-scale battery storage such as the PowerPack. But unfortunately, the actual retail price turned out to be very much higher than that early estimate of wholesale cost.

      Was that yet another case of extreme hype by Elon? Or is the actual price a reflection of the fact that Tesla Motors realizes that it’s going to have a hard time meeting the demand for batteries for the Model ≡, considering the sharply accelerated timeline for putting that car into production and ramping it up?

      I think it’s a mistake to assume this was all a dog-and-pony show. There is a real market for stationary power storage, and let’s keep in mind that current PowerPack prices do not reflect the cost of Gigafactory battery cells. Volume production has yet to begin at the GF. We can hope that price will come down, and volume of sales will go up, when the GF is producing in volume. However, a 30% reduction in price will still be very much higher than the initial figure quoted, at least according to what my (sometimes faulty) memory says.

      But my guess is that sales will remain much, much lower than Elon’s initial hype, because Tesla would far rather that every battery it makes goes into a Tesla car rather than into a Tesla PowerWall or PowerPack. With nearly 400,000 reservations for the Model ≡, I seriously doubt Tesla will have many batteries to spare over the next few years. We may have to wait for Gigafactory 2 to start producing before we’ll see much volume of PowerPack sales.

      1. Pushmi-Pullyu says:

        Oops, credit where it’s due: I see sven commented on the large discrepancy between initial estimate of PowerWall pricing, and the actual retail price, in a comment he posted at 1:17 pm. Mea culpa.

      2. jerryd says:

        Pp, Tesla pack price is under $160/kwhr now and dropping.
        The orders were from big solar installer companies who still want them badly.

  5. Alan says:

    Where exactly are the powerwall’s being produced ?

    I’m assuming it’s not the part of the gigafactory that’s been built and now starting to produce the battery cells ?

    1. Alan says:

      Just had a look on Tesla UK and we can’t even purchase them yet, no price, just an option to reserve, therefore, I will assume the are production constrained ATM ?

    2. Pushmi-Pullyu says:

      PowerWalls and PowerPacks are being assembled at the Gigafactory, altho not yet using Gigafactory cells as those are not yet being produced in quantity.

      http://electrek.co/2016/03/19/leaked-tesla-gigafactory-pictures-powerwall-powerpack/

      1. Alan says:

        Thanks PP,

        I had forgotten about that story,

        The fact we can’t even order them or know the price yet ($3k over there in the US) in GBP, one assume they are still production constrained, I think they said they might be on sale here in July ?

    3. Cosmacelf says:

      The reason they got delayed a quarter is that they decided to start production in the gigafactory instead of a smaller facility. Cells are still being produced overseas for now, but pack production is in gigafactory. I think first cells are expected end of this year in gigafactory.

  6. georges says:

    so they shipped the equivalent of 278 Model S’s

    Doesn’t sound like that much.

    What margin did they have? Seems like they were quoting around 650$/kwh for a big one on the retail price. One would think they can make money on that.

  7. Tech01x says:

    Tesla is still gearing up production. They have several large PowerPack engagements this year including the Kaua’i Island Utility Cooperative project which is 52 MWh, or 520 PowerPacks, another 50 MWh deal with AMS for Southern California Edison, and 10 MWh deal with AMS for an office complex in Irvine, CA.