Tesla says it has registered a significant increase in energy storage deployment, officially reporting sales of 9.4 GWh of deployed storage products in the second quarter of 2024.
Tesla set a company record by deploying 9.4 GWh of energy storage in the second quarter of 2024, more than doubling the largest deployment in the previous quarter. The value of 9.4 GWh was 131% larger than the previous quarter and 157% larger than the volume deployed in the second quarter of 2023.
The first two quarters of the company’s energy storage deployment in 2024 equals just over 91% of total capacity deployed in 2023 – with the second quarter alone representing nearly 64% of total 2023 deployment capacity.
The announcement was made in an unconventional part of Tesla’s quarter-end press release, which typically focuses on the number of vehicles produced. This quarter’s release highlighted the significant progress the company is making in energy storage, demonstrating its increasing importance to the bottom line.
From 2016 through the first quarter of 2024, Tesla’s energy business consistently contributed less than 10% to total revenue. The only exceptions were in 2017, where contributions peaked at 9.49%, and in the first quarter of 2024 at 9.41%, while in all other periods contributions remained below 7.25%. Based on estimates derived from vehicles sold and the substantial expected increase in energy storage revenues, we expect energy revenues to represent 15% to 21% of Tesla’s total revenues over the coming periods, likely trending toward the upper end of this range.
The capacity expansion follows the start of operations at Tesla’s Megapack assembly plant in Lathrop, California, in 2022. Shanghai, announced in 2023. Each facility can supply up to 40 GWh of Megapacks annually.
Unlike regular vehicle production updates, Tesla does not disclose the volume of energy storage products produced each quarter. Instead, it reports on the revenues of products it can recognize, which coincides with when the battery packs are activated.
The featured image in this article shows the recently activated Sierra Estrella energy storage facility in Arizona.
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In addition to the operational performance, Tesla has relaunched its online energy storage pricing tool, which now offers significantly lower prices.
The company’s price for a 1.9MW/3.9MWh Megapack is currently $1,039,290, which works out to $266/kWh. This price does not include installation or delivery and requires a $1,000 deposit to secure the order.
In April 2023, the price of the same hardware was $1,879,840, at a rate of $482/kWh. The price is down about 44% over the 14-month period.
This price reduction is in line with a general market trend that has occurred Energy storage cell costs in China drop from $110 to $130/kWh to almost $50/kWh.
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