Tesla’s battery storage deployment saw a massive increase in 2024, rising to 31.4 GWh, a sharp rise from 14.7 GWh in 2023. This information was revealed in the company’s earnings presentation. Looking ahead, Tesla anticipates that storage deployments will grow by at least 50% this year.
During a recent analyst conference call, Tesla CEO Elon Musk expressed urgency in boosting the output of stationary battery storage. “We’re trying to ramp output of the stationary battery storage as quickly as possible,” he said.
Furthermore, Tesla reported a significant boost in profitability for its energy generation and storage segment, with gross profit climbing from $1.1 billion in 2023 to $2.6 billion in 2024. Revenue for this segment also surged by 67%, reaching $10.1 billion, up from the previous $6 billion.
The profit margin for this segment rose to 26.2% last year, compared to 18.9% in 2023. This improvement is attributed to cost reductions and benefits from tax credits provided under the Inflation Reduction Act. Revenue from these tax credits jumped to $756 million in 2024, up from $115 million a year earlier.
Musk is optimistic about the future of energy storage. “It is something that enables far greater energy output to the grid than is currently possible,” he noted. He believes the demand for stationary battery packs, particularly larger grid-scale ones, will skyrocket, potentially reaching unlimited levels.
However, despite the optimism, Tesla acknowledged that production of its Powerwall and Megapack products is limited due to supply constraints, which have become evident as the company explores new markets and faces growing demand for energy storage solutions.
In its recent market risk disclosures, Tesla cautioned investors that changes in government rebates, tax credits, and other financial incentives could pose risks to its solar and storage business. The company noted, “These incentives may expire when allocated funding is exhausted or reduced, and this can happen suddenly as the adoption rates for renewable energy increase.”
Tesla’s overall financial performance saw a drop in net income, which fell to $7.1 billion in 2024, down from $15 billion the previous year. When excluding certain one-time items, the income dropped to $8.4 billion from $10.9 billion in 2023. Despite these challenges, the company’s revenue rose slightly to $97.7 billion from $96.8 billion in the prior year.
Analysts from Morgan Stanley commented that Tesla’s fourth-quarter results were “mostly disappointing, but not particularly narrative changing,” highlighting the company’s ongoing transition from being primarily automotive-focused to a more diversified entity with interests in AI and robotics.