Tesla’s energy generation and storage business is experiencing significant growth, with record energy storage deployments of 14.2 GWh in Q4 2025 and 46.7 GWh for the year, reflecting a 49% increase year-over-year. This segment generated $12.7 billion in revenue, accounting for 13% of Tesla’s total revenues, and achieved a gross profit of $1.1 billion in Q4, marking the fifth consecutive record quarter.
As the demand for energy storage rises, Tesla anticipates further deployment growth driven by new products like Megapack 3 and Megablock, with production starting at Megafactory Houston this year. The global Powerwall network has already facilitated over 89,000 virtual power plant events, aiding homeowners in saving over $1 billion on electricity costs in 2025.
In parallel, legacy automakers General Motors and Ford are expanding their focus on energy storage solutions, with Ford investing $2 billion for energy business growth and GM reporting a fivefold increase in GM Energy sales since January 2025. These strategic moves come as EV demand fluctuates, prompting both companies to explore new revenue streams through energy storage.
