Tesla’s Energy Storage Breaks Records as Vehicle Deliveries Decline in 2024

Strong Growth in Energy Storage Amid Vehicle Delivery Drop

In 2024, Tesla Inc. TSLA experienced a notable decline in vehicle deliveries for the first time, even as its energy storage deployments soared to record levels.

Key Developments: On Thursday, Tesla announced that it deployed 31.4 GWh of energy storage products in 2024, showing a remarkable increase from 14.7 GWh in 2023. This represents a growth rate of 114% year over year.

Tesla’s energy storage efforts have consistently increased over the past five years. Back in 2019, the company managed to deploy only 1.7 GWh of energy storage.

Alongside this record in energy storage, Tesla revealed a decline in vehicle deliveries. The company reported delivering 1,789,226 vehicles in 2024, which is a decrease of 1.1% from the previous year’s figure of 1,808,581.

Understanding the Impact: Tesla produces two primary energy storage products: the Powerwall and the Megapack. The Powerwall serves as a compact home battery, storing energy from solar panels or the electrical grid. Each Megapack unit has the capacity to store over 3.9 MWh of energy.

The company operates a Megafactory in Lathrop, California, with a production capability of 10,000 Megapack units annually. Additionally, Tesla is constructing another Megafactory in Shanghai, which is expected to begin shipping Megapacks in the first quarter of 2025, with trial production already underway.

For the three months ending in September, Tesla’s revenue from energy generation and storage reached $2.38 billion. This marked a 52% rise compared to the same timeframe last year, constituting 9.4% of Tesla’s total revenue during this period.

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