Tesla’s energy storage business is growing faster than any other part of the company

Tesla’s energy storage business has emerged as the fastest-growing segment of the company, significantly offsetting declines in electric vehicle sales and helping Tesla surpass Wall Street’s earnings and revenue expectations. In 2025, Tesla deployed a record 46.7 gigawatt-hours of energy storage products—a 48% increase from the previous year. Large stationary batteries like the Megapack and Powerwall, alongside solar installations, now contribute nearly 25% of Tesla’s gross profit. The storage segment generated $3.8 billion in gross profit last year, with the Megapack alone accounting for $1.1 billion. Revenues from storage and energy generation rose 26.5% to $12.8 billion, boasting a gross margin of 29.8%, which is almost double the margin Tesla earns from vehicle sales. Looking ahead, Tesla anticipates continued growth in energy storage, with $4.96 billion in deferred revenue expected in 2026 from ongoing projects, more than twice the