Growth in Tesla Battery business
Tesla earlier announced that its battery storage business which includes the utility-scale Megapack and the household-scale Powerwall, increased by 62% from roughly 1.29 GWh in Q3 2021 to 2.1 GWh in Q3 2022.
“The third quarter of 2022 was another strong quarter with record revenue, operating profit and free cash flow,” Tesla stated.
Tesla’s Q3 2022 earnings report
InsideEVs provided the main details in Tesla’s Q3 2022 earnings report, and these are as follows:
- $ 21.5 billion in revenue
- $ 1.05 profit per share (Non-GAAP)
Going back, Tesla Energy installs solar panels, solar roofs, and stationary energy storage devices, including Megapacks and Powerwall.
Tesla provided the following information regarding the new record in its shareholders’ letter:
“Energy storage deployments increased by 62% YoY in Q3 to 2.1 GWh, by far the highest level we have ever achieved. This level of growth was accomplished despite semiconductor challenges continuing to have a greater impact on our Energy business than out Automotive business. Demand for our storage products remains in excess of our ability to supply. We are in the process of ramping production at our dedicated 40 GWh Megapack factory in Lathrop, California to address the growing demand.”
In hindsight, Tesla has raised the weekly production of Powerwall to 6,500 units. Remarkably, it equates to 87 MWh each week.
Meanwhile, Megapacks contribute significantly more with fewer units because each one has an energy capacity of more than 3 MWh.
It is worth noting that Tesla used to only produce Megapacks at the Gigafactory in Nevada. However, it now expanded the production to Megafactory in California as it scales up output.
On the other hand, Tesla installed 94 MW of solar energy in the third quarter. It has increased by 13% from last year, but it was still down compared to the previous quarter.
CEO Musk stated that a considerable amount of battery storage would be needed to aid the delivery of 24/7 electricity during the transition to wind and solar.
“We actually see the energy storage business growing more like – 150 to 200 percent a year – faster than cars, faster by a lot,” Musk told an online briefing following the announcement of Tesla’s Q3 results.
Tesla has dominated the automotive sector with its innovative electric vehicle offerings. As demonstrated by these most recent results, it has also expanded its business to include battery storage, which has proven successful.