Electric vehicle giant Tesla has just published its quarterly update for the first quarter of 2023. The automaker delivered good news for its energy storage deployment, announcing that it hit an enormous year-on-year growth of 360% in Q1 2023.
Notably, this major increase in Tesla’s energy storage installations is substantially boosted by the new Californian Megafactory that manufactures many Megapacks. Nonetheless, it must be noted that Powerwalls also contributed to this result, even if it is not as much as the Megapacks.
Tesla Energy 3.9 GWh in Q1 2023
As mentioned, Tesla reported a YoY growth of 360% in its energy storage deployments, recording a new high of 3.9 GWh capacity. The automaker claims this achievement is mainly due to the production ramp-up at its new 40 GWh Megapack factory in Lathrop, California.
“Energy storage deployments increased by 360% YoY in Q1 to 3.9 GWh, the highest level of deployments we have achieved due to ongoing Megafactory ramp. The ramp of our 40 GWh Megapack factory in Lathrop, California has been successful with still more room to reach full capacity.”
Tesla
Tesla CEO Musk reiterated that the factory is still far from achieving the annual production rate of 40 GWh during the company’s conference call after the press release.
Tesla to build more Megafactories in the following years
It is worth noting that Tesla has announced plans to build another Megafactory in Shanghai on April 10. It aims to have an annual production rate of about 10,000 Megapacks once fully operational.
However, the automaker has no plans to stop there. Tesla indicated in the shareholder letter its plans to build “many” Megapack factories in the years to come.
“This Megapack factory will be the first of many. We recently announced our second 40 GWh Megafactory, this time in Shanghai, with construction starting later this year.”
Tesla
As we all know, Tesla aims to lead the shift to a sustainable energy economy not only through transportation but also through other sectors, including energy storage. That said, this significant increase in Tesla’s battery business is critical for the automaker to achieve its goal. It also demonstrates how fast Tesla Energy is growing.
CEO Musk even predicted Tesla Energy to match or even surpass its EV business’ growth with the production ramp-up in its Californian Megafactory and the planned Megafactory in China.
See Also:
- Tesla’s energy storage business expands 62% to 6.5 GWh in 2022
- Tesla updates Mobile app with the same EV Energy app
- Tesla Megapacks aid Panasonic’s project to generate renewable energy production
- Europe’s largest battery energy storage project was launched using Tesla Megapack
- A new solar energy project may aid Tesla’s power generation issues in its proposed Mexican plant
Remarkably, Tesla Energy is gradually becoming a bigger contributor to Tesla’s overall business. In fact, it enjoyed a whopping $1.5 billion in revenue last quarter.
You can watch Tesla’s Q1 2023 Conference Call below:
