Tesla Energy is one of the company’s divisions, and it shows a significant growth of the business with an impressive 62 percent year-over-year. It continues to meet success, despite the factors that may have affected past quarters.
The automaker reported that its energy storage deployments decreased 11 percent year-over-year in the second quarter of 2022, as per InsideEVs.
“The energy storage deployments decreased by 11 percent YoY in Q2 to 1.1 GWh, mainly due to semiconductor challenges, which are having a greater impact on our Energy business than our Automotive business. Demand for our storage products remains in excess of our ability to supply.” says Tesla.
However, in the third quarter, Tesla deployed an increased number of batteries, and will continue to do so in the future.
Megapack and Powerwall – Energy Storage products from Tesla
Tesla achieved third-quarter success with its two core products, Megapack and Powerall. According to the automaker, revenues of Tesla Energy increased 36.8 percent year-over-year to $1.117 billion, whereas the cost of revenues is at $1.013 billion.
In addition, the company states, “the strong result was achieved despite a semiconductor supply problem that continues to have a greater impact on its business.”
Furthermore, Tesla stated to meet the growing demand, and the company is in the process of increasing Megapack production at its 40 GWh Megafactory in Lathrop, California.
According to satellite imagery, the company finished the building’s frame in February 2022. However, in the second quarter earnings report, Tesla announced it was increasing its production there.
Notably, the factory seems to be playing a significant role in increased third-quarter deployment.
“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 our 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.”
Energy storage can reduce high demand and plays a vital role in a sustainable future. As major weather issues can cause a huge problem, storing energy helps people, especially in disasters.
With the increase of people who looks out for the environment and support Tesla Energy, the company may see continuous business growth in the future.