Tesla's Energy Business Might Be Its Saving Grace As EV Deliveries Drop

• The company employed only 11 GWh of energy storage in the fourth quarter of 2024, implying a growth of 29% year-on-year and nearly 14% quarter-on-quarter in deployments.
• In the third quarter, the company reported a 44% growth in revenue from its energy segment while automotive revenue growth was a mere 6%.
• The company in September unveiled a new energy storage system called the Megablock, adding to its portfolio of products in the segment including the Megapack and the Powerwall.

EV giant Tesla deployed 14.2 GWh of energy storage products in the fourth quarter, marking a new record, even as its EV delivery business took a plunge.

The company on Friday announced that it delivered 418,227 vehicles in the three months through the end of December, marking a 16% year-on-year decline, and below an analyst estimate of about 422,850 vehicles.

Tesla delivered 1.6 million vehicles for the full year 2025, down from the 1.79 million vehicles sold in 2024, marking its second consecutive year of delivery decline.

Energy Storage Deployment Rises To Meet Dip In EV Sales

However, despite the dip in EV sales, the company’s energy storage business has been soaring. The company employed only 11 GWh of energy storage in the fourth quarter of 2024, implying a growth of 29% year-on-year and nearly 14% quarter-on-quarter in deployments.

While Tesla is yet to announce its financial earnings for the quarter, the company’s updates so far hint at a drastic growth for the energy storage segment.

In the third quarter, the company reported a 44% growth in revenue from its energy segment while automotive revenue growth was a mere 6%. Energy storage revenue in fact accounted for over 12% of the company’s overall revenue in the three months through the end of September, marking a growth from Q3 2024 when it accounted for only about 9% of the company’s overall revenue.

Ross Gerber, President and CEO at Gerber Kawasaki Wealth & Investment Management, termed the energy business as the “best” that Tesla has at the moment. “Energy storage has a very bright future,” he wrote in a post on X.

Tesla Adds To Its Energy Storage Product Portfolio

The company in September unveiled a new energy storage system called the Megablock, adding to its portfolio of products in the segment including the Megapack and the Powerwall. Tesla's Megablock energy storage capacity is a pre-engineered, plug-and-play unit designed for 20 megawatt-hours (MWh) of usable AC energy, integrating four Megapack 3 units, a transformer, and switchgear for utility-scale deployment.

“Demand for Megapack and Powerwall continues to be really strong into next year. We received very strong positive customer feedback on our MegaBlock product, which will begin shipping next year out of Houston,” Tesla executive Michael Snyder said in October. Tesla is looking to launch its third megafactory in Houston in 2026 in addition to its existing ones in California and Shanghai, China.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around TSLA  fell from ‘bearish’ to ‘extremely bearish’ territory over the past 24 hours, while message volume rose from ‘normal’ to ‘high’ levels.

A Stocktwits user said that the year is off to a great start for Tesla bears.

Another, however, opined that the stock will be a “safe bet” for a long time.

TSLA stock has gained 16% over the past 12 months. 

Read also: Rivian Stock Falls As Q4 Deliveries Falls Year-On-Year But Within Its Own Subdued Estimates

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