Owing to its new Megafactory, which produces a lot of Megapacks, Tesla has reported a significant rise in energy storage installation in Q1 2023.
The company’s electric vehicle business receives far more media coverage than its energy storage business. And for good reason—the former still represents a small portion of the latter.
But because technology makes it possible to use renewable energy sources like wind and solar power more effectively, it is equally crucial for the shift to a green energy economy.
Even while it isn’t as large as the electric car industry, it is expanding swiftly.
Tesla today announced its Q1 2023 financial results, which confirmed a staggering 360% increase in deployment of energy storage from the previous year.
Tesla attributed the expansion to the California Megafactory’s ramp-up in production:
Due to the ongoing Megafactory ramp, energy storage deployments grew by 360% YoY in Q1 to 3.9 GWh, the greatest level of deployments we have ever accomplished. Our 40 GWh Megapack factory’s ramp has been successful, and there is still space for it to reach its maximum capacity.
Elon Musk, the company’s CEO, acknowledged that there is still “way to go” until the factory can produce 40 GWh annually on a conference call that followed the publication.
The business recently revealed plans to construct a second Megafactory in Shanghai.
Tesla today announced that “many” more Megafactories will be coming in the shareholder letter:
There will be many more Megapack factories after this one. We have revealed that building will begin later this year on another 40 GWh Megafactory, which will be in Shanghai.
Musk predicted that as production in California picks up and a new factory opens in China, the rise of energy storage will outstrip that of vehicles.
Over the initial three months of the year, 3,889 MWh of energy storage were deployed, according to Tesla. This is an increase of 360% over the same time previous year. Although both Powerwall and Megapack are included in the total, it is thought that the latter represents the great bulk of deployment.
With slightly in excess of $1.5 billion in earnings in the most recent quarter, Tesla’s energy storage division is gradually beginning to take up more of the entire business.
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