Tesla’s energy storage business is growing faster than any other part of the company

Tesla's energy storage division grew 48% in 2025, deploying 46.7 GWh and generating $12.8 billion in revenue with 29.8% gross margins—nearly double its automotive business. Products like Megapack and Powerwall now contribute nearly a quarter of Tesla's gross profit. The company expects to recognize $4.96 billion in deferred revenue from storage projects in 2026, though challenges include phased-out residential tax credits and potential tariff impacts on battery cell prices.