Tesla Energy Generation And Storage Business: Q3 2020 Results

Tesla deployed a record 759 MWh of battery energy storage systems.

Tesla’s energy business has grown significantly in the Q3 2020, and ESS deployment hit a new all-time high.

Tesla Energy revenues amounted to $579 million, while the cost of revenues stands at $558 million. The difference is only $21 million, which translates to a gross margin of 3.6%.

Tesla Energy stands also at 6.6% of the total Tesla Q3 revenues.

Tesla energy storage deployed – Q3’2020

Total battery energy storage (Powerwall, Powerpack and Megapacks) deliveries in the quarter increased to 759 MWh (up 59% year-over-year).

Year-to-date deployment is 1,438 MWh, which means that Tesla should be able to exceed 2 GWh in 2020.

Tesla noted that Megapack (3 MWh energy storage for utilities) for the first time generated profits. The company is also expanding its real-time energy trading platform – Autobidder.

“Megapack production continued to ramp at Gigafactory Nevada as production volumes more than doubled in Q3.

Powerwall demand remains strong and is growing, particularly as our solar business grows as many customers include a Powerwall with their solar installation.

Additionally, we are seeing accelerating interest in Powerwallas concerns with grid stability grow, particularly in California.

We continue to believe that the energy business will ultimately be as large as our vehicle business.”

Tesla offers three types of ESS products:

Tesla Powerwall