Sleeping Giant

It’s easy to forget about Tesla’s energy business

On Tesla’s Q4 and full year earnings call Elon Musk shared good news on the energy business, which “achieved yet another record in terms of gross profit for the quarter and ended the year with nearly $12.8 billion in revenue, a 26.6% year-over-year growth.”

While everyone is obsessed with the number of cars rolling off the line, it’s easy to forget about Tesla’s energy business. If Tesla Energy were a standalone company its revenue would be greater than eBay, Workday and Lululemon. All S&P 500 companies.

Turning to the future of the business:

As we look at 2026, our backlog remains strong, well-diversified globally, and we expect increasing deployments with the launch of MegaPack 3 and Mega Block. However, we expect margin compression from the increased low-cost competition impacts the market from policy uncertainty, and the cost of tariffs. (Tesla CEO Elon Musk)

The MegaPack and Powerwall businesses are growing at nearly 27% per annum, before the new products that hit the market this year. Exciting stuff.

Please “Like ♥️” this piece!