AUSTIN, Texas — Tesla's energy business is emerging as one of the company's fastest-growing engines, with the automaker confirming a record quarter for Megapack and Powerwall deployments as its global network of battery "Megafactories" pushes toward full capacity.
The surge builds on the momentum Tesla flagged when it reported a sharp rebound in energy and services margins earlier this week, a result that lifted overall profitability and underscored how quickly storage has grown from a side project into a pillar of the business.
Storage Demand Outpaces Supply
Deployments of Tesla's grid-scale Megapack and residential Powerwall systems reached an all-time high, with demand continuing to outrun the company's ability to build cells and packs. The Lathrop, California Megafactory is running at full tilt, while the Shanghai Megafactory — Tesla's first storage plant outside the United States — has ramped faster than planned and is now shipping Megapacks to markets across Asia, Europe and the Middle East.
Executives have long argued that stationary storage could eventually rival the car business in size, and the latest figures add weight to that case. Utilities racing to firm up renewable power and data-center operators hunting for reliable backup have turned Megapack into one of the most sought-after products in the clean-energy market, with order books stretching well into next year.
Margins Follow Volume
Energy storage now carries some of the healthiest margins in Tesla's lineup, a shift that has reshaped how investors value the company. The division's growth has also helped cushion the automaker through a period of heavy investment, even as Tesla keeps spending on robotaxis, AI and new factories while holding a cash cushion north of $45 billion.
