Recently, Tesla released its financial results for the fourth quarter and full year of 2025. Against the backdrop of a dual decline in both revenue and profit for its core automotive business, the company’s energy storage business delivered a stellar full-year performance. Its explosive growth in revenue, profit margin and deployment volume made it the standout highlight of Tesla’s 2025 financial results, validating the strategic value of the energy revolution layout outlined in Elon Musk’s Master Plan.
According to the financial results, Tesla’s energy storage business achieved a robust dual growth in both revenue and profit. In 2025, the business posted revenue of $12.77 billion, representing a 27% year-over-year increase; its Q4 revenue hit $3.84 billion, up 25% from the same period a year earlier. In terms of profitability, the energy storage business recorded a gross margin of 28.7% in the fourth quarter, with gross profit reaching a new high of $1.1 billion.
In terms of installed capacity, Tesla’s global energy storage deployments totalled 46.7 GWh in 2025, a 49% year-over-year surge. Of this, 14.2 GWh were deployed in Q4, which has continuously set new quarterly records, driven primarily by strong demand for its Megapack energy storage product.
Currently, Tesla has built a three-dimensional product portfolio covering residential, commercial & industrial, and mobile energy storage solutions. To meet market demand, the company has established a production capacity layout across North America, Asia and Europe. Its Shanghai Megafactory for Energy Storage commenced operations in February 2025, designed with an annual production capacity of 40 GWh of Megapack units, and has slashed production costs significantly by leveraging the advantages of the localized supply chain. As of the end of 2025, the Shanghai plant has rolled off 2,000 Megapack units, with products exported to Europe and Australia.
In addition, Tesla’s California plant in the US is operating at full capacity, while the Houston plant is under accelerated construction and scheduled to start operations by the end of 2026, with a planned annual output of 50 GWh of Megapack units.
The global energy transition is currently gathering pace, and the energy storage market boasts enormous growth potential. Elon Musk stated that 240 TWh of energy storage systems will need to be deployed by 2050 to support the global demand for renewable energy. In 2026, Tesla plans to ramp up capital investment in the energy storage sector, focusing its spending on energy storage, AI and other fields. With the commissioning of new plants and the launch of new products, Tesla’s energy storage business is poised for sustained high-speed growth.
Source：EnergyTrend
