On January 24th, EnergyTrend reported Tesla's financial results for the fourth quarter and the entire year of 2023. According to the earnings report, Tesla raked in a whopping $96.773 billion in total revenue for 2023, marking a record high and a 19% increase compared to the previous year. While the growth rate exhibited a bit of a slowdown, the net profit still soared to $14.997 billion, reflecting a year-on-year increase of 19%.
Impressive Performance in Energy Storage Business
According to the latest earnings report, Tesla is making significant strides in its energy storage business. The total installed capacity is projected to hit 14.7GWh in 2023, marking a remarkable 125% year-on-year increase and a substantial jump from 6.5GWh in 2022. Elon Musk, in a conference call, expressed optimism about the future growth of Tesla's energy storage capacity. "The energy storage business is set to outpace the vehicle business in terms of growth," Musk stated. Tesla ventured into the energy storage sector in 2015, introducing the Powerwall for household energy storage. In 2019, the company launched the Megapack, targeting large-scale energy storage and the commercial and industrial markets. Since 2022, Tesla's energy storage business has experienced a surge, reaching an installed capacity of 6.5GWh in 2022.
As the energy storage market continues to gain momentum in 2023, Tesla's energy storage business is experiencing rapid expansion. Recognizing the need for increased production capacity, Tesla initiated the construction of an energy storage super factory in December 2023. Notably, this project in Shanghai marks Tesla's first energy storage super factory outside of the United States, underscoring the company's commitment to meeting the growing demand in the global energy storage market.
Tesla has announced plans for its new factory, slated to produce Megapack, the large-scale commercial energy storage battery packs. The initial projections indicate an annual output of 10,000 units, contributing to a substantial energy storage scale of nearly 40GWh. Moreover, Tesla aims to distribute Megapack globally. Construction of the plant is set to kick off in the first quarter of 2024, with production scheduled to commence in the fourth quarter.
On the supply side, Tesla's strategic decision to establish its inaugural overseas energy storage super factory in Shanghai, China, underscores the company's recognition of China's significant competitive advantage in the energy storage industry chain. By tapping into this robust supply chain, Tesla aims to drive down costs, enhance production capacity, and effectively address the burgeoning global demand in the rapidly expanding energy storage market.