For most people, Tesla is a car manufacturer from the United States of America. The main car models are Model 3, Model Y, Model S, Model X and Cybertruck. But we will talk about this direction in more detail in another article, and in this article I will talk about another direction of this company.
Personally, I learned about Tesla’s second direction when I started analyzing it. I had no idea that the electric car manufacturer would create something in the energy sector, although it makes sense.
Currently, in addition to electric vehicles, the company also produces electricity storage systems, including MEGAPACK for large energy projects and POWERWALL for home use. The company also works with solar energy.
If you look at Tesla’s financial statements over the past few years, you will notice that it officially identifies Energy Generation and Storage as a separate operating segment.
Why is Energy Generation and Storage important?
When we talk about solar power plants or wind power plants, we imagine that they work at the moment when the sun shines and the wind blows. They also work when these factors are absent, respectively, the process stops or proceeds at a minimal pace.
And in order not to depend on external factors, it was necessary to come up with a system that would allow all this energy to be accumulated, that is, to create a reserve that could be used at any time in the future, if necessary.
This is where battery storage systems come in.
According to the IEA, global installations of utility-scale battery storage will reach a record 63 GW in 2024, with total installed capacity of such systems reaching 124 GW. The IEA also notes that batteries are becoming an important tool for integrating solar and wind generation into the electricity grid.
MEGAPACK
One of Tesla’s key products in this direction is the MEGAPACK, which is a large-scale battery system that can be used to store electricity and support power grids, and this business is actually growing rapidly.
If we analyze Tesla’s quarterly report for 2026, we can see that in the second quarter of 2026, Tesla’s revenue from Energy Generation and Storage amounted to $3.139 billion, while a year ago for the same quarter it amounted to $2.789 billion. That is, it increased by approximately 13%
How big is this business?
From Tesla’s quarterly report, we see that in the first half of 2026, it received $5.547 billion in revenue from Energy Generation and Storage. For comparison, the automotive business brought in approximately $36.75 billion in revenue during the same period.
From this we conclude that the automotive direction still remains a much larger part of the company, but the energy direction is already large enough to be a separate important part of Tesla.
Is Tesla gradually becoming an energy company?
In my personal opinion, at the moment, I cannot assure you that this is the case, but there are certain factors that lead me to such thoughts.
First, the company announces the development of MEGAFACTORIES in Shanghai (China) and Lathrop (USA, California), as well as the construction of a new MEGAFACTORY near Houston (USA, Texas)
Secondly, Tesla introduced MEGAPACK 3 and MEGABLOCK — the next generation of industrial electricity storage systems.
Third, Tesla installed 46.7 GWh of energy storage systems in the year.
Based on this, we can conclude that Energy Storage is not a small experiment within an automotive company, but a real business with scalability.
What do I think about Tesla as a CLEAN-TECH company?
At the moment, the company can no longer be associated exclusively as a car manufacturer, and during the analysis, it is also worth taking into account its direction in the energy sector, as this is becoming a significant part of the business.
At the moment, Tesla has many competitors, especially from Asian countries, and a lot depends on policies, subsidies, or the cost of raw materials.
Therefore, before investing, I do not ask myself how good this company is, but rather direct my attention to how successfully Tesla will be able to turn its technological capabilities into a profitable large-scale business?
This article is not financial advice or recommendation.
This is my first company research in this area and my path to professional expertise in CleanTech Investment Research.
- Is Tesla a CleanTech company or something more?
For most people, Tesla is a car manufacturer from the United States of America. The main car models are Model 3, Model Y, Model S, Model X and Cybertruck. But we will talk about this direction in more detail in another article, and in this article I will talk about another direction of this company.… Read more: Is Tesla a CleanTech company or something more?
