Tesla’s energy storage business is booming, offsetting weak electric vehicle sales and driving profits higher in 2025.
In 2025, Tesla deployed a record 46.7 gigawatt-hours of energy storage products. This is 48% more than last year. Big batteries like the Megapack and Powerwall, along with solar products, now help make almost a quarter of Tesla’s profits. Just last quarter, the Megapack alone brought in $1.1 billion from a total of $3.8 billion in profits for the year.
Tesla’s storage and energy revenues climbed 26.5% to $12.8 billion. These batteries and solar panels are very profitable, with a gross margin of nearly 30%. This is almost double the profits Tesla earns from selling cars and trucks. The company believes that storage will be even more important in the future.
Tesla expects to see about $4.96 billion in revenue this year from ongoing storage projects. This is more than double what it recognized in 2025. However, some challenges exist. A new law, called the One Big Beautiful Bill Act, has ended tax credits for home energy storage systems like the Powerwall. But tax credits for commercial products like the Megapack will continue for many years.
Sales went up because more products were sold, but the price for a Megapack went down, showing there is more competition in the market. Still, Tesla is positive about its storage business. The company sees chances for its products to help balance the grid and provide power when needed, even as challenges arise.