Tesla's Energy Business Has Grown 7x in Five Years

While Tesla’s automotives sales have stumbled, its energy business has quietly become one of the strongest parts of the business. This chart, using Tesla’s financial disclosures, highlights how the automaker’s business that develops, builds and sells photovoltaic solar systems and battery energy storage products has grown more than 700% since 2019.

In 2025, Tesla's energy generation and storage division posted $12.77 billion in revenue, a 27% year-over-year increase, as automotive revenue dropped 10%.

Behind the growth is the Megapack, Tesla's utility-scale battery product built for grid operators and renewable energy developers. In 2025 alone, global deployments totaled 46.7 gigawatt-hours. 

But the real story is the division’s growth margins of 31.4%, making energy Tesla's most lucrative segment by margin, nearly double the automotive segment's 17% margins. Gross profit for the full year rose to roughly $1.1 billion.

What's next: Tesla is ramping Megapack 3 and the new 20 megawatt-hour Megablock solution, with production starting at Megafactory Houston in 2026, alongside existing facilities in California and Shanghai. 

Energy storage accounted for 13% of Tesla's total revenues in 2025, up from 10% in 2024.