Tesla’s energy business achieved significant milestones in the first quarter of 2024, with Megapack deployments reaching an all-time high and the company achieving record profit margins. During the Q1 2024 earnings call last Tuesday, CEO Elon Musk highlighted these achievements, noting that Megapack deployments soared while the energy business reached a remarkable profit margin of 24.6 percent, surpassing automotive margins which stood at 18.5 percent for the same period.
Tesla anticipates this positive trend to continue, with energy storage deployments expected to increase by at least 75 percent compared to the previous year. The company’s total energy storage deployments in Q1 reached a record 4.1 GWh, primarily driven by Megapack deliveries.
Musk expressed confidence in the growth of the Megapack, stating, “The Megapack, in particular, reached an all-time high in Q1, leading to record profitability for the energy business, and that looks likely to continue to increase in the quarters and years ahead.”
Tesla’s Megapack production is scaling up at its first “Megafactory” in Lathrop, California, and construction has commenced on a second Megafactory in Shanghai, China. Both facilities are expected to produce 10,000 Megapacks per year once they reach full production capacity.
Mike Snyder, Tesla’s Senior Megapack Director, highlighted the progress at the Lathrop facility, stating, “Lathrop is ramping as planned. We have our second GA line allowing us to increase our exit rate from 20 GWh per year at the start of this year to 40 GWh per year by the end of the year.”
Tesla’s energy business is on track to outpace its automotive business this year, as indicated during the Q4 2023 earnings call. The company deployed 15 GWh of batteries in 2023, up from 6.5 GWh in 2022, with Musk projecting triple-digit growth in this area.
