Tesla Energy — FY2024 at a Glance

NASDAQ: TSLA · Tesla Energy founded 2015 · Austin, Texas, USA
Total revenue (company-wide)
$97,690 M
YoY change
+1 %
Net income (attrib.)
$7,091 M (−53 %)
Energy segment revenue
$10,086 M (+67 %)
Energy segment gross profit
$2,640 M (+131 %)
Energy segment gross margin
26.2 % (up from 18.9 %)
Energy storage deployments
31.4 GWh (+114 %)
Employees
125,665

Key takeaways

  • Tesla deployed 31.4 GWh of energy storage in 2024, up 114 % from the 14.7 GWh deployed in 2023.
  • Energy segment revenue reached $10.1 billion, up 67 % year-on-year, making energy the fastest-growing business within Tesla and accounting for roughly 10 % of company-wide revenue.
  • Energy segment gross margin rose to 26.2 %, up from 18.9 % in 2023. Tesla cited manufacturing cost reductions and $756 million in IRA manufacturing credits recognized in cost of goods sold.
  • Megafactory expansion advanced on two fronts: the Lathrop, California facility continued ramping while a second Megafactory in Shanghai moved toward production.
  • Unsatisfied performance obligations in the energy segment exceeded $7.18 billion for contracts with an original expected length of more than one year, of which $4.51 billion is expected to be recognized in the next 12 months.

1. Headline numbers

Tesla reported total revenue of $97.7 billion for the year ended December 31, 2024, up 1 % from the prior year. Net income fell 53 % to $7.1 billion.

Energy revenue grew 67 % to $10.1 billion, and energy gross profit rose 131 % to $2.6 billion. Company-wide gross margin was 17.9 %; the energy segment reported 26.2 %. R&D spending across all segments was $4.54 billion.

2. Energy storage deployments: 31.4 GWh

Tesla deployed 31.4 GWh of energy storage products in FY2024, up 114 % from 14.7 GWh in FY2023. The company attributed the increase primarily to higher Megapack and Powerwall volumes.

For comparison, CATL shipped 93 GWh of ESS batteries in calendar year 2024, though that figure covers cell shipments to third-party integrators rather than fully integrated systems. EVE Energy shipped approximately 50 GWh of ESS cells in the same period (derived from EVE’s 71.05 GWh in 2025 and its stated 41 % year-on-year increase). Sungrow, a system integrator rather than a cell manufacturer, shipped 28 GWh against Tesla’s 31.4 GWh. Tesla sells the Megapack as a turnkey DC block, while Sungrow offers a range of inverter-plus-battery configurations.

Tesla does not disclose a Megapack vs. Powerwall split for its 31.4 GWh figure. Each Megapack unit stores approximately 4 MWh and each Powerwall about 13.5 kWh.

3. Energy segment revenue and margins

Energy segment revenue of $10.1 billion represented approximately 10.3 % of Tesla’s total revenue, up from 6.2 % in FY2023. The segment’s 67 % revenue growth on 114 % deployment growth implies a decline in average revenue per GWh (derived).

Energy segment gross margin expanded from 18.9 % to 26.2 %, an improvement of 730 basis points. Tesla cited three drivers: manufacturing cost reductions, benefits from IRA manufacturing credits, and a higher proportion of storage in the energy segment mix.

Peer comparison: CATL’s ESS segment reported a 26.84 % gross margin in 2024 on cell sales. Sungrow reported a 36.69 % gross margin in its energy storage segment, though Sungrow’s margin includes higher-margin inverter products alongside storage systems. Tesla does not report operating income at the segment level — the 10-K uses gross profit as its segment profitability measure — so a direct operating margin comparison is not possible.

4. Megafactory expansion

Tesla’s Megapack production is centered on its Megafactory in Lathrop, California, which continued ramping through 2024. The company also disclosed that a second Megafactory in Shanghai was ramping production.

The 10-K does not disclose production capacity in GWh terms for either facility. However, Tesla indicated it expects capital expenditures to exceed $11 billion in 2025 and in each of the following two years, driven in part by energy storage manufacturing expansion alongside AI and automotive investments.

China accounted for $20.9 billion (21.4 %) of Tesla’s total revenue in FY2024, though this figure is company-wide with no energy segment geographic breakdown available.

5. Product developments

Megapack

Megapack is Tesla’s utility-scale energy storage product — a 4 MWh DC-coupled battery system. Projects group Megapack units into installations measured in GWh. Against a 4 MWh unit size, the 31.4 GWh deployed in FY2024 corresponds to several thousand units (derived); Tesla does not disclose unit counts.

Tesla designs the Megapack battery module, thermal management, power electronics, and software in-house.

Powerwall 3

Tesla introduced Powerwall 3 in 2024, its residential battery system, rated at about 13.5 kWh per unit.

The 10-K does not break out Powerwall revenue or unit shipments separately, so it is not possible to assess the residential product’s standalone financial contribution.

6. IRA manufacturing credits

A significant factor in the margin expansion was $756 million in IRA (Inflation Reduction Act) manufacturing credits recognized as a reduction in cost of goods sold during FY2024, compared to just $115 million in FY2023. These credits apply to domestically manufactured battery components and energy storage systems.

The $756 million in credits represents roughly 29 % of the energy segment’s $2.6 billion gross profit (derived). The credits apply to Tesla’s US manufacturing; Chinese manufacturers such as CATL and EVE Energy do not receive US manufacturing credits.

7. Market context

The utility-scale BESS market is growing alongside rising renewable penetration, grid reliability requirements, and declining battery costs. Tesla’s Megapack competes with products from BYD, Sungrow, CATL (through its TENER line), and other Chinese integrators selling into international markets.

Tesla’s company-wide geographic revenue split was the US at 48.9 %, China at 21.4 %, and other international markets at 29.7 %. The company does not provide this breakdown at the energy segment level.

Tesla reported $7.18 billion in unsatisfied performance obligations for contracts with an original expected length of more than one year, of which $4.51 billion is expected to be recognized in the next 12 months. The figure includes both energy generation and storage contracts without separation.

8. Additional detail from the filing

IRA manufacturing credits. The $756 million in credits recognized in FY2024 equals roughly 29 % of energy segment gross profit (derived), against $115 million in FY2023. Energy segment gross margin was 26.2 %.

Shanghai Megafactory. Tesla disclosed that a second Megafactory in Shanghai was ramping production. The ramp timeline and initial capacity were not disclosed.

Revenue per GWh. Energy revenue grew 67 % on 114 % deployment growth, implying a decline of roughly 22 % in average revenue per GWh (derived).

Energy share of company revenue. Energy was approximately 10.3 % of Tesla’s revenue in FY2024, up from 6.2 % in FY2023.

Performance obligations. Tesla reported $7.18 billion in unsatisfied performance obligations, of which $4.51 billion is expected within 12 months. Tesla does not disclose a formal order backlog for Megapack.

Other annual report analyses in this series:

10. Sources

All data in this article is sourced from Tesla’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the US Securities and Exchange Commission.

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