Tesla Energy 2025 Annual Results: 46.7 GWh Deployed, 29.8% Segment Gross Margin

Key takeaways

• Tesla deployed 46.7 GWh of energy storage in 2025 (10-K p.31). The FY2024 comparative of 31.4 GWh, a 49 % increase, appears in the Q4 & FY2025 Update deck rather than the 10-K.
• Energy generation and storage segment revenue was $12,771 million, up $2,685 million or 27 % from $10,086 million in FY2024. Company-wide revenue fell 3 % over the same period.
• Energy segment gross margin was 29.8 %, up from 26.2 % in FY2024 and 18.9 % in FY2023.
• Manufacturing credits benefiting energy cost of revenue were $1.12 billion, against $756 million in FY2024. That equals 29.5 % of energy segment gross profit (derived).
• Unsatisfied performance obligations for contracts with an original expected length of more than one year totalled $10.42 billion, of which $4.96 billion is expected to be recognised in the next 12 months.
• Tesla states it introduced Megapack 3 and Megablock in 2025. The 10-K gives no specifications, capacity, pricing or production-start date for either product.

1. Headline numbers

Tesla reported total revenue of $94,827 million for the fiscal year ended December 31, 2025, down $2,863 million or 3 % from $97,690 million in FY2024 (p.37). Net income attributable to common stockholders was $3,794 million, against $7,091 million in FY2024 and $14,997 million in FY2023 (p.50). Diluted EPS was $1.08, against $2.04 and $4.30 in the two prior years.

Income from operations was $4,355 million, against $7,076 million in FY2024. Total gross profit was $17,094 million versus $17,450 million, and total gross margin was 18.0 % against 17.9 % (p.38). R&D was $6,411 million, up 41 % from $4,540 million, and equal to 7 % of revenue against 5 % in FY2024 (p.39). SG&A was $5,834 million against $5,150 million (p.40).

Cash and investments stood at $44.06 billion at year end, up $7.50 billion. Cash from operations was $14.75 billion against $14.92 billion, and capital expenditures were $8.53 billion against $11.34 billion, a decrease of $2.82 billion (p.31). Headcount was 134,785 worldwide at December 31, 2025 (p.11); the filing gives no FY2024 comparative.

Metric	FY2025	FY2024	Change
Energy segment revenue	$12,771 M	$10,086 M	+$2,685 M / +27 %
Energy cost of revenue	$8,969 M	$7,446 M	+$1,523 M / +20 %
Energy gross profit	$3,802 M	$2,640 M	+$1,162 M
Energy gross margin	29.8 %	26.2 %	+3.6 pp
Energy storage deployed	46.7 GWh	31.4 GWh	+49 %
Energy manufacturing credits in COGS	$1,120 M	$756 M	+$364 M
Energy segment inventory	$2,714 M	$2,029 M	+$685 M
Total revenue	$94,827 M	$97,690 M	−$2,863 M / −3 %
Automotive & services revenue	$82,056 M	$87,604 M	−$5,548 M / −6 %
Total gross margin	18.0 %	17.9 %	+0.1 pp
Automotive & services gross margin	16.2 %	16.9 %	−0.7 pp
R&D	$6,411 M	$4,540 M	+$1,871 M / +41 %
Net income attributable	$3,794 M	$7,091 M	−$3,297 M
Capital expenditures (p.53)	$8,527 M	$11,342 M	−25 %

Energy segment figures are from pages 37, 38, 59, 93 and 94 of the 10-K. The 46.7 GWh figure for 2025 is from page 31 of the 10-K; the 31.4 GWh FY2024 comparative is from the Q4 & FY2025 Update deck, page 7.

2. Energy storage deployed: 46.7 GWh

Tesla deployed 46.7 GWh of energy storage in 2025 (p.31). The 10-K contains no prior-year comparative for deployments.

The Q4 & FY2025 Update deck sets out the full series: 4.0 GWh in 2021, 6.5 GWh in 2022, 14.7 GWh in 2023, 31.4 GWh in 2024 and 46.7 GWh in 2025, which the deck reports as a 49 % year-on-year increase (Q4 deck, p.7).

By quarter, the deck reports 11.0 GWh in Q4 2024, then 10.4 GWh, 9.6 GWh, 12.5 GWh and 14.2 GWh across the four quarters of 2025, with Q4 2025 up 29 % year-on-year (Q4 deck, p.6). The four 2025 quarters sum to 46.7 GWh (derived).

On timing, the 10-K states: “For Megapack, energy storage deployments can vary meaningfully quarter to quarter depending on the timing of specific project milestones and logistics” (p.33).

3. Energy segment revenue and margins

Energy generation and storage revenue was $12,771 million, up from $10,086 million in FY2024 and $6,035 million in FY2023 (p.37, p.50, p.93). That is 13.5 % of company-wide revenue (derived: 12,771 ÷ 94,827); the filing does not state a share percentage.

Segment cost of revenue was $8,969 million, up 20 % from $7,446 million (p.38, p.93). Segment gross profit was $3,802 million against $2,640 million in FY2024 and $1,141 million in FY2023, and segment gross margin was 29.8 % against 26.2 % and 18.9 % (p.38).

Quarterly segment revenue, from the Q4 & FY2025 Update deck (p.4), was $3,061 million in Q4 2024, then $2,730 million, $2,789 million, $3,415 million and $3,837 million across 2025, with Q4 2025 up 25 % year-on-year. On Q4 gross profit the deck states, in its energy generation and storage commentary: “Total gross profit rose, both sequentially and year-over-year, to a record $1.1 billion, marking the fifth consecutive record quarter” (Q4 deck, p.8). That wording is the deck’s, not the 10-K’s.

Energy revenue grew 27 % while deployments grew 49 %. Dividing segment revenue by GWh deployed gives $273.5 million per GWh in FY2025 against $321.2 million per GWh in FY2024 (derived). The segment includes solar generation and services as well as storage, so this ratio does not isolate storage.

Depreciation and amortisation within segment cost of revenues was $355 million against $377 million (p.93). Segment inventory was $2,714 million at December 31, 2025 against $2,029 million a year earlier (p.94). Energy generation and storage systems, net, on the balance sheet was $4,604 million against $4,924 million (p.49).

4. Manufacturing credits

Manufacturing credits earned that benefited energy cost of revenue were $1.12 billion in FY2025, against $756 million in FY2024 and $115 million in FY2023 (p.59). The automotive segment separately recorded $565 million, $625 million and $359 million across the same three years. The filing does not use the term “45X”.

The $1.12 billion equals 29.5 % of the $3,802 million energy segment gross profit (derived).

The income tax rate reconciliation separately reports a “Nontaxable manufacturing credits” line of $(354) million in FY2025, against $(291) million and $(101) million (p.85). This is a distinct item from the cost-of-revenue credit.

5. Unsatisfied performance obligations: $10.42 billion

The 10-K states: “As of December 31, 2025, total transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied for contracts with an original expected length of more than one year was $10.42 billion. Of this amount, we expect to recognize $4.96 billion in the next 12 months and the rest over the remaining performance obligation period” (p.58).

The $4.96 billion is 47.6 % of the total (derived). The FY2025 filing gives no prior-year comparative for this figure. As reported in the FY2024 filing, and covered in our FY2024 article, the equivalent figures were $7.18 billion and $4.51 billion; those numbers do not appear in the FY2025 10-K.

The filing notes the disclosure excludes contracts of one year or less and amounts Tesla has the right to invoice corresponding to the value of performance completed to date (p.58). Tesla does not state an order backlog as such.

Energy deferred revenue was $2.04 billion at December 31, 2025 against $1.77 billion a year earlier, and $1.45 billion of the 2024 balance was recognised as revenue during FY2025 (p.58).

6. Products: Megapack 3 and Megablock

The 10-K states: “We continue to increase the production and capabilities of our energy storage products to meet high levels of demand, including the ramps of our Megafactories in Shanghai and Lathrop, California, and the construction of a new Megafactory near Houston, Texas. In 2025, we introduced Megapack 3 and Megablock, our next-generation industrial storage product, and began manufacturing a new residential retrofit solar panel” (p.33).

That sentence is the 10-K’s only reference to the two products. The filing gives no specifications, capacity, pricing or production-start date for either.

The Q4 & FY2025 Update deck adds two statements: “We plan to begin Megapack 3 and Megablock production at Megafactory Houston in 2026” (Q4 deck, p.8), and “Cybercab, Tesla Semi and Megapack 3 are on schedule for volume production starting in 2026” (Q4 deck, p.13).

On software, the filing describes Autobidder for Megapack and Powerhub for distributed energy resources, including Powerwall-enabled virtual power plants (p.3, p.4). On the Powerwall fleet, the deck states: “In 2025, our global Powerwall network supported more than 89,000 Virtual Power Plant events across over 1 million installed units, allowing homeowners to save over $1 billion in electricity bills” (Q4 deck, p.8).

Tesla also states it “began manufacturing a new residential retrofit solar panel in 2025, and began initial customer deliveries in January 2026” (p.4), that “In 2026, we will be ramping six new production lines across vehicle, Bots, energy storage and battery manufacturing” (p.4), and that its in-house lithium refinery in Texas “began operations in January 2026” (p.7).

Energy generation and storage systems carry warranties “typically between 1 to 25 years” (p.35). Total accrued warranty was $8,607 million (p.47) and the filing states it “is primarily related to our automotive segment” (p.35).

7. Megafactories and installed capacity

The 10-K contains no manufacturing capacity figures. Capacity data below is from the Q4 & FY2025 Update deck, which carries the footnote “Installed capacity ≠ current production rate”.

Installed annual capacity by site (Q4 deck, p.8)

| Site | Product | Installed annual capacity | Status | |---|---|---|---| | California | Megapack | 40 GWh | Production | | Shanghai | Megapack | 40 GWh | Production | | Nevada | Powerwall | >6 GWh | Production | | Texas | Megapack | Not stated | Construction | Related battery capacity (Q4 deck, p.9): Nevada LFP 7 GWh (Early Ramp); Texas 4680 40 GWh (Production); Cathode Materials 10 GWh (Early Ramp); Lithium Refining 30 GWh (Early Ramp).

In the Item 2 Properties table, the 10-K lists “Megafactory Lathrop

Lathrop, California

Leased” and “Megafactory Shanghai

Shanghai, China”, the latter with the footnote “We own the building and the land use rights with an initial term of 50 years” (p.28). Shanghai is cited as a cost driver: “lower manufacturing costs for Megapack in part from the ramp of Shanghai Megafactory” (p.39).

Houston appears in the 10-K only as “the construction of a new Megafactory near Houston, Texas” (p.33). It is not in the Item 2 Properties table (p.28), and the filing gives no capacity, cost, ownership status, precise location or start date. The deck lists it as “Texas

Megapack

–

Construction” (Q4 deck, p.8).

On capital spending the 10-K states: “We currently expect our capital expenditures to be in excess of $20 billion in 2026, driven by our AI initiatives, including investments in compute infrastructure and data centers, the expansion and ramp of our manufacturing and R&D production lines and facilities…” (p.33). This is company-wide; no energy-segment capex figure is given.

8. Geographic revenue

Tesla reports geographic revenue company-wide only, with no energy-segment split.

Region	FY2025	FY2024	Share FY2025 (derived)
United States	$47,627 M	$47,725 M	50.2 %
China	$20,962 M	$20,944 M	22.1 %
Other international	$26,238 M	$29,021 M	27.7 %
Total	$94,827 M	$97,690 M	100 %

Long-lived assets were $35,847 million in the US against $32,461 million a year earlier, $4,775 million in Germany against $4,175 million, and $4,625 million in other international locations against $4,124 million (p.93).

9. Related party disclosure

The 10-K states: “we recognized $430 million of revenues and $285 million of cost of revenues from xAI for its purchase of our Megapack products in the ordinary course of business” (p.92).

The $430 million is 3.4 % of segment revenue, and the difference between the two figures is $145 million of gross profit (both derived). xAI is the only named energy storage customer, project or offtake counterparty anywhere in the filing.

10. Market context in the filing’s own words

On tariffs (p.31): “The current tariff regime will have a relatively larger impact on our energy generation and storage business compared to our automotive business.”

On the business (p.33): “The long-term success of this business is dependent upon incremental volume growth.” And: “As these product lines grow, we will have to maintain adequate battery cell supply for our energy storage products.”

On demand (p.33): “Despite these challenges, as AI infrastructure drives rapid load growth, we see opportunities for our energy storage products to stabilize the grid, shift energy when it is needed most and provide additional power capacity.” And (p.3): “As AI infrastructure drives rapid load growth, Megapack helps to, among other things, increase utilization of existing generation and transmission capacity, resulting in a more efficient use of the electric grid.”

On policy (p.7), the IRA was enacted August 16, 2022, with incentives “subsequently substantially curtailed by the One Big Beautiful Bill Act (the ‘OBBBA’) enacted on July 4, 2025, which repeals individual consumer tax credits for electric vehicles and residential energy property…”. The filing adds (p.8) that under Sections 48, 48E and 25D of the Internal Revenue Code “standalone energy storage technology is eligible for a tax credit between 6% and 50% of qualified expenditures, regardless of the source of energy… Residential credits expired on December 31, 2025, and commercial credits are currently scheduled to phase out in 2034 or later.” Where customers transfer credits to Tesla as contract consideration, those amounts are “included as a component of energy generation and storage revenues” (p.8).

Among risk factors, the filing states: “We have experienced, and may also experience similar future delays in launching and/or ramping production of our energy storage products and Solar Roof” (p.12), and “Any disruption in the supply of battery cells from our suppliers could limit production of our vehicles and energy storage products” (p.14).

11. What the filing does not disclose

Tesla reports two segments, automotive and energy generation and storage (p.93). On segment measurement the filing states: “Our CODM does not evaluate operating segments using asset or liability information. The CODM uses gross profit to allocate operating and capital resources and assesses performance of each segment by comparing actual gross profit results to historical results and previously forecasted financial information” (p.93).

The following are absent from the FY2025 10-K:

• Any split of storage versus solar within the energy segment; there is no Megapack-only or Powerwall-only revenue, volume, ASP or margin figure
• Unit shipments, ASPs or price points for any energy product; ASP movements are described only directionally (p.38)
• Segment operating income, operating expenses, R&D, capital expenditures, assets or liabilities
• Manufacturing capacity figures of any kind
• Capacity, cost, timeline, ownership status or precise location for Megafactory Houston
• Megapack 3 or Megablock specifications
• A geographic revenue split for the energy segment
• An order backlog stated as such, separate from the ASC 606 unsatisfied performance obligation disclosure
• Named energy storage customers or projects other than xAI
• Energy-segment headcount
• A 2026 deployment target
• A FY2024 comparative for storage deployments

12. Summary of ESS-related figures

Deployments and revenue. 46.7 GWh deployed and $12,771 million of segment revenue in FY2025, against 31.4 GWh (Q4 deck, p.7) and $10,086 million in FY2024. Deployments grew 49 % and revenue grew 27 %. Revenue per GWh was $273.5 million against $321.2 million (derived, whole segment).

Margin. Segment gross margin was 29.8 %, against 26.2 % in FY2024 and 18.9 % in FY2023. Company-wide gross margin was 18.0 %; automotive and services was 16.2 %.

Credits. $1.12 billion of manufacturing credits benefited energy cost of revenue, equal to 29.5 % of segment gross profit (derived), against $756 million in FY2024.

Performance obligations. $10.42 billion unsatisfied or partially unsatisfied for contracts longer than one year, of which $4.96 billion is expected within 12 months. No prior-year comparative in this filing.

Products. Megapack 3 and Megablock introduced in 2025 per the 10-K, with production at Megafactory Houston planned for 2026 per the Q4 deck. No specifications in either document.

Capacity. Not in the 10-K. The Q4 deck lists 40 GWh installed Megapack capacity in California, 40 GWh in Shanghai, more than 6 GWh of Powerwall capacity in Nevada, and Texas in construction with no figure stated.

13. Related reading

Other annual report analyses in this series:

• Tesla Energy 2024 Annual Results — the FY2024 comparison: 31.4 GWh deployed, $10.09 B energy revenue, 26.2 % segment margin
• CATL 2025 Annual Results — 121 GWh ESS shipped, 26.27 % group gross margin, Hong Kong IPO
• EVE Energy 2025 Annual Results — 71 GWh of ESS cells, cylindrical and prismatic expansion
• Gotion High-Tech 2025 Annual Results — Volkswagen-backed cell maker’s ESS reporting
• Samsung SDI 2025 Annual Results — Energy Solutions segment results and US factory plans

Figures in those articles are drawn from each company’s own filings and cover their respective fiscal years; they are not restated here on a like-for-like basis with Tesla’s FY2025.

14. Sources

Financial statement and MD&A figures in this article come from Tesla’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the US Securities and Exchange Commission. The auditor is PricewaterhouseCoopers LLP, whose report is dated January 28, 2026 (p.48). Deployment history by year and quarter, quarterly segment revenue, installed capacity and the Powerwall virtual power plant statistics come from the Q4 & FY2025 Update deck and are labelled as such in the text.

• Tesla Annual Report on Form 10-K, fiscal year ended December 31, 2025 — full financial statements, MD&A and segment note
• Tesla Q4 & FY2025 Update deck (PDF) — deployment history, quarterly segment revenue, installed capacity table
• Tesla Energy Manufacturer Profile — BESS Manufacturers directory page