In its Q4 and FY 2023 Update Letter, Tesla mentioned that the volume growth of its automotive business would be lower this year due to the company’s focus on the next-generation platform. Simultaneously, Tesla stated that the growth rate of deployments and revenue in its energy storage business is expected to outpace the automotive division. This is in line with the impressive growth shown by Tesla Energy in recent quarters.
Elon Musk, during the Q4 and FY 2023 earnings call, highlighted the significant growth of the energy storage business. He mentioned that the energy storage business delivered nearly 15 GWh of batteries in 2023, compared to 6.5 GWh the year before, indicating triple-digit year-over-year growth. Musk predicted continued strong growth in storage, expressing confidence in the business’s potential to surpass the auto business in terms of growth rate in 2024.
The Tesla Energy team’s efforts were acknowledged, as it was noted that the business is poised to outperform the auto business in terms of growth rate in 2024. It was also mentioned that the company would include the results of the division in its quarterly reports starting Q1 2024 due to the notable growth of Tesla Energy.
Furthermore, there was appreciation for the partners who put their trust in the Megapack team and recognition for the efforts of the Megapack engineering and production teams for their strong execution in 2023. The Megafactory in Lathrop is expected to double its capacity from 20 to 40 GWh by the end of the year, as it continues to ramp through 2024 with the operation of a second final assembly line.
Overall, Tesla has been focusing on the growth of its energy storage business, expecting it to outperform the automotive division in terms of growth rate in the coming year.