In the first quarter of the year, Tesla’s Megapack deployment and the company’s energy business achieved significant milestones. The company’s energy business attained higher profit margins than ever before, surpassing the automotive margins of 18.5 percent in Q1. Tesla anticipates this positive trend to continue, with a projected at least 75 percent increase in overall energy storage deployments compared to last year. The first quarter also marked record highs in deployments, with Tesla deploying a total of 4.1 GWh of energy storage, primarily driven by Megapack deliveries.
Elon Musk, during the call, expressed that the Megapack achieved an all-time high in Q1, leading to record profitability for the energy business. The company expects this trend to persist in the coming quarters and years. Tesla is gearing up for volume production at both of its plants, which are projected to be capable of producing 10,000 Megapacks per year once operational. The ramp-up at Lathrop is progressing as planned, with the second GA line set to increase the exit rate from 20 GWh per year at the start of the year to 40 GWh per year by year-end, according to Mike Snyder, Tesla’s Senior Megapack Director, in the Q1 2024 call.
Further, Tesla deployed 15 GWh of batteries in 2023, up from 6.5 GWh in 2022, and anticipates triple-digit growth in this area. Overall, the strong Megapack deployment and the growth of Tesla’s energy business signal a positive trajectory for the company’s sustainability initiatives and financial performance.