Tesla Energy Generation And Storage Business: Q3 2020 Results

Tesla deployed a record 759 MWh of battery energy storage systems.

Tesla’s energy business has grown significantly in the Q3 2020, and ESS deployment hit a new all-time high.

Tesla Energy revenues amounted to $579 million, while the cost of revenues stands at $558 million. The difference is only $21 million, which translates to a gross margin of 3.6%.

Tesla Energy stands also at 6.6% of the total Tesla Q3 revenues.

Tesla energy storage deployed – Q3’2020

Total battery energy storage (Powerwall, Powerpack and Megapacks) deliveries in the quarter increased to 759 MWh (up 59% year-over-year).

Year-to-date deployment is 1,438 MWh, which means that Tesla should be able to exceed 2 GWh in 2020.

Tesla noted that Megapack (3 MWh energy storage for utilities) for the first time generated profits. The company is also expanding its real-time energy trading platform – Autobidder.

“Megapack production continued to ramp at Gigafactory Nevada as production volumes more than doubled in Q3.

Powerwall demand remains strong and is growing, particularly as our solar business grows as many customers include a Powerwall with their solar installation.

Additionally, we are seeing accelerating interest in Powerwallas concerns with grid stability grow, particularly in California.

We continue to believe that the energy business will ultimately be as large as our vehicle business.”

Tesla offers three types of ESS products:

Tesla Powerwall

Tesla Powerpack

Tesla Megapack

Tesla solar deployed – Q3’2020

The solar installations increased by 33% year-over-year to 57 MW, the highest level since Q4 2018.

During the quarter Tesla said that the new, lower prices for its conventional solar solutions translated into higher sales:

“Our recently introduced strategy of low cost solar (at $1.49/watt in the US after tax credit) is starting to have an impact.”

Tesla Solar Panels

Tesla Solar Roof

Solarglass Roof

Tesla said that the Solar Roof installations tripled compared to Q2, which means 9-times the level of Q1. The current peak pace is about 1.5 new installation per day:

“…Solar Roof deployments almost tripling sequentially.

While not yet at scale, we recently demonstrated a ~1.5-day Solar Roof install, as shown below in the photos. For Solar Roof, installation time is a key area of focus to accelerate the growth of thisprogram. We continue to onboard hundreds of electricians and roofers to grow this business.”

Solar Roof is produced at the Gigafactory 2 in New York.

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