Tesla's Big Battery Business

EV and Energy business integration powers a rapid surge in Tesla's grid-scale battery adoption

October 24, 2024 • Est. Reading Time: 3 minutes

Mobius Intel Brief:

While yesterday’s Q3 Tesla earnings offered an optimistic EV sales outlook for investors to digest, the data behind Tesla’s quarterly update showed why CEO Elon Musk repeatedly says, “the hottest Tesla product probably will be the battery.”

  • Key Intel: Focus on Tesla’s EV sales and you’ll likely miss the manufacturer’s emerging dominance in grid-scale power storage deployments. Total storage deployments, including residential ‘Powerwall’ and utility-scale ‘Megapack’ batteries, have grown at an average annualized rate of 97% for each quarter since 2019. Tesla’s global power storage deployments through the first three quarters of 2024 reached 20,400 MWh — roughly 21% more than the utility-scale power storage added to US grids during the first eight months of this year.

A closer look at the numbers:

An expected surge in electricity demand from industrial electrification, supercomputing, AI, and EV charging has reoriented energy investment around reliability and scale. Until the technical, regulatory, and economic limitations of nuclear and battery energy storage systems (BESS) are resolved, these priorities will likely translate into underappreciated natural gas demand growth.

However, as pointed out by Mobius VP Rishi Sahay on The Energy Desk, synergies between Tesla’s EV and energy businesses are a notable tailwind for market participants to monitor.

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