According to a report by EnergyTrend, Tesla released their third-quarter earnings, revealing that their revenue from power generation and energy storage businesses surged to $1.559 billion, marking a 39.57% year-on-year increase and a 3.31% quarter-on-quarter growth. Furthermore, they achieved a remarkable 24.4% gross margin rate, which represents a notable improvement of 15.1% year-on-year and 6.0% quarter-on-quarter. Over the past three quarters, their revenue from power generation and energy storage businesses has amounted to $4.597 billion, indicating a significant 76.88% year-on-year increase, while their gross margin rate stood at 18.0%, reflecting a 13% year-on-year increase. Tesla’s reported earnings for the third quarter also unveiled that their total revenue reached $23.4 billion, demonstrating a 9% year-on-year increase.
In Q3, Tesla successfully developed approximately 4 gigawatt-hours (GWh) of energy storage products. According to the information available on Tesla’s website, their Megapack production facility in California is scaling up its capacity to 40 GWh. As a result, Tesla’s planned installed energy storage capacity has witnessed substantial growth both year-on-year and quarter-on-quarter.
During the first three quarters of 2023, Tesla’s total planned installed energy storage capacity reached 11.52 GWh, marking a remarkable 182.47% year-on-year increase. In Q3 of 2023, their planned installed capacity reached 3.98 GWh, with an impressive 89.52% year-on-year increase and an additional 8.95% quarter-on-quarter boost.
The global energy storage sector is experiencing rapid growth, and Tesla is actively participating by deploying 4 GWh of related products in Q3. Moreover, their other energy storage ventures have been expanding at a brisk pace, with a record-breaking deployment in this field for a single quarter.

Based on the data from their reported earnings, it’s evident that Tesla’s energy storage capacity and deployment are on a robust upward trajectory in 2023. In Q3 of 2023, their energy storage business achieved a remarkable profit margin of 24%, underscoring the outstanding performance of this segment. Consequently, energy storage is gradually emerging as Tesla’s most profitable business, and it’s noteworthy that this quarter marks the first time that Tesla’s energy business gross profit margin has surpassed that of its vehicle business.
Energy storage appears poised to become a significant growth driver for Tesla.
In the latest installment of its Master Plan, Tesla has redirected its focus towards sustainable energy. The ultimate objective is to achieve 100% sustainable energy utilization by 2050. According to Elon Musk, reaching this milestone necessitates the installation of 240 terawatt-hours (TWh) of energy storage capacity, encompassing power station energy storage and car batteries. Tesla's Megafactory for energy storage plays a pivotal role in realizing this ambitious target.
On April 9th this year, Tesla’s Megafactory was officially established in Lingang, Shanghai province, boasting an initial annual production capacity of 10,000 commercial energy storage batteries. This capacity surpasses that of its California facility. Notably, the product range caters to the global market. The Shanghai Megafactory represents a strategic move by Tesla to address the challenge of energy storage capacity. Leveraging its well-established supply chain, it can elevate installed capacity while driving down costs, facilitating the rapid expansion of the global energy storage market with a compelling cost advantage.