Production at the Shanghai megafactory, the company's first factory dedicated to the production of energy storage products outside the U.S., started in February. Currently, Tesla has only one other factory dedicated to manufacturing megapacks, located in Lathrop, California. The Lathrop facility has the capability of producing 40 GWh of energy storage products every year.

Why It Matters: Tesla reported revenue of over $3 billion from its energy generation and storage segment in the fourth quarter of 2024, or more than double the $1.44 billion reported in the corresponding quarter of 2023, upon deploying a record 11.0 GWh of energy storage products.

Revenue from the energy segment accounted for about 12% of the company's total revenue in the quarter, while the automotive segment accounted for 77%. The company reported quarterly total revenue of $25.71 billion, missing a street consensus estimate of $27.26 billion, owing to an 8% drop in automotive revenue.

Tesla continues to be hopeful for its energy segment for it said in January that it expects energy storage deployment to grow at least 50% year-over-year in 2025. Both the powerwall and megapack continue to be supply-constrained as it opens to new markets, the company added.