Tesla’s Energy’s deployed capacity grew 84% year-over-year, reaching 43.5 GWh over the past 12 months. In the third quarter of 2025, the company deployed a record 12.5 GWh, surpassing the 11.4 GWh achieved in the fourth quarter of 2024.
Through the first three quarters of 2025, Tesla deployed 32.5 GWh—already exceeding its total 2024 figure of 31.4 GWh.
The company reported $3.41 billion in revenue under its energy storage and generation segment, compared with $2.32 billion in costs, resulting in a 31.4% profit margin. That margin is nearly double Tesla’s non-energy generation profit margin of 16.1%.
This continues a trend reported earlier this year, when Tesla Energy became the company’s most profitable division, contributing nearly a quarter of Tesla’s total profit while representing just 13% of revenue.
Tesla also announced that its new “Megablock” product will be manufactured at a facility now under construction in Houston, beginning in 2026, with a planned annual capacity of 50 GWh. Combined with the 40 GWh facilities in Lathrop, California, and Shanghai, and the original Nevada site producing roughly 3 GWh annually, Tesla’s total grid storage manufacturing capacity will reach about 133 GWh per year once Houston comes online.
During the third-quarter earnings call, Chief Financial Officer Vaibhav Taneja said, “As the ramp of Megafactory Shanghai is happening, this is helping us avoid tariffs because we are using this factory to supply the non-U.S. demand.”
Tesla is also nearing completion of a 10 GWh cell manufacturing facility in Nevada, which will supply its nearby Megapack factory.
The company broke through the 40 GWh threshold for the first time, reaching 43.5 GWh of deployed and recorded capacity over the rolling 12-month period. With a current total manufacturing capacity of about 83 GWh per year, Tesla’s factories are now operating at roughly half of their designed output.
The true utilization rate is likely higher, as a significant volume of batteries produced over the past year has not been recognized in financial reporting. Independent analysis of Tesla’s unreported shipments could shed light on its actual production activity.
For the first time in several quarters, Tesla also discussed its solar business, announcing plans to resume solar panel production at its long-dormant Buffalo facility in the first quarter of 2026.
Tesla Energy’s largest market remains the United States, where year-end, tax-driven deployment surges are expected. With storage demand still climbing and vehicle sales expected to slow in the fourth quarter due to a Q3 tax credit runup, the company’s energy division appears poised for a breakout quarter. Revenue and profit are expected to rise sharply, both in absolute terms and as a share of Tesla’s overall business.
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