Tesla battery deployment up 157%; Megapack pricing down 44%


From pv magazine USA

Tesla set a company record by deploying 9.4 GWh of energy storage in the second quarter of 2024, more than doubling its largest previous quarterly deployment. The 9.4 GWh value was 131% greater than the previous quarter, and 157% greater than the volume deployed in Q2’2023.

The company’s energy storage deployment in first two quarters of 2024 is equal to just over 91% of the entirety of the capacity deployed in 2023 – with the second quarter alone equal to almost 64% of 2023’s total deployment capacity.

The announcement was made in an unconventional section of Tesla’s end-of-quarter press release, which typically focuses on the number of vehicles manufactured. This quarter’s release highlighted the company’s significant strides in energy storage, showing its increasing importance to the bottom line.

From 2016 through the first quarter of 2024, Tesla’s energy business consistently contributed less than 10% to total revenue. The only exceptions were in 2017, where contributions peaked at 9.49%, and in the first quarter of 2024, at 9.41%, with all other periods seeing contributions remain below 7.25%.

Based on estimates derived from vehicles sold and the substantial projected increase in energy storage revenue, we anticipate that energy revenue will account for 15% to 21% of Tesla’s overall revenue in upcoming periods, likely leaning towards the upper end of this range.

The capacity increase follows the initiation of operations at Tesla’s Megapack assembly facilities in California, in 2022, and in Shanghai, announced in 2023. Each facility is capable of delivering up to 40 GWh of Megapacks annually.

Unlike its regular updates on vehicle production, Tesla does not disclose the volume of energy storage products manufactured each quarter. Instead, it reports on the revenue from products it can recognise, which coincides with when the battery packs are activated. It is likely that several tens of GWh of capacity have been manufactured and delivered but remain unrecognised due to accounting practices.

In addition to its operational achievements, Tesla has in the United States relaunched its online energy storage pricing tool, now featuring significantly lower prices.

The company’s pricing for a 1.9 MW/3.9 MWh Megapack is currently listed at USD 1,039,290 ($1,542,929), which equates to $266/kWh ($394.9/kWh). This price does not include installation or delivery.

In April 2023, the price of the same hardware was USD 1,879,840 ($2,790,810), at a rate of USD 482/kWh ($715/kWh). The price has decreased approximately 44% during the 14-month period.

This price reduction aligns with a general market trend that has seen energy storage cell costs in China drop from between $163/kWh and $193/kWh to near $75/kWh.

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