Tesla’s energy storage business is booming, and it is just beginning. However, the beginning of Tesla’s energy storage growth also appears to be the end of Tesla’s solar business.
Don’t get fooled by the fact that Tesla’s energy storage deployment was down sequentially from 9.4 to 6.9 GWh.
Sequentially, Tesla’s deployment might look bad because it is working on giant battery projects. If a few of them get delayed for reasons that are often out of Tesla’s control, it can’t account for the deployment even though it might have delivered the Megapacks.
It’s better to look at the year-over-year growth, which was at 75% last quarter.
It’s also only the beginning of Tesla’s growth in energy storage deployment. This week, Tesla disclosed that its Lathrop Megafactory is now producing Megapacks at its full planned capacity of 40 GWh per year.
Megapack alone could contribute 10 GWh of deployment per quarter. …