Tesla Deploys 13.7 GWh of Storage in Q3 as Energy Revenue Falls 16%

• Tesla deployed 13.7 GWh of energy storage in the third quarter of 2026, up 10% from 12.5 GWh a year earlier.
• Energy generation and storage revenue fell 16% to $2.88 billion, yet the segment's gross margin widened to 33.1% from 31.4%.
• Megafactory Texas began production with 50 GWh of annual Megapack capacity, and the first Megapacks with only Tesla-made LFP cells shipped.

Tesla Inc. deployed 13.7 gigawatt-hours of energy storage in the third quarter, up 10% from a year earlier, its Oct. 21 quarterly update showed.

Revenue from energy generation and storage fell 16% to $2.88 billion from $3.42 billion, partly because of tariff-related customer refunds, Tesla said. Segment cost of revenue fell faster, to $1.93 billion. That lifted gross margin to 33.1% from 31.4% a year earlier, list.solar calculated from Tesla's income statement.

Megafactory Texas started production in the quarter. It adds 50 GWh of annual Megapack capacity to 40 GWh in California and 20 GWh in Shanghai. Tesla cautions that installed capacity is not the same as its production rate.

The storage quarter in numbers

• 13.7 GWh deployed, against 12.5 GWh a year earlier and 13.5 GWh in the second quarter of 2026.
• $954 million of segment gross profit, down 11% from $1.07 billion a year earlier (list.solar calculation).
• 17.4% of Tesla's total gross profit came from energy, on 10.3% of its revenue (list.solar calculation).
• 50.2 GWh deployed over four quarters, less than half of the 110 GWh of installed Megapack capacity (list.solar calculation).
• 7 GWh a year of LFP cell capacity in Nevada, still in early ramp, or about 6% of Megapack capacity (list.solar calculation).
• 8.3 GW of utility-scale batteries added in the U.S. in the first half of 2026, for nearly 52 GW in total, EIA data show.

Tesla shipped its first Megapacks built only with its own lithium iron phosphate (LFP) cells, made in Nevada. Its 10-GWh cathode plant and 30-GWh lithium refinery in Texas are also in early ramp as it expands battery manufacturing.

Energy storage demand is "increasingly aligned with SI infrastructure demand," Tesla said, using its shorthand for super intelligence. Grid constraints and power availability are creating more openings for Megapack, including supplying large data center loads, it said. U.S. operators plan another 14 GW of battery storage in the second half of 2026, according to the Energy Information Administration.

Tesla, one of the top energy storage companies tracked by list.solar, gave no deployment forecast. Its outlook says deployments will depend on demand and supply chain readiness. Build-out of battery-material and solar manufacturing is under way, the company said.