Tesla's Battery Business Surges, Outpacing Electric Vehicles in 2024

• Tesla's energy-storage division is set to be the company's main growth driver, with installations doubling in 2023 and profits nearly quadrupling.

Tesla's energy-storage division, which produces utility and home batteries, is expected to be the company's main source of growth in terms of deployments and revenue in 2024. While energy-storage deployments decreased in the fourth quarter, total installations for 2023 were more than double those in 2022, and the unit's profits nearly quadrupled. Tesla installed 14.7 gigawatt-hours of battery storage in 2023, generating $1.4 billion in revenue for the fourth quarter.

Tesla is capitalizing on the demand for batteries that can support the growing amount of solar and wind power being integrated into grids. The US market for utility-scale batteries is projected to grow by 36% to over 10 gigawatts this year, with one gigawatt being sufficient to power approximately 750,000 homes. Tesla CEO Elon Musk has long predicted that the storage business would outpace the car business in terms of growth, and it appears to be fulfilling that expectation.

Will Tesla's energy-storage division be the main source of growth for the company in 2024?

• Tesla's energy-storage division is expected to be the main source of growth for the company in 2024.
• Energy-storage deployments decreased in the fourth quarter, but total installations for 2023 were more than double those in 2022.
• The unit's profits nearly quadrupled, indicating strong growth potential.
• Tesla installed 14.7 gigawatt-hours of battery storage in 2023, generating $1.4 billion in revenue for the fourth quarter.
• The demand for batteries that can support the integration of solar and wind power into grids is driving the growth of Tesla's energy-storage division.
• The US market for utility-scale batteries is projected to grow by 36% to over 10 gigawatts in 2024.
• Tesla CEO Elon Musk has consistently predicted that the storage business would surpass the car business in terms of growth, and it seems to be on track to fulfill that expectation.