Tesla's Fastest-Growing Business Isn't Cars AnymoreOr Even Robots
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Tesla's Fastest-Growing Business Isn't Cars AnymoreOr Even Robots
"And as power-hungry AI data centers strain electricity grids worldwide, Megapacks are becoming increasingly important. The massive, shipping-container-sized Megapack batteries are designed to store excess energy during off-peak hours and discharge it when demand spikes during peak hours. They are also playing a growing role in smoothing out the intermittency of renewable power, something utlities nationwide are increasingly relying on."
"Tesla said record Megapack deployments generated $1.1 billion in gross profit for its energy generation and storage business in the fourth quarter, marking a fifth consecutive record-setting quarter. The company also said more than one million installed Powerwall units are helping homeowners save roughly $1 billion annually on electricity costs. And Tesla's charging business is also increasingly tied into this energy ecosystem. Some of its newest Superchargers are backed by solar farms and Megapack batteries, including the massive Lost Hills, California site."
Tesla experienced a sharp profit decline driven by falling electric vehicle sales and costly investments in artificial intelligence and robotics. Energy storage emerged as a strong performer, with the company reporting its highest-ever quarterly stationary energy storage deployments in the fourth quarter of 2025. Megapack demand drove substantial growth by storing off-peak energy for use during peak demand and smoothing renewable intermittency. Record Megapack deployments produced $1.1 billion in gross profit for the energy generation and storage segment. More than one million Powerwall units are installed, and Supercharger sites increasingly integrate solar and Megapack systems, including an off-grid Lost Hills installation.
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