Last year, the company's profit fell 45% compared with 2024, driven in large part by falling sales of its electric vehicles. Investors anticipated the decline in sales, but Tesla still beat Wall Street earnings and revenue estimates thanks to its energy storage business. Big, stationary batteries like the Megapack and Powerwall, along with solar installations, now drive nearly a quarter of Tesla's gross profit. Last quarter alone, the Megapack contributed $1.1 billion of the storage business' $3.8 billion in gross profit for the entire year. Storage and energy generation revenues were up 26.5% to $12.8 billion. Large energy storage projects, like those installed for utilities or data centers, tend to be milestone-based, and revenue from the projects is recognized when certain milestones are achieved. In its 10-K filing with the SEC, Tesla said it expects to recognize $4.96 billion this year in deferred revenue from projects already underway. That's more than double what the company...
learn more
