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Tesla's Energy business posted an unprecedented 360% year-on-year growth in the first quarter to 3.9 GWh. This growth was made possible by the increasing production capacity of the Megafactory in Lathrop.

Tesla Energy continues to grow, as evidenced by Q1 2023 data. The last quarter was the strongest in the history of the company, which became a matter of special pride. In Q1, battery storage deployment increased 360% year-over-year to 3.9 GWh, according to the report. To be sure, much of this productivity is made possible by Tesla's Megafactory in Lathrop, California. The factory will be able to produce 40GWh of stationary batteries per year, which is equal to about 10,000 Megapacks.

“Energy storage deployments increased by 360% YoY in Q1 to 3.9 GWh, the highest level of deployments we have achieved due to ongoing Megafactory ramp. The ramp of our 40 GWh Megapack factory in Lathrop, California has been successful with still more room to reach full capacity.”

The company said the Lathrop Megafactory is one of many planned. Recently, Tesla announced the construction of another one in Shanghai, China. It will also have a capacity of 40 GWh and produce 10,000 Megapacks per year.

“This Megapack factory will be the first of many. We recently announced our second 40 GWh Megafactory, this time in Shanghai, with construction starting later this year.”

During the Q1 2023 Earnings Call, Elon Musk noted that “there's still some way to go to reach the rate of 40-gigawatt hours per year” for the Lathrop Megafactory. Recently, investment advisory firm, Halter Ferguson Financial, wanted to get a full picture of the current production capacity of the Lathrop Megafactory. To do this, they monitored the site for 144 hours (6 days), 24 hours a day. During the observation, the firm received information from a source that the factory now lacks several machines, with the help of which, production can grow at a very fast pace. The pace of production ramp-up is expected to pick up significantly in Q3 2023.

Musk stressed that Tesla's battery storage business is growing faster than the company's electric vehicle division.

“As we've expected, the stationary storage growth actually will significantly exceed the vehicle growth.

"If you just look at what's needed to transition the world to a sustainable energy economy, there is more stationary energy storage needed than there is mobile energy storage. We are seeing growth of our stationary storage well in excess of automotive, so that is in line with expectations.”

© 2023, Eva Fox | Tesmanian. All rights reserved.

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