Even Tesla’s power storage enterprise, which has been a small, but notable vibrant spot, can’t escape the cloud that’s hanging over the corporate.
For the second consecutive quarter, deployments of its Powerwall and Megapack stationary storage merchandise have declined, in keeping with stats launched by Tesla. Within the second quarter of this yr, the corporate put in 9.6 gigawatt-hours of storage, down 0.8 gigawatt-hours from the primary quarter.
Tesla’s power storage division peaked within the fourth quarter of 2024, a three-month interval that noticed 11 gigawatt-hours deployed. In all, Tesla deployed 31.4 GWh of power storage merchandise in 2024.
Till this yr, the sector has been a vibrant spot for Tesla, posting constant year-over-year progress. Income from power storage and photo voltaic installations grew from $2 billion in 2020 to $10.1 billion final yr. Tesla’s poor begin to the yr means that streak is about to return to an finish.
Against this, the broader marketplace for power storage has been rising lately. Analysts at Wooden Mackenzie stated new installations hit a document excessive in Q1, the newest interval for which information is offered, rising by 57% year-over-year.
Such progress is unlikely to proceed, although, as tariffs on Chinese language-made items coincide with the ill-effects of a Trump-backed reconciliation invoice at the moment being hashed out in Congress. There, Republicans have been working to get rid of key components of the Inflation Discount Act.
Whereas battery storage installations may proceed to obtain tax credit below the invoice, new restrictions over components or supplies sourced from international entities of concern (FEOC) might make any remaining tax credit practically unattainable to assert. The overwhelming majority of minerals utilized in batteries are refined or processed in China.
