TSLA · 10-Q · 2026Q1 · Full report

Energy Generation and Storage

Tesla, Inc. · 2026-04-23 · Importance 74 · Surprise 58 · No source text

Tesla deployed 8.8 GWh of energy storage products through the first quarter of 2026 and is ramping Megafactories in Shanghai, Lathrop (CA) and building a new Megafactory near Houston, Texas. Energy generation and storage segment revenue for Q1 2026 was $2,408 million, down $322 million (12%) versus the prior-year quarter, primarily due to decreases in Megapack and Powerwall deployments. Cost of energy generation and storage revenue declined $489 million (25%), driven by lower materials costs and one-time tariff-related benefits, contributing to an increase in the segment gross margin from 28.8% to 39.5% year over year. The company highlights the variability of Megapack deployments quarter to quarter due to project milestone timing and logistics, which affects revenue comparability.

Key facts

• Gross margin for the energy generation and storage segment increased to 39.5% in the three months ended March 31, 2026 from 28.8% in the prior year period. source
• Energy generation and storage segment revenue for the three months ended March 31, 2026 was $2,408 million, a decrease of $322 million, or 12%, compared to the prior year period. source
• Cost of energy generation and storage revenue decreased $489 million, or 25%, in the three months ended March 31, 2026 compared to the prior year period, primarily due to decreases in average cost per unit for Megapack and Powerwall driven by lower materials costs and one-time benefits related to tariffs. source

Impact estimates