TSLA · 10-Q · 2026Q2 · Full report

Energy Generation and Storage Margin Pressure

Tesla, Inc. · 2026-07-23 · Importance 66 · Surprise 74

Energy generation and storage revenue rose $350 million (13%) in the three months ended June 30, 2026 versus prior year due to greater Megapack deployments, but experienced a material gross margin decline. Gross margin for energy generation and storage decreased from 30.3% to 20.4% in the three months ended June 30, 2026, driven by deployment timing, lower average selling prices per unit, sales mix and unfavorable warranty adjustments. Management cautions that Megapack deployments can vary meaningfully quarter to quarter and that tariffs/OBBBA could increase battery cell expenses, amplifying margin pressure. Timeframe: three months and six months ended June 30, 2026 and ongoing deployment variability.