TSLA · 10-Q · 2026Q2 · Full report

Energy Generation & Storage Margin Decline

Tesla, Inc. · 2026-07-23 · Importance 60 · Surprise 74

Energy generation and storage gross margin decreased from 30.3% to 20.4% in the three months ended June 30, 2026 versus the prior-year quarter. Cost of energy generation and storage revenue increased $556 million (29%) in the quarter, driven by deployment fluctuations, higher average cost per MWh from sales mix and unfavorable warranty adjustments. Revenue growth in the segment was $350 million (13%) in the quarter due to higher Megapack deployments, but margin compression reflects higher cost and warranty impacts. The decline materially reduced segment profitability despite higher deployment volumes.

Key facts