Tesla Energy grew out of the 2016 acquisition of SolarCity and quickly became one of the biggest players in residential and commercial clean energy. The division sells Solar Roof tiles that replace conventional shingles, standard solar panels, and a range of battery products including the Powerwall for homes and the Megapack for grid-scale storage.
What sets Tesla Energy apart is vertical integration. The company manufactures its own solar cells at Gigafactory New York, builds battery packs at Gigafactory Nevada, and bundles everything with its own inverter and energy management software. Homeowners can monitor production and consumption in real time through the Tesla app, and the Autobidder platform lets utilities optimize energy trading across distributed battery fleets.
Megapack deployments have grown substantially, with projects like the 730 MWh Moss Landing installation in California demonstrating grid-level viability. Tesla’s Virtual Power Plant program aggregates thousands of Powerwalls into a single resource that utilities can dispatch during peak demand, reducing the need for gas peaker plants. Revenue from the energy segment topped $6 billion in 2023, and the company hasn’t slowed down — new Megafactory capacity in Shanghai and Lathrop keeps pushing production targets higher every quarter.
