AUSTIN, Texas — Tesla's fastest-growing business just had a quarter to remember. As the company closes the books on the third quarter, its energy division is on pace for a record three months of battery deployments, driven by relentless demand for the grid-scale Megapack and the Powerwall home battery.
While Wall Street spends this week fixated on car deliveries, the numbers quietly building inside Tesla Energy tell an equally important story: the unit that many investors once treated as a rounding error is now scaling like a business of its own, and it is doing so with fat margins and a multi-year backlog.
A Quarter Built on Batteries
Tesla does not report its energy figures until the full quarterly update, but the signals pointing to a record are hard to miss. The Megapack factories in Lathrop, California, and Shanghai have been running at high utilization all summer, and a third Megafactory in Texas is ramping to add tens of gigawatt-hours of annual capacity. Company executives have repeatedly described storage demand as effectively unlimited at current prices.
That momentum lands as Tesla's core vehicle business wrapped up a strong three months of its own, with showrooms across several regions selling out of inventory as the quarter closed. Together, the two businesses give Tesla two record engines heading into the October reporting window.
Megapack Leads the Way
The Megapack is the star. Each unit packs roughly 3.9 megawatt-hours of storage, and utilities are ordering them by the hundreds to firm up solar and wind and to stabilize strained grids. Tesla has guided toward continued strong growth in storage deployments this year, and the current run rate suggests the energy business is now measured in the tens of gigawatt-hours per quarter rather than single digits.
