The venture that Tesla hopes to profit from is more than just car sales. Backup energy sources

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By robb the singh

In the future, when most electricity is produced using renewable energy sources, backup batteries will be a vital ally. Among the first businesses to place a sizeable long-term wager was Tesla, which is starting to show returns on its investment in a business Elon Musk said will be more profitable than the auto industry.

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Tesla’s car division saw a 15% increase in revenue last year, while the company’s solar and battery division, Tesla Energy, saw a 54% increase in revenue.

The data is fascinating; installations, for instance, increased by 125% yearly to 14.7 GWh.

Elon Musk expressed optimism about the future of Tesla’s energy division during the presentation of results for the last quarter of 2023. He believes the division will surpass the car division in revenue in a few years.

A market that hasn’t been fully developed, mainly about production, is done at Tesla’s Lathrop, California plant, which can produce roughly 10,000 units annually, or about 40 GWh, for residential and industrial units (Powerwall and Powerpack).

Presently, Tesla is completing the opening of a new facility in Shanghai, which will also have an annual capacity of 40 GWh and go into operation at the end of this year.

The goal is that this year, the growth rate of backup battery sales will surpass that of the car division once more, opening up a market where Tesla can capitalize on its positioning and vision for the entire future. To attain the same goal of taking over a sizable portion of the market as it did with cars.

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