Tesla still makes most of its money from cars, but its latest quarter showed where the momentum is shifting.
Automotive Revenue reached $20.5B, remaining around the peaks first reached in 2022. Energy Generation and Storage climbed to $3.1B, while Services and Other hit a record $4.6B, up 50% year over year.
The drivers are becoming clearer:
- More used vehicle sales, repairs, parts and paid Supercharging
- 13.5 GWh of storage deployments, Tesla’s second-highest quarter
- Growing installed fleet that generates revenue beyond initial vehicle sale
On the July earnings call, Elon Musk described energy as crucial to the AI data-centre buildout and said Megapack 3 production would begin soon.
Investors remained cautious. Revenue beat expectations, but earnings missed and free cash flow turned negative as Tesla accelerated spending on factories, autonomy, robotics and AI infrastructure.
Tesla’s smaller engines are accelerating. The question is whether they can become large and profitable enough to reduce its dependence on automotive growth.
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