Tesla Blames Solar’s Plunge on Interest Rates as Energy Storage Sector Blows Up

[ad_1]

Image Credits: Stefani Reynolds/Getty Images

Tesla’s solar installations are still slipping, the company told investors on Wednesday.

The automaker reported 66 megawatts of solar deployments in its second quarter of 2023, which is down 1 MW from the first quarter and down 40 MW from the second quarter of 2022. In other words, Tesla’s solar installations fell about 37%. from Q2 2022 to Q2 2023.

Tesla said the year-over-year decline was primarily due to a high interest rate environment that is causing solar purchases to be postponed industry-wide. Enterprise energy deployments, however, are another story.

Compared to the same period last year, Tesla said it increased its energy storage facilities by 222% to 3.7 GWh. It’s not quite as steep a jump as seen in Q1, when deployments increased by 360%. However, the companies’ energy storage business still appears to be booming. Tesla said the second quarter results were partly due to the ongoing ramp up of our first dedicated Megapack factory (Megafactory) in Lathrop, California.

Second-quarter revenue from Tesla’s energy business approached a record the company broke in the first quarter. The company reported about $1.51 billion in second-quarter revenue through its energy division, down slightly from about $1.52 in the first quarter of 2023 and up substantially from the $866 million that the company reported. company declared for the second quarter of 2022.

[ad_2]