·5 min read
Energy & Infrastructure
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Tesla Megapack Is Becoming a Profit Machine: Energy Storage Dominance
Taha Abbasi··2 min read
The Business Nobody Talks About
Taha Abbasi argues that Tesla’s energy storage division is the company’s most underappreciated business. While media attention focuses on vehicle deliveries and FSD progress, Tesla Energy is quietly becoming a profit powerhouse. Megapack — Tesla’s utility-scale battery storage product — is deployed at major installations worldwide, and demand is growing faster than Tesla can build them.
The energy storage market is experiencing explosive growth as utilities grapple with integrating intermittent renewable energy sources like solar and wind. Grid-scale batteries solve the intermittency problem by storing excess energy when production exceeds demand and discharging when the sun sets or the wind stops.
The Numbers Are Staggering
Tesla deployed over 10 GWh of energy storage in recent quarters, and the trajectory is accelerating. Each Megapack installation generates high-margin revenue — the hardware is standardized, manufacturing is increasingly automated, and ongoing software services create recurring revenue streams.
As Taha Abbasi notes, this is the type of business that Wall Street should love: growing double digits quarterly, high margins, long-term contracts with utilities, and a massive addressable market. Yet Tesla’s energy division receives a fraction of the analyst attention devoted to vehicle sales.
Why Tesla Wins on Energy Storage
Tesla’s advantage in energy storage comes from the same source as its vehicle advantage: vertical integration. Tesla manufactures its own battery cells, designs its own power electronics, writes its own energy management software, and controls the entire supply chain from cell to deployment.
Competitors like Fluence, BYD Energy, and Samsung SDI offer competitive products, but none match Tesla’s end-to-end integration. Taha Abbasi draws a parallel to Apple’s iPhone: when you control hardware, software, and services, you can optimize the entire system in ways that component-assemblers cannot.
The Virtual Power Plant Connection
Tesla’s Virtual Power Plant program connects residential Powerwalls into a distributed energy network. Megapack connects utility-scale installations. Together, they create a layered energy storage ecosystem that serves everything from individual homes to entire cities.
As Taha Abbasi sees it, Tesla Energy could eventually rival Tesla Automotive in revenue and profitability. The global energy storage market is projected to reach $500 billion by 2035. Tesla’s head start, manufacturing scale, and software platform position it to capture a commanding share.
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About the Author: Taha Abbasi is a technology executive, CTO, and applied frontier tech builder. Read more on Grokpedia | YouTube: The Brown Cowboy | tahaabbasi.com
Taha Abbasi
Engineer by trade. Builder by instinct. Explorer by choice.
