Tesla Celebrates 1 Million Powerwall Milestone: Could Energy Segment Be Undervalued?
Tesla Inc celebrated the production of its one-millionth Powerwall, highlighting significant growth in its Energy segment, which saw a 67% revenue increase year-over-year to $2.73 billion in Q1. The Powerwall has been crucial for virtual power plants and energy independence. Despite challenges in its vehicle segment, Tesla's Energy division continues to thrive, with energy storage deployed up 154% year-over-year. Tesla stock rose 0.5% to $344.27, though it remains down 7.9% year-to-date.
Tesla Inc TSLA celebrated its one-millionth Powerwall produced this week.
The milestone comes as Tesla's Energy segment has shown high year-over-year growth and could be one of the electric vehicle company’s underappreciated and undervalued segments.
What Happened: Tesla introduced the Powerwall around 10 years ago, and it has played a critical role in creating virtual power plants, giving consumers backup energy options, and helping spur solar roof growth.
This week, Tesla acknowledged the production of its one-millionth Powerwall as the company continues to ramp up production of the newer Powerwall 3 version of the popular energy device.
"Congratulations Tesla Nevada team on building our 1,000,000th Powerwall powering American homes, boosting energy independence, and strengthening U.S. manufacturing," Tesla Energy tweeted.
In June 2023, Tesla installed its 500,000th Powerwall.
The company said last year it met milestones of 1,000 Powerwalls produced in a day and that it was on pace to produce 700,000 per year.
Why It's Important: The Tesla Energy segment had revenue of $2.73 billion in the first quarter, up 67% year-over-year.
The growth comes as Powerewall production and demand have picked up.
Tesla has also reported higher quarterly energy production. In 2024, overall energy production was 31.4 GWh, up more than 100% from the 14.72 GWh in 2023.
By quarter, these were the energy storage deployed for Tesla in 2024 and the first quarter of 2025:
- Q1 2024: 4.1 GWh
- Q2 2024: 9.4 GWh
- Q3 2024: 6.9 GWh
- Q4 2024: 11.0 GWh
- Q1 2025: 10.4 GWh
The most recent first quarter saw energy storage deployed up 154% year-over-year.
While Tesla is best known for its electric vehicles, that segment has come under pressure with delivery declines and lower demand for some models.
Tesla's Energy division has shown consistent growth and has high margins, which could help offset vehicle weakness and be among the key catalysts to power Tesla into the next phase of growth.
TSLA Price Action: Tesla stock was up 0.5% to $344.27 on Tuesday, compared to a 52-week trading range of $167.42 to $488.54. However, it is down 7.9% year-to-date in 2025.
