Tesla, the American automaker, has said it intends to make affordable electric vehicles (EVs) a primary focus of its business after the stagnant growth in 2024. But there is significant growth in its energy storage business.
It said it will deliver a new line of vehicles using existing manufacturing lines.
However, this could be hampered by the plans to roll back federal support for EVs by the new Trump administration, which has made CEO Elon Musk a key adviser.
President Trump has indicated he would remove a $7,500 tax credit for consumers who purchase an EV.
S&P Global commodity analysts said in a report: “Removing this tax credit would further the cost parity between EVs and internal combustion engine cars, making electric vehicles less attainable to lower-income households.”
Energy Storage
Tesla continues to see significant growth in the energy storage side of its business. It deployed 11GWh in the fourth quarter of 2024. For the overall year, 31.4GWh was deployed, roughly double from the year before.
Tesla said its energy business went to “highest-ever gross profit generation” in its shareholder presentation in January.
Its energy generation and storage revenues for the full year was $10.1 billion. This represents a 67% increase from the year before. In 2020, it made around $2 billion.
However, there was no discussion as per potential changes to tax credits under the new elected Congress by executives.
Vaibhav Taneja, Tesla CFO, said on the call that the indication is 2025 will be a strong year for the energy side of the business.
He said: “While quarterly deployments will likely continue to fluctuate sequentially, we expect at least 50% growth in deployments year over year in 2025.”
