Elon Musk Thinks Tesla Will End Up Making More Batteries For Energy Storage Than EVs: 'Demand For Stationary Batteries Is Super High'

Tesla Inc (NASDAQ:TSLA) CEO Elon Musk on Wednesday said that the demand for its stationary energy storage products is “super high” and hinted that the company might make more batteries for energy storage than cars in the long term.

What Happened: Responding to a Tesla enthusiast who opined that Tesla must advertise its large-scale energy storage system called Megapack, Musk said that production rate and cost are the key challenges with stationary batteries and not demand.

“Demand for stationary batteries is super high,” Musk said.

“I think Tesla might end up doing more total Joules in stationary than mobile long-term,” he added, hinting that the company is looking to scale its energy storage business to be significant in due time.

Why It Matters: In the first quarter of 2024, Tesla deployed 4,053 MWh of energy storage products, representing its highest quarterly deployment to date and a year-on-year increase of 4.2%. 

In January, the company expressed expectations for the growth rate of deployment and revenue in the energy storage business in 2024 to surpass that of the automotive sector.

Tesla acknowledged that deployments may be subject to volatility and impacted by logistics and global product distribution. Nevertheless, it remains optimistic about continued growth on a twelve-month basis.

Some analysts have highlighted the significant potential for Tesla in the energy and energy storage segments amidst the slowdown in EV sales. However, more pessimistic commentators have raised doubts about whether this represents genuine opportunity or merely hype.

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Photo courtesy: Tesla