Tesla Energy’s 13.7 GWh Quarter: More Batteries, Less Revenue

Tesla’s energy division shipped 13.7 GWh of storage systems in the third quarter of 2026, a 10% increase compared with the previous quarter, yet revenue fell 16% to $2.88 billion. The company cited tariff-related customer refunds as a contributing factor in its investor letter, offering no detail on amounts or recipients.

Gross profit for the energy segment reached $954 million, down from $1.07 billion in the same period a year earlier. Gross margin recovered to 33.1% after a weaker second quarter, though overall cash flow contracted. Electrek has suggested the refunds represent compensation paid to buyers following a U.S. Supreme Court ruling that voided certain tariffs those customers had already paid — a scenario Tesla neither confirmed nor detailed.

Actual shipments came in below analyst expectations of roughly 15.9 GWh for the period. Demand from the data-center sector nonetheless held firm: AI startup xAI purchased an additional $269 million in Megapack systems during the year.

To limit tariff exposure, Tesla is accelerating domestic manufacturing. The company began delivering Megapack units equipped with its own LFP cells from its Nevada plant and has commenced production at a Texas megafactory with 50 GWh of capacity.

Source: Electrek