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Tesla Motors Inc (TSLA) Earned At least $12 Million Via Tesla Energy Sales In Q1

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Tesla generates $12-14 million in Tesla Energy revenue during 1QFY16 via delivering 25MWh of energy storage

Tesla Motors Inc (NASDAQ:TSLA) reported financial numbers for the first quarter of fiscal year 2016 (1QFY16), beating the consensus estimate and announcing a new production plan; though, the management’s future plans were too ambitious for Street analysts.

While everyone was focusing on the company’s automotive divisions after it generated about 400,000 Model 3 pre-orders, many probably missed out that Tesla Energy put on a great performance during the quarter. Tesla posted sales number for its battery-storage arm for the first time in 1QFY16 Shareholder Letter.

During the quarter, the automaker successfully delivered more than 2,500 home-battery systems the Powerwall and roughly 100 commercial batteries the Powerwall in four continents: North America, Europe, Asia and Africa. The total sales represented more than 25 MWh of energy storage.

Although the company did not reveal the contribution of Tesla Energy to its “Services and other” revenue stream, we can find an estimated revenue number from the product’s tag prices listed on TeslaEnergy.com.

We already know that the company has been only offering the 6.4kWh Powerwall system which is priced at $3,000. An overwhelming demand for the Powerwall version encouraged the company to solely focus on it. Thus, Tesla discontinued its 10kWh Powerwall system. With over 2,500 unit sales, it is safe to assume that Powerwall generated revenue of at least $7.5 million during 1QFY16.

Powerpack revenue computation is a bit complicated because it can be customized by customers in any way between 2 Powerpacks and 54 Powerpacks, along with bi-directional inverter and cabling and site support hardware. Here’s  the complete pricing and other details related to the commercial battery system.

Since we have no idea about the number of Powerpacks customers for those 100 units and their customized orders, we are taking into account the price of a unit which is $47,000. Excluding inverters and cabling/hardware, Tesla Energy generated $4.7 million from Powerwall sales. Including other equipments, the revenue sold increased to $6-7 million.

Thus, Tesla Energy revenue should be between $12 million to $14 million for the first quarter, which does represent strong start for the new business division. Merely four months after Tesla Energy unveiling in March 2014, the company had 100,000 reservations worth $1 billion for its battery systems.

The management expects the division’s strong momentum will “continue to build” and ensured analysts during the recent earnings call that the segment is not being constrained by Tesla’s vehicle requirement at the Gigafactory.

CEO Elon Musk sees more potential in the battery storage arm than the automotive division, as he stated: “And I think the growth rate of Tesla Energy is on a percentage basis only going to be far greater than the growth rate in cars.”

 

 

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