Tesla’s Solar deployments figures were hit hard by chip shortages and import delays “beyond our control” in 2022’s first quarter.
Despite the drop in installations, CEO Elon Musk still expects positive and encouraging developments in Tesla Energy in 2022.
Tesla reported solar deployments of 48 megawatts in Q1, a 44 percent drop from Q4 2021’s 85 MW and a 48 percent drop from the same quarter last year with 92 MW. Tesla’s Energy sector has routinely delivered between 80 and 95 MW of deployment per quarter for the past year, but Q1 2022 was the division’s 27 MW deployment in Q2 2020.
“Solar deployments decreased by 48% in Q1 to 48 MW,” Tesla said in its letter. “This reduction was caused by import delays beyond our control on certain solar components. Solar Roof deployments continued to grow YoY. Cash & loan sales account for nearly all deployments.”
Reduced solar deployments across the board have been felt by energy companies everywhere. Last April, JP Morgan analysts indicated shipping for solar systems in residential settings was between 10 and 30 percent below demand levels because chip companies are unable to satisfy demand with current output levels.
Zachary Kirkhorn, who has been Tesla’s Chief Financial Officer since March 2019 and ‘Master of Coin’ since March 2021, commented on the company’s issues with solar output in Q1. Highlighting significant bottlenecks across the supply chain and a shortage of parts, Q1’s numbers really told the story. “The energy business has continued to be impacted by macro conditions, more severely than the vehicle business,” Kirkhorn said. “Our storage products, our need of chip supply and new import processes have impacted supply of certain components for our solar systems, which is reflected in our solar volume for the quarter.”
Tesla delivered a drama-free Earnings Call, a good sign for investors, especially as the tech sector has been hit by several surprises this week, namely $NFLX’s dramatic loss of subscribers. While the operating margin reached 19.2 percent, the highest so far in the company’s history, there was really no pushback or prying from analysts because the automotive division did so well in such a difficult time.
Tesla (TSLA) rises as Q1 earnings leave Wall Street analysts “speechless”
Musk offered a brief line of his expectations for the solar and battery storage sector for 2022: “We expect to address the part shortages that limited our progress with batteries and solar. So, we expect batteries and solar to also grow well this year.
Tesla will have to rely on suppliers and shipping processes to be better than in Q1. Solar components not making it to Tesla was an issue that was “beyond our control,” Tesla said, so it is not something to dial in and focus on. If it were an issue with the production of solar panels or a shortage of workers to install the systems, the Energy side of Tesla would not have a positive outlook for the rest of the year.
It sounds as if Musk is confident shipping bottlenecks will be resolved soon, and Tesla Solar will resume reporting impressive installation figures every quarter.
“And basically, the future is very exciting,” Musk’s said as his initial remarks on the call concluded. “I’ve never been more optimistic or excited about Tesla’s future than I am right now. Thank you.”
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Tesla Energy has become the undisputed dark horse of the electric vehicle maker. This was highlighted by Tesla Energy’s growing role in the company’s overall operations in the past quarters.
And as per Tesla’s year-end milestone posts on X, Tesla Energy had a blockbuster 2024.
Tesla Energy’s 2024 milestones:
- As per Tesla on its official social media account on X, the company has hit over 800,000 Powerwalls installed worldwide.
- From this number, over 100,000 Powerwall batteries have been enrolled in virtual power plant (VPP) programs.
- The Powerwall 3 has officially been launched in the United States, Canada, Puerto Rico, the U.K., Germany, Italy, Australia, and New Zealand.
- The Tesla Megapack hit over 22 GWh in operation across more than 60 countries across the globe.
- The Lathrop Megafactory, which produces the Megapack, has been ramped to 40 GWh per year.
- The Lathrop Megafactory has also produced its 10,000th Megapack battery.
- The Shanghai Megafactory was completed in just seven months, and it is ready to start Megapack production in Q1 2025.
Hit 800k Powerwalls installed worldwide
— Tesla (@Tesla) December 31, 2024
Also:
– Over 100k Powerwalls are now enrolled in VPP programs
– Launched Powerwall 3 in the US, Canada, Puerto Rico, UK, Germany, Italy, Australia & New Zealand
– Megapack hit 22+ GWh in operation across 60+ countries
– Ramped… pic.twitter.com/bE88DpeyTg
Powerwall owners’ 2024 impact:
- As per Tesla Energy, Powerwall owners generated a total of 4.5 TWh of solar energy globally in 2024. This was equivalent to powering a Model 3 for more than 17 billion miles.
- A total of 1.1 TWh of energy was stored in Powerwalls in 2024. This protected homes from over 5.8 million outages during the year.
- Tesla’s Storm Watch feature for Powerwall batteries covered 2.8 million severe weather events over the year.
- Powerwall owners saw collective savings of over $800 million on utility bills.
- Virtual Power Plants contributed over 2.2 GWh of power to the grid. This reduced the need for 2,200 metric tons of fossil fuel peaker plant emissions.
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Utah-based rPlus Energies recently held the groundbreaking ceremony for the Green River Energy Center, a 400 MW solar PV and 400 MW/1,600 MWh battery storage project in Eastern Utah. Tesla Megapacks will be used as the upcoming facility’s battery storage solution.
At 400 MW/1,600 MWh, the Green River Energy Center is expected to become one of the largest solar-plus-storage projects under development in the United States. Once operational, the facility would supply power to PacifiCorp under a power purchase agreement, as noted in a press release.
Utah Gov. Spencer Cox shared his excitement for the project during the Green River Energy Center’s groundbreaking event. As per the Utah Governor, the solar and battery storage system represents a notable step forward for the state’s sustainable energy efforts.
NEWS: rPlus Energy has just broken ground on a new $362 million @Tesla Megapack battery energy storage system in Utah.
— Sawyer Merritt (@SawyerMerritt) September 24, 2024
This 400 MW solar PV and 400 MW/1,600 MWh battery storage project is one of the largest solar-plus-storage projects under construction in the nation. The entire… pic.twitter.com/ubPOUnPWEf
“This project is being built in rural Utah, by rural Utahns, and for all of Utah. When rural Utah thrives, the entire state prospers. Today, we’re not just breaking ground—we’re building a future of affordable, abundant energy in Utah,” the official noted.
The Green River Energy Center secured over $1 billion in construction debt financing earlier this year. The facility is also expected to create about 500 jobs, many of which will be filled by local workers. With this in mind, the solar and battery farm would likely prove to be a boost to Emery County’s economy, enhancing tax revenue, strengthening public services, and offering long-term employment opportunities for the area’s residents.
Sundt Construction will serve as the project’s contractor, EliTe Solar will supply the solar modules, and Tesla will provide the battery storage system for the project. Luigi Resta, President and CEO of rPlus Energies, noted that the Green River Energy Center is special because of the entities that have worked together to make the facility a reality.
“It’s the partners that make this project special, that have made this monumental project possible. From our equipment providers to the onsite talent, and the support of the local and regional community, we owe this project’s success to each of you,” he stated.
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
Tesla Energy is losing a director who brought Autobidder, a real-time trading and control platform that provides value-based asset management and portfolio optimization, to the company.
Rohan Ma, who has been at Tesla for just under eight years, announced he would depart the company on LinkedIn, aiming to take on a new opportunity elsewhere.
Ma posted:
“After eight years at Tesla, this will be my last week. It was a ride of a lifetime! Today, Tesla Energy is thriving and I can confidently say it’s in the best position it has ever been in to drive impact toward the original mission I signed up for. I’m proud to have contributed over the years to where it is now, and will be cheering the team on from the sidelines as they carry the torch forward and continue to relentlessly solve problems at the frontier of the energy transition.”
Ma started as the Senior Manager of Energy Optimization at Tesla back in November 2016. After four-and-a-half years at the position, he then moved on to a new role as the Director of Energy and Software Optimization. He has been in that role for over three years.
The exit of Ma is the latest in Tesla’s tough year in terms of losing high-level employees.
Earlier this year, as a part of widespread layoffs, Tesla eliminated up to 20 percent of its workforce and people like Rebecca Tinucci, who was the company’s Senior Director of EV Charging.
Tesla also lost Rohan Patel, Vice President of Global Public Policy and Business Development, and Martin Viecha, who was Head of Investor Relations, are just a few notables to depart.
Autobidder
Tesla’s Autobidder platform helps owners and operators make money by autonomously monetizing battery assets. It is a real-time trading and control platform that maximizes revenue according to business objectives and risk preferences.
Tesla Megapack, Autobidder to be deployed in big battery project in Queensland
Autobidder already has hundreds of megawatt-hours under management and continues to scale. It is hosted on Tesla’s secure cloud infrastructure that is engineered to handle large and complex computations.
Without Ma’s expertise, Autobidder would likely not be involved in Tesla’s Energy division at all, and although it is not frequently discussed, it is still a major part of the business’s growth over the past several years.
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
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