Tesla Energy Unit Shows Growth in Q3, Revenue Falls Short of Expectations

Tesla reported revenue of $21.45 billion in the third quarter, marking a new record, which, however, still missed analysts expectations. Shares fell by about 5% after hours following the results.

Tesla’s net income for the third quarter was $3.3 billion, nearly double the $1.62 billion it earned in the same period last year. The company attributed low profit to the increase in raw material costs as well as issues ramping up production at its Germany and Texas factories. Tesla also cited a strengthening dollar as another factor in its third quarter results.

Automotive continued to be the largest piece of Tesla's business with revenue from that division coming in at $18.69 billion in the third quarter, a 55% pop from the same year-ago period.

At the same time, the energy unit, which has lagged in previous quarters, saw an appreciable increase in business. The firm called this “by far the highest level [of growth] we have ever achieved.”

Tesla reported that energy storage deployments, that include both Powerwall home batteries and utility-scale Megapacks, shot up 62% year over year, from roughly 1.29 GWh in Q3 2021 to 2.1 GWh in the same quarter this year.