**Tesla's Energy Division Surges, Outshines Automotive Sales**

Tesla has unveiled a game-changing development that extends beyond its well-known ventures like robotaxis and humanoid robots. The company's recent earnings report highlighted a remarkable surge in its energy-generation-and-storage business, spotlighting the potential of its solar panels and advanced battery systems.

In the third quarter of 2024, Tesla's energy division generated nearly $2.4 billion in revenue, marking a 52% increase from the same period in the previous year. In comparison, the automotive sector experienced a modest 2% boost. Spearheading this growth, Tesla's energy business has surpassed $7 billion in revenue so far this year and now constitutes almost 10% of the company's total revenue.

RBC Capital Markets analyst Tom Narayan predicts that Tesla's energy segment will significantly impact the company's future valuation, potentially driving 14%, while the automotive division (excluding Full Self-Driving and robotaxis) is expected to contribute 11%. Narayan believes the energy storage sector will surpass the car business in importance.

Tesla's energy division includes the sale of solar panels alongside its Megapack and Powerwall battery systems. Despite garnering less attention than the company's futuristic projects, these offerings have quickly become an essential revenue stream. CEO Elon Musk emphasized this during the earnings call, describing the energy business as a "gigantic opportunity."

Musk noted that the energy-storage business is expanding rapidly, with strong demand for Megapack and Powerwall systems. Analyst Jacob Bourne from Emarketer attributed this growth to several factors, including extreme weather disruptions, new electrification laws, and increasing pressure on municipal energy grids. These issues are driving property owners to seek solutions like those Tesla offers.

Tesla's production capabilities are also ramping up. Its Megapack factory in Lathrop, California, recently achieved a significant milestone, producing 200 units a week. The company also installed a record number of Powerwall systems for the second consecutive quarter. Additionally, a new Megapack factory in Shanghai is slated to begin mass production in early 2025.

The Megapack, designed for commercial use, stores substantial amounts of energy to help grid providers avoid outages. Each unit can store over 3.9 megawatt-hours of energy, sufficient to power 3,600 homes for an hour, and is priced at around $1 million. The Powerwall, on the other hand, serves residential customers, allowing them to store energy generated by solar panels for home use. Tesla offers the Powerwall in packages with its solar products.

With milestones being set and new factories on the horizon, Tesla's energy business is poised for significant growth, potentially redefining the company's market position and challenging its traditional automotive focus.