Tesla Energy is becoming the company’s highest margin business: Elon Musk

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Tesla Energy turned out to be the dark horse of the company’s third-quarter results. CEO Elon Musk even noted during the Q3 2023 earnings call that Tesla’s battery storage business is becoming one of the company’s most profitable divisions. 

The Q3 2023 Update Letter revealed that Tesla’s battery storage deployments increased by 90% year-over-year to 4.0 GWh. This represented the highest quarterly deployment of battery storage systems to date. Tesla noted that this growth was made possible in no small part due to the ramp of the Megafactory in Lathrop, California. The facility produces the Megapack battery.

This milestone was reiterated by Musk during the Q3 2023 earnings call. During his opening remarks, the CEO specifically pointed out that Tesla Energy is a part of the company’s business that is steadily showing more and more strength — so much so that it is becoming Tesla’s highest-margin business. 

“Regarding energy storage, we deployed 4 GWh of energy storage products in Q3. And as this business grows, the Energy division is becoming our highest-margin business. Energy and service now contribute over half a billion to quarterly profit,” Musk said. 

While Musk has shown a tendency to become overly optimistic about initiatives like Full Self Driving and Autopilot, his comments about Tesla Energy becoming a high-margin business make perfect sense. Tesla’s Energy Storage devices, after all, are far simpler to design and produce than the company’s electric vehicles. Thus, they are likely easier to ramp. 

Tesla CFO Vaibhav Taneja provided additional insights about the growth of Tesla Energy during the third quarter. He mentioned that the business’ growth is largely due to the Megapack’s ramp. Such statements make sense considering the constant stream of Megapacks being spotted during drone flyovers of the Lathrop Megafactory. 

“Our other businesses are becoming more prominent on a stand-alone basis, with the Energy business leading the charge primarily from the growth in Megapack deployments. Our services and other businesses, on a year-on-year basis, also continued to show positive momentum as we benefit from our growing fleet,” Taneja said. 

Check out our coverage of Tesla’s Q3 2023 Update Letter here. 

Check out our Live Blog, which contains our live coverage of the event, here. 

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 becoming the company’s highest margin business: Elon Musk

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Tesla app tests filtering, destination chargers and more in Canada

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Tesla’s latest mobile app update added a handful of useful test features in Canada, notably including the ability to filter charging points by amenities, the addition of Destination Chargers and more.

The Tesla mobile app update version 4.26 began rolling out this week, including the addition of Recent Trips in the navigation tab and changes to the user interface for the Trip Planner. Not a Tesla App also spotted on Tuesday that Tesla is testing features in Canada with the mobile app update such as filtering and the addition of Destination Charging, though it appears to be only available in Canada at this point.

Those using the app in Canada will now be able to see Destination Chargers on the app along with Tesla’s Superchargers. They’ll also be able to see several different amenity filters, letting you search for charging stations that include restrooms, restaurants, shopping, Wi-Fi, lodging, cafes, 24-hour operation, or any combination of those.

Along with the inclusion of amenities, the filtering options include the ability to search for chargers by power level, charging type, distance, or charger availability. You can see screenshots from the Tesla app update below including the filter options and Supercharger availability.

Credit: Not a Tesla App

Credit: Not a Tesla App

Tesla regularly tests certain features in specific markets before releasing them to the broader community, and Not a Tesla App says this is likely what’s going on with the filtering update.

In time, the improvements should make navigation even easier for drivers, and it should continue to make third-party charging platforms like Electrify America, ChargePoint, and PlugShare less necessary that offer information like availability, charger reviews and more.

Tesla has also recently added the ability to monitor home energy controls from the mobile app, letting users manage their Wall Connector from a smartphone while setting charging schedules and more.

All Tesla rentals from Hertz now allow mobile app access

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.

Tesla app tests filtering, destination chargers and more in Canada

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Tesla Model 3 Highland now available in the UK with lower starting price

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When the upgraded Tesla Model 3 was initially released, the vehicle was offered to most of Europe. The vehicle was unavailable only in select countries in the region, and the UK was one of them. This changed today, as the upgraded Tesla Model 3 is now available in Great Britain. 

This could be seen in the Tesla Model 3’s order page for Great Britain, which now shows the upgraded “Highland” model. Similar to other countries where the upgraded Model 3 is available, two variants are offered for the all-electric sedan: the base Rear Wheel Drive (RWD) and the midrange Dual Motor All Wheel Drive (AWD). 

Interestingly enough, the Model 3 Highland RWD is listed with a starting price of £39,990 in the UK, while the Dual Motor AWD variant starts at £49,990 before options. As noted in a Top Gear UK report, the Model 3 RWD started at £42,990 in September. This means that the upgraded all-electric sedan is not just better; it is also more affordable. 

Credit: Tesla

A look at Tesla’s order page for the upgraded Model 3 in the UK shows an estimated delivery date of January to February 2024. This is true for both the Model 3 RWD and the Model 3 Dual Motor AWD. 

There’s much excitement surrounding the upgraded Tesla Model 3. The vehicle is completely revamped, with a more aggressive and sporty exterior and an interior that draws heavily from the flagship Model S and Model X. Early reviews of the upgraded Tesla Model 3 have been positive, with many praising the vehicle’s increased comfort and new features like its rear touch screen. 

With a very reasonable price in the UK, the upgraded Model 3 could become a strong seller in the country. After all, the previous generation Model 3 was already very successful, usually ranking second only to its sibling — the Tesla Model Y — in the UK’s EV rankings. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Tesla Model 3 Highland now available in the UK with lower starting price

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