Tesla reported a 16% year-over-year decline in energy generation and storage revenue for Q3 2026, totaling $2.88 billion. This drop occurred despite a 10% increase in storage deployments, which reached 13.7 GWh.
The company attributed the revenue decrease partly to tariff-related customer refunds. While the exact refund amounts were not disclosed, the energy gross profit fell to $954 million compared to $1.07 billion in the same period last year.
Year-to-date, Tesla has deployed 36 GWh of storage, an 11% increase from 32.5 GWh in the same period of 2025. Total energy revenue for the year-to-date period is down 6% to $8.43 billion.
Tesla continues to expand its manufacturing capacity, with Megafactory Texas reaching a planned capacity of 50 GWh. Additional facilities include 40 GWh in California, 20 GWh in Shanghai, and 7 GWh of cell capacity in Nevada.
The company reports record-high order rates and backlogs for storage, largely driven by data center demand. Notably, xAI purchased $269 million worth of Megapacks from Tesla this year, following $430 million in purchases during 2025.
