Tesla’s Q2 performance has left Wall Street analysts scrambling to reassess their projections. Morgan Stanley’s Adam Jonas, in his latest note on Tesla, declared it the “First Positive Surprise of the Year,” highlighting the company’s unexpected surge in energy storage deployments.
While Tesla’s vehicle deliveries beat expectations with 443,956 units, it was the energy division that truly stole the show. Tesla reported a mind-boggling 9.4 GWh of energy deployments in Q2, nearly doubling Jonas’ forecast and setting an all-time record high.
This astronomical growth in Tesla Energy’s performance isn’t just a flash in the pan. Compared to Q1, energy storage deployments skyrocketed by 132%, and year-over-year, the increase stands at a staggering 157%.
Jonas didn’t mince words when explaining the significance of this development. “As Gen AI acceleration spurs a multigenerational increase in energy demand, electricity generation, and data center investment, we believe investors will begin to pay more attention to Tesla Energy,” he stated.
This surge in AI-driven energy demand could be the catalyst that propels Tesla Energy from a sideshow to a main event in the company’s portfolio. With the Lathrop 
factory nearing full operational capacity and a new 40 GWh facility in Shanghai on the horizon, Tesla seems poised to ride the wave of this energy revolution.
It’s remarkable how quickly the narrative around Tesla has shifted. Jonas noted, “Little more than 2 weeks ago our clients were preparing for shareholders to reject Elon Musk’s 2018 comp package; Fast forward to today, we’re getting asked for our proprietary Tesla Energy model and even our Humanoid robot TAM model.”
This pivot in investor interest underscores the potential game-changing nature of Tesla’s energy business. As the company continues to push the boundaries of energy storage and deployment, it’s clear that Tesla Energy is just getting started on its journey to reshape the global energy landscape.