

Energy
Renewable energy is benefitting from oil’s coronavirus-induced slump
Oil companies have arguably felt the effects of the COVID-19 pandemic worse than any other industry in the world. Several companies that are considered to be big names in the oil sector are reporting substantial drops in earnings in their most recent quarterly results as the pandemic has caused a collapse in demand.
With that, renewable energy companies, like Tesla and others, are beginning to feel the positive effects of oil becoming less desirable by consumers. The New York Times recently reported that renewable energy sources would generate a record of 20.7% electricity in the U.S., up 2.7% from 2019’s share.
As renewable energy use increases, other forms of energy will inevitably fall, and oil-focused companies are forced to adapt to the consumer’s demand for clean sources of power.
BP recently announced that it would slash oil production by 40% and turn its focus to sustainable forms of energy for the future. The company said that it would increase its low carbon investments by ten-fold to $5 billion by 2030. The London-based energy company currently holds a zero-emissions promise by 2050, CNN said.
“This coming decade is critical for the world in the fight against climate change, and to drive the necessary change in global energy systems will require action from everyone,” a company statement from BP said.
Meanwhile, Exxon and Chevron both took major hits during the second quarter. Exxon announced that several of its expansion projects would be delayed after it failed to generate any positive cash flow during Q2, Bloomberg reported.
Exxon’s Q2 2020 Earnings Report indicates that the company’s total net income loss was -$1.080 billion.
Chevron, on the other hand, announced that it would have multibillion-dollar writedowns on its access for the second time in the last 12 months. It will also cut the equivalent of 5% of its total output worldwide during Q3, and delay plans to ramp up production from its Permian Basin, a United States oil field located in Western Texas and Southeastern New Mexico.
What does all of this mean for renewables?
As the world continues to transition away from carbon-emitting fuel sources and moves toward Earth-friendly forms of power, the renewable energy sector will see growth in its consumer base and profitability. COVID-19 has done significant damage to many corporations and industries as a whole. For example, automotive sales as a whole have declined with many automakers across the world, reporting substantial drops in purchases.
Research firm IHS Markit predicts that car sales are expected to decline by at least 15.3% in the U.S. in 2020. However, sustainable transportation companies are seeing growth. Tesla is one example of that.
Tesla has beaten Wall Street’s estimates in both Q1 and Q2. The company has also managed to turn a profit in both quarters in 2020 as well. The increasingly noticeable shift in energy interest is turning toward sustainable and eco-friendly sources, which is a win for both the consumer and the Earth.
A study from Deloitte stated that in April 2019, renewable energy outpaced coal by providing 23% of U.S. power generation. Coal only provided 20% of the share. Also, renewable energy consumption by residential consumers increased by 6%, while commercial customers increased their usage by 5%.
The simple fact is, renewable energy is the future of human civilization. Fossil fuels and environmentally damaging sources of energy will continue to damage the Earth, pushing the world into the depths of climate hell, while rich oil companies continue to turn unruly profits.
But these companies are feeling the effects of a decrease in demand. The reductions seem to be acting as a wake-up call that indicates their focuses must shift. Their most recent Earnings results are indicative of a shift in what kind of energy people are more interested in, and it seems that renewables are going to be the preference for consumers moving forward.
Energy
Tesla Energy celebrates one decade of sustainability
Tesla Energy has gone far since its early days, and it is now becoming a progressively bigger part of the company.

Tesla Energy recently celebrated its 10th anniversary with a dedicated video showcasing several of its milestones over the past decade.
Tesla Energy has gone far since its early days, and it is now becoming a progressively bigger part of the company.
Tesla Energy Early Days
When Elon Musk launched Tesla Energy in 2015, he noted that the business is a fundamental transformation of how the world works. To start, Tesla Energy offered the Powerwall, a 7 kWh/10 kWh home battery system, and the Powerpack, a grid-capable 100 kWh battery block that is designed for scalability. A few days after the products’ launch, Musk noted that Tesla had received 38,000 reservations for the Powerwall and 2,500 reservations for the Powerpack.
Tesla Energy’s beginnings would herald its quiet growth, with the company later announcing products like the Solar Roof tile, which is yet to be ramped, and the successor to the Powerwall, the 13.5 kWh Powerwall 2. In recent years, Tesla Energy also launched its Powerwall 3 home battery and the massive Megapack, a 3.9 MWh monster of a battery unit that has become the backbone for energy storage systems across the globe.
Key Milestones
As noted by Tesla Energy in its recent video, it has now established facilities that allow the company to manufacture 20,000 units of the Megapack every year, which should help grow the 23 GWh worth of Megapacks that have already been deployed globally.
The Powerwall remains a desirable home battery as well, with more than 850,000 units installed worldwide. These translate to 12 GWh of residential entry storage delivered to date. Just like the Megapack, Tesla is also ramping its production of the Powerwall, allowing the division to grow even more.
Tesla Energy’s Role
While Tesla Energy does not catch as much headlines as the company’s electric vehicle businesses, its contributions to the company’s bottom line have been growing. In the first quarter of 2025 alone, Tesla Energy deployed 10.4 GWh of energy storage products. Powerwall deployments also crossed 1 GWh in one quarter for the first time. As per Tesla in its Q1 2025 Update Letter, the gross margin for the Energy division has improved sequentially as well.
Elon Musk
Tesla Energy shines with substantial YoY growth in deployments

Tesla Energy shined in what was a weak delivery report for the first quarter, as the company’s frequently-forgotten battery storage products performed extraordinarily well.
Tesla reported its Q1 production, delivery, and deployment figures for the first quarter of the year, and while many were less-than-excited about the automotive side, the Energy division performed well with 10.4 GWh of energy storage products deployed during the first quarter.
This was a 156 percent increase year-over-year and the company’s second-best quarter in terms of energy deployments to date. Only Q4 2024 was better, as 11 GWh was recorded.
Tesla Energy is frequently forgotten and not talked about enough. The company has continued to deploy massive energy storage projects across the globe, and as it recorded 31.5 GWh of deployments last year, 2025 is already looking as if it will be a record-setting year if it continues at this pace.
Tesla Megapacks to back one of Europe’s largest energy storage sites
Although Energy performed well, many investors are privy to that of the automotive division’s performance, which is where some concern lies. Tesla had a weak quarter for deliveries, missing Wall Street estimates by a considerable margin.
There are two very likely reasons as to why this happened: the first is Tesla’s switchover to the new Model Y at its production facilities across the globe. Tesla said it lost “several weeks” of production due to the updating of manufacturing lines as it rolled out a new version of its all-electric crossover.
Secondly, Tesla could be facing some pressure from pushback against the brand, which is what many analysts will say. Despite the publicity of attacks on Tesla drivers and their vehicles, as well as the company’s showrooms, it would be safe to assume that we will have a better picture painted of what the issue is in Q2 after the company reports numbers in July.
If Tesla is still struggling with lackluster delivery figures in Q2 after the Model Y is ramped and deliveries are more predictable and consistent, we could see where the argument for brand damage is legitimate. However, we are more prone to believe the Model Y, which accounts for most of Tesla’s sales, and its production ramp is likely the cause for what happened in Q1.
In what was a relatively bleak quarter, Tesla Energy still shines as the bright spot for the quarter.
Energy
Tesla lands in Texas for latest Megapack production facility

Tesla has chosen the location of its latest manufacturing project, a facility that will churn out the Megapack, a large-scale energy storage system for solar energy projects. It has chosen Waller County, Texas, as the location of the new plant, according to a Commissioners Court meeting that occurred on Wednesday, March 5.
Around midday, members of the Waller County Commissioners Court approved a tax abatement agreement that will bring Tesla to its area, along with an estimated 1,500 jobs. The plant will be located at the Empire West Industrial Park in the Brookshire part of town.
Brookshire also plans to consider a tax abatement for Tesla at its meeting next Thursday.
The project will see a one million square-foot building make way for Tesla to build Megapack battery storage units, according to Covering Katy News, which first reported on the company’s intention to build a plant for its energy product.
CEO Elon Musk confirmed on the company’s Q4 2024 Earnings Call in late January that it had officially started building its third Megapack plant, but did not disclose any location:
“So, we have our second factory, which is in Shanghai, that’s starting operation, and we’re building a third factory. So, we’re trying to ramp output of the stationary battery storage as quickly as possible.”
Tesla plans third Megafactory after breaking energy records in 2024
The Megapack has been a high-demand item as more energy storage projects have started developing. Across the globe, regions are looking for ways to avert the loss of power in the event of a natural disaster or simple power outage.
This is where Megapack comes in, as it stores energy and keeps the lights on when the main grid is unable to provide electricity.
Vince Yokom of the Waller County Economic Development Partnership, commented on Tesla’s planned Megapack facility:
“I want to thank Tesla for investing in Waller County and Brookshire. This will be a state-of-the-art manufacturing facility for their Megapack product. It is a powerful battery unit that provides energy storage and support to help stabilize the grid and prevent outages.”
Tesla has had a lease on the building where it will manufacture the Megapacks since October 2021. However, it was occupied by a third-party logistics company that handled the company’s car parts.
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