Tesla’s Solar deployments figures were hit hard by chip shortages and import delays “beyond our control” in 2022’s first quarter.
Despite the drop in installations, CEO Elon Musk still expects positive and encouraging developments in Tesla Energy in 2022.
Tesla reported solar deployments of 48 megawatts in Q1, a 44 percent drop from Q4 2021’s 85 MW and a 48 percent drop from the same quarter last year with 92 MW. Tesla’s Energy sector has routinely delivered between 80 and 95 MW of deployment per quarter for the past year, but Q1 2022 was the division’s 27 MW deployment in Q2 2020.
“Solar deployments decreased by 48% in Q1 to 48 MW,” Tesla said in its letter. “This reduction was caused by import delays beyond our control on certain solar components. Solar Roof deployments continued to grow YoY. Cash & loan sales account for nearly all deployments.”
Reduced solar deployments across the board have been felt by energy companies everywhere. Last April, JP Morgan analysts indicated shipping for solar systems in residential settings was between 10 and 30 percent below demand levels because chip companies are unable to satisfy demand with current output levels.
Zachary Kirkhorn, who has been Tesla’s Chief Financial Officer since March 2019 and ‘Master of Coin’ since March 2021, commented on the company’s issues with solar output in Q1. Highlighting significant bottlenecks across the supply chain and a shortage of parts, Q1’s numbers really told the story. “The energy business has continued to be impacted by macro conditions, more severely than the vehicle business,” Kirkhorn said. “Our storage products, our need of chip supply and new import processes have impacted supply of certain components for our solar systems, which is reflected in our solar volume for the quarter.”
Tesla delivered a drama-free Earnings Call, a good sign for investors, especially as the tech sector has been hit by several surprises this week, namely $NFLX’s dramatic loss of subscribers. While the operating margin reached 19.2 percent, the highest so far in the company’s history, there was really no pushback or prying from analysts because the automotive division did so well in such a difficult time.
Tesla (TSLA) rises as Q1 earnings leave Wall Street analysts “speechless”
Musk offered a brief line of his expectations for the solar and battery storage sector for 2022: “We expect to address the part shortages that limited our progress with batteries and solar. So, we expect batteries and solar to also grow well this year.
Tesla will have to rely on suppliers and shipping processes to be better than in Q1. Solar components not making it to Tesla was an issue that was “beyond our control,” Tesla said, so it is not something to dial in and focus on. If it were an issue with the production of solar panels or a shortage of workers to install the systems, the Energy side of Tesla would not have a positive outlook for the rest of the year.
It sounds as if Musk is confident shipping bottlenecks will be resolved soon, and Tesla Solar will resume reporting impressive installation figures every quarter.
“And basically, the future is very exciting,” Musk’s said as his initial remarks on the call concluded. “I’ve never been more optimistic or excited about Tesla’s future than I am right now. Thank you.”
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Energy
Tesla Powerwall distribution expands in Australia
Inventory is expected to arrive in late February and official sales are expected to start mid-March 2026.
Supply Partners Group has secured a distribution agreement for the Tesla Powerwall in Australia, with inventory expected to arrive in late February and official sales beginning in mid-March 2026.
Under the new agreement, Supply Partners will distribute Tesla Powerwall units and related accessories across its national footprint, as noted in an ecogeneration report. The company said the addition strengthens its position as a distributor focused on premium, established brands.
“We are proud to officially welcome Tesla Powerwall into the Supply Partners portfolio,” Lliam Ricketts, Co-Founder and Director of Innovation at Supply Partners Group, stated.
“Tesla sets a high bar, and we’ve worked hard to earn the opportunity to represent a brand that customers actively ask for. This partnership reflects the strength of our logistics, technical services and customer experience, and it’s a win for installers who want premium options they can trust.”
Supply Partners noted that initial Tesla Powerwall stock will be warehoused locally before full commercial rollout in March. The distributor stated that the timing aligns with renewed growth momentum for the Powerwall, supported by competitive installer pricing, consumer rebates, and continued product and software updates.
“Powerwall is already a category-defining product, and what’s ahead makes it even more compelling,” Ricketts stated. “As pricing sharpens and capability expands, we see a clear runway for installers to confidently spec Powerwall for premium residential installs, backed by Supply Partners’ national distribution footprint and service model.”
Supply Partners noted that a joint go-to-market launch is planned, including Tesla-led training for its sales and technical teams to support installers during the home battery system’s domestic rollout.
Energy
Tesla Megapack Megafactory in Texas advances with major property sale
Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet.
Tesla’s planned Megapack factory in Brookshire, Texas has taken a significant step forward, as two massive industrial buildings fully leased to the company were sold to an institutional investor.
In a press release, Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet. The properties are 100% leased to Tesla under a long-term agreement and were acquired by BGO on behalf of an institutional investor.
The two facilities, located at 100 Empire Boulevard in Brookshire, Texas, will serve as Tesla’s new Megafactory dedicated to manufacturing Megapack battery systems.
According to local filings previously reported, Tesla plans to invest nearly $200 million into the site. The investment includes approximately $44 million in facility upgrades such as electrical, utility, and HVAC improvements, along with roughly $150 million in manufacturing equipment.
Building 9, spanning roughly 1 million square feet, will function as the primary manufacturing floor where Megapacks are assembled. Building 10, covering approximately 600,000 square feet, will be dedicated to warehousing and logistics operations, supporting storage and distribution of completed battery systems.
Waller County Commissioners have approved a 10-year tax abatement agreement with Tesla, offering up to a 60% property-tax reduction if the company meets hiring and investment targets. Tesla has committed to employing at least 375 people by the end of 2026, increasing to 1,500 by the end of 2028, as noted in an Austin County News Online report.
The Brookshire Megafactory will complement Tesla’s Lathrop Megafactory in California and expand U.S. production capacity for the utility-scale energy storage unit. Megapacks are designed to support grid stabilization and renewable-energy integration, a segment that has become one of Tesla’s fastest-growing businesses.
Energy
Tesla meets Giga New York’s Buffalo job target amid political pressures
Giga New York reported more than 3,460 statewide jobs at the end of 2025, meeting the benchmark tied to its dollar-a-year lease.
Tesla has surpassed its job commitments at Giga New York in Buffalo, easing pressure from lawmakers who threatened the company with fines, subsidy clawbacks, and dealership license revocations last year.
The company reported more than 3,460 statewide jobs at the end of 2025, meeting the benchmark tied to its dollar-a-year lease at the state-built facility.
As per an employment report reviewed by local media, Tesla employed 2,399 full-time workers at Gigafactory New York and 1,060 additional employees across the state at the end of 2025. Part-time roles pushed the total headcount of Tesla’s New York staff above the 3,460-job target.
The gains stemmed in part from a new Long Island service center, a Buffalo warehouse, and additional showrooms in White Plains and Staten Island. Tesla also said it has invested $350 million in supercomputing infrastructure at the site and has begun manufacturing solar panels.
Empire State Development CEO Hope Knight said the agency was “very happy” with Giga New York’s progress, as noted in a WXXI report. The current lease runs through 2029, and negotiations over updated terms have included potential adjustments to job requirements and future rent payments.
Some lawmakers remain skeptical, however. Assemblymember Pat Burke questioned whether the reported job figures have been fully verified. State Sen. Patricia Fahy has also continued to sponsor legislation that would revoke Tesla’s company-owned dealership licenses in New York. John Kaehny of Reinvent Albany has argued that the project has not delivered the manufacturing impact originally promised as well.
Knight, for her part, maintained that Empire State Development has been making the best of a difficult situation.
“(Empire State Development) has tried to make the best of a very difficult situation. There hasn’t been another use that has come forward that would replace this one, and so to the extent that we’re in this place, the fact that 2,000 families at (Giga New York) are being supported through the activity of this employer. It’s the best that we can have happen,” the CEO noted.
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