Energy
Tesla’s value is based on a vision of a better tomorrow
On Monday, April 10, 2017, Tesla, Inc. (NASDAQ: TSLA) shares closed at $312.39, surpassing the stalwart General Motors Corporation (NYSE: GM) by market cap. This was a revolutionary day in the world of U.S. automakers, coming just a week after Tesla exceeded the century-old, reliable Ford Motor Company (NYSE: F) in value.
Tesla lost $773 million last year. Traditional U.S. automakers are financially healthy and consistently sell the vehicles they manufacture. Tesla CEO Elon Musk has acknowledged on Twitter that the company was “absurdly overvalued if based on the past.” So, what is the “past” in the world of automakers, and why is Tesla, a company that sells millions of vehicles less than other major U.S. automakers, surging ahead?
The answer lies in Tesla’s ability to identify that — contrary to prevailing political discourse about the need for coal, oil and natural gas industries — more and more people are ready to make the switch to electric vehicles. And Tesla has built its company assets around that vision for a better, more sustainable world that no longer relies on fossil fuels for transportation and energy.
Tesla stock is not based on the past
A stock is a “concrete representation of partial ownership of a publicly traded company,” according to Motley Fool. A share in a stock represents the company’s big picture of revenue, earnings, cash flow, and shareholder’s equity, among other factors. Okay, Tesla’s Gigafactories outside Reno and in Buffalo have tangible book value with equipment, buildings, and land. But that’s not enough for the recent exceptional Tesla valuation. Tesla’s price-to-earning ratio, or how long a stock will take to pay back an investment, is quite uncertain.
New aerial shots of Tesla Gigagafactory 1 taken March, 2017
The company’s value seems to be hinged on a non-traditional investment perspective that Ford and GM are falling fast. It’s a result of a common fear that their vehicle sales have hit their peak, that their once-stellar levels of production and return will never again be achieved. Moreover, Tesla benefits from a historical growth rate of the company’s earnings.
In other words, Tesla stock has soared in the past three years, up nearly 40 percent this year alone. Tesla, as Musk noted on Twitter, is all about “risk adjusted future cash flows.”
Electricity is our friend, and Tesla knows it
Electric vehicles offer many positive benefits as we attempt to alleviate the effects of global warming. They produce fewer greenhouse gasses when powered by plants that don’t produce greenhouse gasses. Better yet, EVs can be powered by decentralized power sources like the Tesla Powerwall for residences or the Tesla Powerpack for business energy independence or as a companion to existing utility power generation. A cleaner electric grid can contribute other environmental advantages like decreased consumption of water and less depletion of natural resources like steel and copper materials.
Electric vehicles are shaking up long-established industries at a much faster rate than anyone anticipated. Electricity mixes in North America are increasingly moving away from fossil fuel reliance and onto hydro and other renewable energies. We’re using energy more wisely with electric vehicles. There’s a significant reduction in the CO2 equivalent emissions from swapping a fossil-fuel powered car for an EV. Transport emissions comprise a statistically significant portion of the emissions that have contributed to anthropogenic climate change.
The folks at Tesla have been aware of the benefits of electricity-based transportation since the company’s inception.
U.S. automakers lag behind in alternative energy technology applications
Instead of moving toward technological innovations that could revolutionize the U.S. auto industry, the Big Three automakers lobbied the new Trump administration to reduce Corporate Average Fuel Economy targets of 50 miles per gallon by 2025. The move sent a stark message to a consumer base that is ready for a safe, reliable, fossil-free transportation future. Allegiances with the Trump administration sent signals that U.S. automakers are not ready with the necessary R&D to provide energy efficiency, alternative power, or autonomous driving.
Tesla Superchargers with solar canopies framed by the beautiful mountains in Aosta, Italy
Meanwhile, every Tesla comes standard with adapters to plug into common household outlets. The company states that a Tesla owner can charge up to 52 miles of range per hour right from home by plugging in the Tesla “like a mobile phone.” Tesla supercharger stations are strategically placed to minimize stops during long distance travel. Conveniently located near restaurants, shopping centers, and WiFi hot spots, the company says that each station contains multiple Superchargers to help Tesla drivers get back on the road quickly.
As we wrote here at Teslarati after the U.S. presidential election in November, over the past 50 years, automobiles have been our freedom machines, a means of both transportation and personal identity expression. In the same way that Henry Ford matched a youthful and euphoric generation to the combustion-engine automobile, so, too, do automakers need to design strategic moves to shape the industry’s evolution. Electric vehicles are at the heart of that vision for tomorrow’s consumer domestic transportation.
Tesla stock is valued, not by traditional measures, but by a vision that appeals to a generation of individuals who believe we can achieve a sustainable world. And we hold to that belief by investing in a stock like Tesla, which gives us hope against extraordinary odds.
Energy
Tesla Megapacks powers the xAI Colossus supercomputer
Tesla Megapacks step in to stabilize xAI’s Colossus supercomputer, replacing natural gas turbines. Musk’s ventures keep intertwining.
Tesla Megapack batteries will power the xAI Colossus supercomputer in Memphis to ensure power stability. The collaboration between Tesla and xAI highlights the synergy among Elon Musk’s ventures.
The artificial intelligence startup has integrated Tesla Megapacks to manage outages and demand surges, bolstering the facility’s reliability. The Greater Memphis Chamber announced that Colossus, recently connected to a new 150-megawatt electric substation, is completing its first construction phase. This transition addresses criticism from environmental justice groups over the initial use of natural gas turbines.
“The temporary natural gas turbines that were being used to power the Phase I GPUs prior to grid connection are now being demobilized and will be removed from the site over the next two months.
“About half of the operating turbines will remain operating to power Phase II GPUs of xAI until a second substation (#22) already in construction is completed and connected to the electric grid, which is planned for the Fall of 2025, at which time the remaining turbines will be relegated to a backup power role,” the Chamber stated.
xAI’s rapid development of Colossus reflects its ambition to advance AI capabilities, but the project has faced scrutiny for environmental impacts. The shift to Megapacks and grid power aims to mitigate these concerns while ensuring operational continuity.
The Megapack deployment underscores the collaboration among Musk’s companies, including Tesla, SpaceX, Neuralink, and The Boring Company. Tesla appears to be the common link between all of Musk’s companies. For example, The Boring Company built a tunnel in Giga, Texas. In addition, Musk has hinted at a potential collaboration between the Tesla Optimus Bot and Neuralink. And from January 2024 to February 2025, xAI invested $230 million in Megapacks, per a Tesla filing.
Tesla Energy reported a 156% year-over-year increase in Q1 2025, deploying 10.4 GWh of storage products, including Megapacks and Powerwalls. Tesla’s plans for a new Megapack factory in Waller County, Texas, which is expected to create 1,500 jobs in the area, further signal its commitment to scaling energy solutions.
As xAI leverages Tesla’s Megapacks to power Colossus, the integration showcases Musk’s interconnected business ecosystem. The supercomputer’s enhanced stability positions xAI to drive AI innovation, while Tesla’s energy solutions gain prominence, setting the stage for broader technological and economic impacts.
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.
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.
Tesla posts Optimus’ most impressive video demonstration yet
Starship Flight 9 nears as SpaceX’s Starbase becomes a Texan City
The Boring Company accelerates Vegas Loop expansion plans
-
News2 weeks agoTesla Cybertruck Range Extender gets canceled
-
Elon Musk6 days agoTesla seems to have fixed one of Full Self-Driving’s most annoying features
-
Lifestyle2 weeks agoAnti-Elon Musk group crushes Tesla Model 3 with Sherman tank–with unexpected results
-
News2 weeks agoStarlink to launch on United Airlines planes by May 15
-
News2 weeks agoTesla Semi gets new adoptee in latest sighting
-
News2 weeks agoTesla launches its most inexpensive trim of new Model Y
-
News2 weeks agoUS’ base Tesla Model Y has an edge vs Shanghai and Berlin’s entry-level Model Ys
-
News2 weeks agoTesla Cybertruck owners get amazing year-long freebie