In a striking shift, Tesla‘s battery storage division in Australië generated more revenue than its electric vehicle (EV) sales in 2024, highlighting the growing role of energy storage in the company’s portfolio. According to Tesla Motors Australia’s annual report filed with the Australian Securities and Exchange Commission, total revenue reached $5.1 billion, with battery storage contributing $2.55 billion compared to $2.44 billion from EVs.

Battery Storage Boom

Tesla’s battery storage revenue soared nearly fivefold from $580 million in 2023 to $2.55 billion in 2024, driven by grid-scale projects and household installations like the Powerwall. The company’s pioneering Hornsdale Power Reserve, built in 2017 with 150 megawatts (MW) and 193.5 megawatt-hours (MWh) of capacity, set the stage for Australia’s leadership in battery storage. Newer projects, such as the 560 MW, 2,240 MWh Collie battery in Western Australia, showcase Tesla’s focus on utility-scale storage. Revenue-sharing arrangements, like the Bouldercombe battery in Queensland, further boost earnings by leveraging grid services. “This relates to estimates and judgement around the future market energy price, seasonality and demand,” Tesla noted in its filing, explaining the valuation of $363 million in contract assets tied to projects like Hornsdale and Western Downs.

EV Sales Face Headwinds

Tesla’s EV sales in Australia declined from $3.18 billion in 2023 to $2.44 billion in 2024, with a 62% drop in 2025 so far. Competition from Chinese manufacturers like BYD and MG has eroded Tesla’s market share, forcing price cuts on the Model Y en Model 3. The refreshed Model Y, featuring improved aerodynamics and a 343-mile (551 km) range for the Long Range AWD variant, aims to reverse this trend. However, consumer pushback linked to CEO Elon Musk‘s political activities poses challenges. Tesla’s retooling for the updated Model Y also temporarily disrupted production.

Industry Shifts and Legal Challenges

Tesla’s Powerwall slipped to fourth place in Australia’s home storage market, trailing Sigenergy, Sungrow, and Alpha ESS. Meanwhile, the company plans to sell its South Australia virtual power plant, a network of distributed home batteries, pending government approval. A class action lawsuit filed on February 21, 2025, in the Federal Court of Australia alleges Tesla’s vehicles fail to meet advertised automation and battery range claims, adding regulatory pressure.

EVXL’s Take

Tesla’s pivot to battery storage in Australia feels like Tony Stark redirecting his arc reactor to power the grid instead of just his suit. The numbers don’t lie—$2.55 billion from batteries versus $2.44 billion from EVs shows where the juice is flowing. For EV owners, the Model Y refresh offers hope, but competition and Musk’s headlines might keep some buyers at bay. Utility-scale projects like Collie signal Tesla’s staying power in energy storage, even if Powerwall’s losing ground at home. Aussies love their EVs, but with BYD charging up and legal clouds looming, Tesla’s got to keep its foot on the accelerator to stay ahead in this sunburnt land.

Photos courtesy of Renew Economy / Tesla