Tesla Energy delivers positive growth margin in Q4, company-wide losses predicted to end in 2016


The first Tesla Energy storage products have now been installed in the U.S., Australia, and Germany, although it remains reluctant to delivering a forecast for sales in 2016. Tesla delivered in Q4 and Full Year 2015 Update yesterday, reporting that production of its Powerwall and Powerpack products has been transferred to its Gigafactory in Nevada.

In response to an analyst question as to whether the company is on track to supply US$400 – $500 million of stationary battery storage products in 2016, Chief Technical Officer Jeffrey Straubel said that the company was, “being fairly cautious in trying to make sure that we don’t overpromise.”

Tesla plans to supply 15 GWh of stationary battery storage from its 35 GWh Gigafactory, once the facility is fully ramped in 2020.

“Production is in on track and we feel really, really good about that,” said Straubel. “We’re starting shipments of Powerwalls and Powerpacks worldwide, and we’re growing out the sales operations and sales teams around the world.” Germany and Australia are Tesla Energy’s initial targeted markets for its stationary storage products. Tesla confirmed that headcount at the Gigafactory now stands at around 275.

Answering questions as to whether fit out and ramp at the Gigafactory is proceeding as planned, both Straubel and Tesla Chairman and Chief Financial Office Jason Wheeler said that the company is on track to meet its production targets.

“The general plan is executing actually quite closely to what we had laid out back in 2014,” said CFO Wheeler. “We’re on track to start cell production towards the end of this year.” Currently Tesla is assembling its stationary and automotive batteries at the Gigafactory, with lithium ion cell production taking place elsewhere.

CFO Wheeler would not be drawn as to how much of Tesla’s Capital Expenditure is currently going towards the Gigafactory. However, he noted that Panasonic, “continue[s] to be an excellent partner in the project. [Panasonic has] also started hiring for the project, and training people.” In an interview with the Wall Street Journal, Panasonic President Kazuhiro Tsuga revealed that the company plans to invest up to US$1.6 billion on the Gigafactory.