Apr. 15, 2025, 06:59 AM While Tesla (TSLA) is best known for revolutionizing the electric vehicle (EV) industry, its lesser-known energy segment is quietly gaining momentum. As investors fixate on vehicle deliveries and margins, Tesla’s energy division, including battery storage, solar solutions, and grid-scale power systems, could be the company’s next major growth engine. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. Tesla’s energy storage segment includes products like the Megapack and Powerwall to store electricity for use in homes, businesses, and utility-scale projects. Tesla Energy Powers Ahead with Impressive Gains According to Main Street Data, Tesla’s automotive segment still accounts for most of its revenue. However, the energy segment has shown impressive year-over-year growth. In Q4 2024, Tesla reported $3.06 billion in revenue from energy generation and storage, marking an outstanding 113% increase from the prior year. The segment contributed nearly 12% to the company’s total revenue for the quarter. In 2024, this division generated nearly $10.1 billion in revenue, marking a 67% year-over-year increase. Additionally, in terms of gross margins, Tesla’s energy segment surpasses its other divisions. In Q4, the energy segment recorded a margin of 25.2%, compared to the automobile segment’s margin of 16.6%. Main Street Data also underscores the solid momentum in Tesla’s Energy division in Q1 2025. The company deployed 10.4k MWh (megawatt-hour) of energy storage systems, which was more than double the 4.05k MWh deployed in the same quarter last year. This was Tesla’s second-best quarter ever for energy deployments, trailing only Q4 2024. Is Tesla a Good Stock to Buy Right Now? Despite the strong performance of Tesla’s energy segment, the company’s overall share price continues to face pressure. Weak electric vehicle (EV) sales, rising competition, and mounting backlash against CEO Elon Musk have weighed heavily on investor sentiment. While the energy division shows promise as a future growth driver, it hasn’t yet been enough to offset concerns in Tesla’s core automotive business. On Wall Street, analysts have maintained a neutral stance on Tesla stock. According to TipRanks, TSLA stock has received a Hold consensus rating, with 16 Buys, 11 Holds, and 11 Sells assigned in the last three months. The average price target for Tesla shares is $305.93, suggesting a potential upside of 21.23% from the current level.