When talking about Tesla’s latest solar power and energy storage changes and production, CEO Elon Musk said that Tesla is becoming a “giant distributor global utility”:
“Tesla’s overarching strategy here is effectively to become a giant distributor global utility.”
Musk is especially referencing Tesla’s new solar subscription product under which they deploy solar arrays on people’s roofs at no cost and they only charge a monthly fee without a contract for the electricity generated by the system.
With those latest products and the upcoming new Tesla Solar Roof V3, Musk expects exceptional growth from the energy division.
He even said that he expects it will be around the same size as Tesla’s automotive business:
“I think there is generally a lack of understanding or appreciation for the growth of Tesla Energy, as Kunal was talking about. In the long term, I expect Tesla Energy to be of the same or roughly the same size as Tesla’s automotive sector or business.”
That’s a bold prediction considering that Tesla’s automotive business generated $5.353 billion last quarter and in comparison, Tesla Energy made about $400 million in revenue.