The company’s solar and storage unit shows resilience while Tesla advances slowly in robotics and self-driving technology.
CEO Elon Musk plans major investments in new assembly lines and robotics, targeting $20 billion in spending this year.
These initiatives could push Tesla into negative cash flow, marking its first quarterly decline in two years.
Vehicle profitability continues to shrink, while regulatory credit revenue declines after recent U.S. policy changes.
Meanwhile, energy storage demand rises, driven by large-scale battery systems powering expanding global data centers.
Analysts expect the energy unit to generate $18.3 billion revenue in 2026, with strong margins near 29%.
Quarterly forecasts suggest energy revenue will grow 25%, outpacing automotive and services segments significantly.
Despite momentum, experts caution that uneven sales patterns and pricing pressures may challenge sustained growth.
