Tesla Sells $430 Million Energy Storage Products to xAI
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Newsfilter
- Sales Highlight: In 2025, Tesla sold $430 million worth of Megapacks to Elon Musk's AI startup xAI, accounting for 3.4% of Tesla's energy business revenue, indicating growth potential in the energy sector.
- Energy Business Growth: Tesla's energy division saw a 27% revenue increase to $12.8 billion in 2025, despite a 10% drop in auto revenue, showcasing the company's success in diversifying its income sources.
- Investment and Collaboration: Tesla invested $2 billion in xAI's latest funding round, reflecting its commitment to the AI sector and potentially supporting future technological integration and market competitiveness.
- Environmental and Legal Challenges: xAI's use of natural gas turbines at its Colossus data center has led to community complaints and regulatory scrutiny, while allegations against Musk regarding resource diversion to xAI have sparked a fiduciary duty lawsuit.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSLA is 401.93 USD with a low forecast of 25.28 USD and a high forecast of 600.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 431.460
Low
25.28
Averages
401.93
High
600.00
Current: 431.460
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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