Tesla Australia makes more from batteries than EV sales

Tesla collected more revenue from energy storage and home battery installations than sales of its Model Y and Model 3 electric vehicles (EVs) in Australia last year.

According to company filings, Tesla’s Australian energy operations posted $2.5 billion in revenue last year, higher than its automotive business, which posted $1.92 billion, a decline of 21 per cent year-on-year.

That’s despite the Model Y remaining Australia’s best-selling EV, helping keep Tesla as the country’s most popular EV brand with 28,856 sales. Second-placed BYD came within striking distance, however, with 25,287 EV sales.

Tesla’s vehicle sales result was significantly lower than the 38,347 it achieved in 2024, when BYD – which still finished second – sold only 14,260 EVs.

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In the local energy space, Tesla sells Powerwall home storage batteries as well as its Megapack industrial batteries used at the 300MW ‘Victorian Big Battery’ near Geelong and at the 150MW Hornsdale Power Reserve in South Australia.

Energy rebates have seen strong take-up of home batteries, with around 455,000 installed in Australian homes and businesses by the end of 2025, according to the Clean Energy Council.

Tesla also sells EV charging equipment, which is classified as part of its energy business rather than its automotive division.

Its net profit across both divisions in Australia in 2025 was $52.7 million, down 19 per cent and including $3 million of credits sold as part of the New Vehicle Efficiency Standard (NVES), which came into effect last year.

The NVES is a national set of regulations that outlines annual average CO2 targets, with brands exceeding these subject to financial penalties.

Tesla sells only zero-emission EVs, meaning it was able to sell ‘credits’ to automakers which had exceeded the limits, helping them avoid penalties.

To the end of April 2026, the Model Y remains Australia’s best-selling EV, but the BYD Sealion 7 SUV sits in second at fewer than 500 units behind, while the Model 3 has slipped from third in 2025 to currently sit eighth.

BYD currently leads EV sales in Australia, with Tesla second and Kia third.

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