Tesla’s energy business deployed more batteries in Q3 2026 but brought in less money. Energy generation and storage revenue fell 16% year-over-year to $2.88 billion, even though storage deployments rose 10% to 13.7 GWh.

Tesla’s shareholder letter blames the drop “partially” on “tariff-related customer refunds.” It doesn’t say how much it refunded, to which customers, or why it was accounted for as reduced revenue.

Australia just switched on its longest-duration grid battery, and it runs on 144 Tesla Megapacks.

RWE’s Limondale battery in New South Wales can discharge for a full eight hours — four times longer than the two-hour batteries that dominate the Australian grid. It’s the first project of its kind in the country.

Tesla has started building its next-generation Megapack 3 grid battery, with the first units rolling off the line at the company’s new Megafactory in Brookshire, Texas.

The plant went from groundbreaking to production in 16 months and is designed to build 50 GWh of Megapack 3 a year. That’s the version Tesla says packs roughly 28% more energy into the same footprint as the Megapack it replaces.

Tesla and independent energy firm NatPower have reached a deal to build 25 gigawatt-hours of battery storage in Italy and Britain, the first phase of a program worth up to $5 billion.

Under the multiyear agreement, NatPower will deploy Tesla’s Megapack systems and use Tesla’s trading software to decide when to buy and sell electricity — extending Tesla’s reach deeper into Europe’s fast-growing grid storage market.