Tesla Inc. investors are closely watching second-quarter vehicle delivery figures expected around July 2, but a shift in focus toward the company's energy business may be warranted. While deliveries remain a key indicator of sales performance, Tesla's Energy Generation and Storage segment is rapidly becoming a major contributor to growth. Estimates suggest this division could generate roughly $18.3 billion in revenue this year, representing nearly one-fifth of the company's expected total revenue.

The energy segment includes products such as Megapack utility-scale battery systems and Powerwall residential energy storage solutions. Demand has surged as utilities, corporations, and governments invest in grid modernization, renewable energy integration, and backup power infrastructure. Unlike the automotive business, which faces pricing pressure and intense competition, the energy segment has delivered strong growth and improving profitability.

Several factors are driving the expansion of Tesla's energy business. Utilities are increasing investments in battery storage, data centers are consuming more electricity, and power grids globally are being upgraded to meet rising energy demand. These trends have elevated products like Megapack from niche offerings to significant revenue sources. The company's Megapack factory in California is operating at scale, and a second Megafactory in Shanghai is expected to further boost production capacity.

For years, Tesla's valuation has been tied primarily to vehicle sales expectations. However, energy storage is becoming a more meaningful part of the overall growth story. The segment benefits from long-term trends such as rising electricity demand, AI-driven data center expansion, and increased grid infrastructure investment. These developments provide Tesla with an additional growth avenue beyond vehicle deliveries.

Investors analyzing Tesla's upcoming delivery report may want to consider the energy segment's performance alongside automotive figures. While deliveries offer insight into the car business, energy revenue could provide a crucial glimpse into the company's next phase of growth. If current estimates hold, Tesla's energy business could approach the size of a Fortune 500 company on its own.

Tesla Inc. CEO Elon Musk confirmed that the company’s Model Y and Model 3 vehicles possess the highest percentage of American-made content in the U.S. market. The statement follows a ranking by Cars.com shared on X by influencer Sawyer Merritt, which placed the two Tesla models at the top of the list for domestic parts content.

The Tesla Model Y and Model 3 secured the top two positions, followed by Stellantis NV’s Jeep Gladiator and Grand Cherokee, as well as Honda Motor Co. Ltd.’s Ridgeline and Odyssey. According to the post, this marks the sixth consecutive year that Tesla has claimed the title of the most American-made vehicle.

Trade Agreement Uncertainty

The announcement arrives amid ongoing uncertainty regarding the future of the U.S.-Mexico-Canada Agreement (USMCA). Former President Donald Trump has expressed doubts about renewing the agreement, citing trade deficits with Canada and Mexico. U.S. Trade Representative Jamieson Greer indicated that tariffs on Mexico’s auto and steel industries would remain in effect despite renegotiations slated to end July 1st 2026. Greer also suggested the possibility of the administration withdrawing from the USMCA altogether in 2026.

EV Sales and Market Performance

Market research firm Cox Automotive estimated that U.S. EV sales could reach record highs despite the end of the $7,500 Federal EV Credit. The firm projected over 85,000 EVs were likely sold in the U.S. last month. Musk stated that Tesla sales increased following the conclusion of the federal tax credit. Separately, Goldman Sachs Group Inc. released a report forecasting that global EV sales could reduce worldwide oil demand by over 320,000 barrels per day in December 2027.

Tesla reported sales growth across multiple international markets. Sales in China grew 22%, while exports from its Shanghai factory increased 68% in May. In Europe, the company saw significant surges, with sales in France jumping 655% to 5,446 vehicles. Sales in Sweden rose 71% to 858 vehicles, while Denmark and Spain saw growth of 136% to 1,750 vehicles and 113% to 1,690 vehicles, respectively.

Tesla shares fell 5.59% to $382.40 during pre-market trading on Wednesday.