Tesla pockets first emissions credits in Australia, as storage revenues trump EVs again

Tesla Australia has pocketed its first revenues from Australia’s new vehicle emissions standards, but its battery storage business has reinforced its dominance over EVs as the company’s biggest source of revenue.

Tesla the global company is best known for its EVs, even though CEO Elon Musk has often predicted that battery storage could emerge as the biggest owner – although most analysts might think that mantle will go to AI.

In any case, as Renew Economy reported last year, Tesla Australia became in 2024 the first to source more revenue from battery storage than from EV sales, and this has been reinforced and intensified over the last 12 months.

See: Tesla battery storage revenue trumps electric vehicle sales in Australia as revenue tops $5 billion for first time

Indeed, battery storage has leaped from just 15 per cent of the company’s Australian sourced revenues in 2023 to 50.4 per cent in 2024 and to 55 per cent in 2025, reflecting the surging success of its storage business, and despite a substantial fall in battery prices over that time.

The EV share of revenue has fallen from 85.2 per cent of revenue in 2023 to 42.2 per cent in 2025, mostly as a result of falling EV sales.

The latest annual accounts filed by Tesla Australia shows overall revenue was down to $4.5 billion in 2025 from $5.1 billion in 2024, while its net profit for the 2025 calendar year fell to $52.7 million from $65.1 million a year earlier.

EV revenue fell sharply, from $2.4 billion to $1.9 billion, as EV sales numbers in Australia slumped from 38,347 to 28,856. The average sale price for its EVs rose from $62,500 to $65,800, which is either the result of more premium sales, or perhaps more revenue from FSD (full self driving).

Storage revenue was relatively stable – at $2.495 billion from $2.55 billion – suggesting that growth in storage deployments, particularly in big batteries, was offset by the significant price falls in the industry.

Tesla also earned $3 million from regulatory credits sold to legacy car makers that could not meet their targets under the new Vehicle Emissions Standards that came into force last year. There was no income from regulatory credits in previous years.

During the year, Tesla also sold its South Australia VPP business to AGL Energy for $82 million, resulting in a gain of $4 million.

The accounts, signed off by Tesla Australia CEO Thomas Drew, provided no commentary on the performance apart from “no change” to its business activities.

“Likely developments in the operations of the group and the expected results of those operations in future financial years have not been included in this report as the inclusion of such information is likely to result in unreasonable prejudice to the group,” it said.

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