Tesla Australia Earns $3 Million from Emissions Credits as Storage Revenue Tops EVs
Tesla Australia reported its first revenue from Australia's new vehicle emissions standards, amounting to $3 million. Battery storage accounted for 55% of the company's Australian-sourced revenues in 2025, surpassing electric vehicle sales. Overall revenue declined to $4.5 billion in 2025 from $5.1 billion the previous year.
dnaindia.comAustralia generated $3 million in revenue from regulatory credits sold to other car makers under Australia's new vehicle emissions standards, which took effect last year. This marked the first such income for the company, with no similar earnings in prior years.
The standards require manufacturers to meet emissions targets, and Tesla sold credits to those unable to comply. Battery storage remained the largest revenue source for Tesla in Australia, making up 55% of Australian-sourced revenues in 2025. This share increased from 50.4% in 2024 and 15% in 2023.
Storage revenue held steady at $2.495 billion in 2025, compared to $2.55 billion in 2024, amid industry-wide price declines offset by higher deployments.
Electric vehicle revenue for Tesla Australia dropped to $1.9 billion in 2025 from $2.4 billion in 2024. Sales volume fell from 38,347 units to 28,856 units over the same period. The average sale price rose from $62,500 to $65,800, potentially due to a shift toward premium models or additional features like full self-driving software.
The EV share of total revenue decreased to 42.2% in 2025 from 85.2% in 2023. This decline occurred alongside the growth in storage revenue, which has outpaced EVs since 2024. Tesla's global CEO Elon Musk has previously stated that battery storage could become the company's largest business segment.
Overall revenue for Tesla Australia totaled $4.5 billion in 2025, down from $5.1 billion in 2024. Net profit decreased to $52.7 million from $65.1 million the year before. The company also sold its South Australia virtual power plant business to AGL Energy for $82 million, yielding a $4 million gain.
The annual accounts, signed by Tesla Australia CEO Thomas Drew, noted no changes to business activities. The report omitted details on likely future developments, stating that such information could prejudice the group. Tesla's storage business in Australia includes projects like Megapack units deployed at various sites.
Key Facts
Story Timeline
3 events- 2025
Tesla Australia reported $4.5 billion in overall revenue, with battery storage at 55% and EVs at 42.2%.
1 source@SawyerMerritt - 2024
Battery storage surpassed EV revenue for the first time, accounting for 50.4% of Australian-sourced revenues.
1 source@SawyerMerritt - 2023
Battery storage made up 15% of Tesla Australia's revenues, with EVs at 85.2%.
1 source@SawyerMerritt
Potential Impact
- 01
Other car makers may increase purchases of Tesla's emissions credits to meet standards.
- 02
Tesla's focus on battery storage in Australia could expand with further deployments.
- 03
Declining EV sales may prompt adjustments in Tesla's pricing or model offerings.
- 04
Stable storage revenue despite price falls could support industry growth in renewables.
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