How Tesla can turn energy into a nearly $200 billion business

February 11, 2026 - 02:02

A new analysis highlights the staggering scale of investment required for Tesla to realize its energy ambitions, underscoring the division's potential to become a cornerstone of the company's future. According to financial experts, achieving Elon Musk's target of 100 gigawatts in solar manufacturing capacity could carry a price tag as high as $70 billion.

This immense investment points toward a strategic pivot where energy generation and storage may eventually rival, or even surpass, the automotive segment in value. The vision encompasses a fully integrated ecosystem, combining solar roofs, the Megapack utility-scale battery system, and the Powerwall for homes into a formidable clean energy powerhouse.

The potential growth trajectory suggests this arm of the business could evolve into a nearly $200 billion enterprise. Success hinges on scaling manufacturing at an unprecedented rate while driving down costs, a playbook Tesla has executed in the electric vehicle market. The energy sector's vast size provides a runway for exponential growth if Tesla can successfully replicate its automotive disruption in utilities and residential power.

This strategic expansion positions Tesla not merely as a car company, but as a comprehensive sustainable energy solutions provider, tapping into a global shift toward grid modernization and decarbonization. The coming years will test the company's ability to execute this capital-intensive vision at the required speed.