Tesla energy revenue drops 16% as it refunds customers over tariffs

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.