Tesla Stock Surges on Energy Business Momentum

Tesla shares rallied for a second consecutive day, climbing 5.8% on Friday following a 6% gain Thursday. The stock now trades at its highest level since February, buoyed by investor Optimism around the company's energy storage division.

At a Las Vegas event this week, Tesla unveiled its next-generation Megapack 3 storage system and introduced the modular Megablock solution. The pre-engineered systems promise faster deployment and lower costs for utility-scale projects. Tesla plans to manufacture Megapack 3 at a new Houston facility starting late 2026.

The energy business has become Tesla's growth engine amid slowing EV sales. Energy generation and storage revenue grew 18% year-over-year to $5.5 billion in H1 2025, while automotive revenue declined by the same margin. The stock has gained 15% over the past month, with most gains coming after Tesla's live-streamed product reveal.