Why Tesla Stock Jumped Again Friday

Key Points

• Revenue from Tesla's energy business jumped 18% in the first half of 2025.

• EV revenue declined by that same amount.

• Tesla's new Megablock is a pre-engineered system that will lower costs and installation times for customers.

• These 10 stocks could mint the next wave of millionaires ›

Tesla (NASDAQ: TSLA) stock is on the move again today. After jumping 6% yesterday, Tesla have shares bounced another 5.8% Friday as of 11:53 a.m. ET. The recent surge has Tesla stock trading at its highest level since February.

Investors might be reacting to news from the company earlier this week regarding its energy business.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Tesla.

Tesla's growth engine isn't currently from EVs

Earlier this week, Tesla held an event in Las Vegas to introduce new products from its energy storage business, and it included a bit of a surprise. Its next-generation Megapack 3 energy storage system was introduced as expected. But the company also unveiled the new Megablock.

The Megablock combines several Megapacks along with electrical power system components. It's a pre-engineered system that Tesla says will lower costs and installation times for large-scale energy projects. Mike Snyder, Tesla's VP of energy and charging, also said that Tesla plans to build Megapack 3 in Houston starting late next year.

Tesla's energy storage business is thriving even as its electric vehicle (EV) sales are slumping. Energy generation and storage revenue jumped 18% year over year to $5.5 billion in the first half of 2025. At the same time, automotive revenue declined by 18%.

Tesla shares have rallied 15% over the last month. Much of that happened this week after the Las Vegas presentation, which was also streamed live on Tesla's X social media account. Investors had mostly been focusing on the potential of Tesla's robotaxi when it is launched in volume.

In the meantime, the energy business is growing into a more meaningful part of Tesla's revenue stream. That's enough to move the stock much higher this week.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $459,505!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $43,718!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $649,037!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of September 8, 2025

Howard Smith has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.