According to Global Times, Tesla has announced the start of trial production at its Shanghai Megapack energy storage facility, the company’s first energy storage system factory outside the United States. The factory, completed in December 2024, is expected to achieve mass production in early 2025, with an annual output of 10,000 Megapack units, equivalent to 40 GWh of energy storage capacity. This significant milestone marks Tesla’s continued expansion in China following the establishment of its Shanghai Gigafactory in 2019.
The Shanghai Megapack plant was constructed in record time, taking only seven months from groundbreaking in May 2024 to completion in December 2024. Spanning 200,000 square meters, the facility will manufacture energy storage batteries primarily for global markets. Tesla’s Megapacks, widely recognized for their efficiency in renewable energy integration and grid stabilization, are now deployed in over 60 countries worldwide. According to Tesla’s Q3 2024 financial report, its energy storage business generated $2.376 billion in revenue, a 52% year-on-year increase, with a profit margin exceeding 30%. Over 31 GWh of energy storage was deployed in 2024, more than double the deployment in 2023.
Tesla’s energy business continues to grow as a key profit driver. The Shanghai Megapack plant complements the company’s California Megafactory, positioning Tesla as a global leader in energy storage solutions. The company’s focus on rapid innovation and localized production has bolstered its competitiveness, particularly in China, the world’s largest market for renewable energy adoption. Tesla’s Gigafactory in Shanghai has also proven pivotal, exporting over 1 million vehicles since its launch and serving markets across Europe, Asia-Pacific, and Australia.
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