Elon Musk-led EV giant Tesla Inc. TSLA said on Monday that its newly built megafactory in Shanghai manufactured the first Megapack, boosting the company’s fast-growing energy storage segment.
What Happened: The first megapack to have rolled off the production line at the Shanghai megafactory will be shipped to Australia, the company said in a post on X, formerly Twitter.
Megapack is a powerful battery manufactured by the company for large-scale energy storage. Each unit can store over 3.9 Megawatt-hours of energy, which is enough to power an average of 3,600 homes for an hour.
The Shanghai megafactory is the company’s first factory dedicated to the production of energy storage products outside the U.S. Currently, Tesla has only one other factory dedicated to manufacturing megapacks, located in Lathrop, California. The Lathrop facility has the capability of producing 40 GWh of energy storage products every year.
Tesla officially began the construction of the Shanghai megafactory in May, taking less than a year from the start of construction to commencing production.
Why It Matters: Tesla reported revenue of over $3 billion from its energy generation and storage segment in the fourth quarter or more than double the $1.44 billion reported in the corresponding quarter of 2023, upon deploying a record 11.0 GWh of energy storage products.
Revenue from the energy segment accounted for about 12% of the company’s total revenue in the quarter, while the automotive segment accounted for 77%. The company reported quarterly total revenue of $25.71 billion, missing a street consensus estimate of $27.26 billion, owing to an 8% drop in automotive revenue.
Tesla continues to be hopeful for its energy segment for it said late last month that it expects energy storage deployment to grow at least 50% year-over-year in 2025. Both the powerwall and megapack continue to be supply-constrained as it opens to new markets, the company added.
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