EV giant Tesla Inc. TSLA said on Tuesday that its megapack factory in Shanghai has started trial production before formally starting mass production early next year.
What Happened: The Tesla 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.
Tesla officially began the construction of the Shanghai megafactory in May, taking only seven months from the start of construction to starting trial production.
Formal mass production is slated to start in Q1 2025.
Why It Matters: Megapack is a powerful battery manufactured by the company in addition to its home battery called Powerwall. Each megapack unit can store over 3.9 Megawatt-hours of energy or enough to power an average of 3,600 homes for an hour.
In the three months through the end of September, Tesla’s energy generation and storage revenue touched $2,376 million, marking a growth of 52% as compared to the corresponding period of last year. The energy business achieved a record gross margin of 30.5% and the powerwall product achieved record deployments.
Tesla has another factory in China called Giga Shanghai which produces the company’s popular Model 3 sedans and Model Y SUVs. The company began construction of the factory in January 2019 and it became operational by the end of the year.
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Photo courtesy: Tesla
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