Tesla is updating its utility-scale Megapack batteries because it seeks to stem the decline of its profitable vitality storage enterprise.
The brand new battery product generally known as Megapack 3, which Tesla revealed late Monday, are a bid to lure utilities and information middle builders which might be determined for energy. Megapack 3 shops round 1 megawatt-hour extra electrical energy than Tesla’s largest current providing and guarantees an extended lifespan.
Tesla additionally launched Megablock, a grouping of 4 Megapack 3 items that may retailer 20 megawatt-hours. The grouping ought to cut back set up instances by 23% and building instances by as much as 40%, the corporate mentioned. Cells for the battery packs can be sourced from the U.S., Southeast Asia, and China.
By updating the thermal administration system, Megapack 3 will have the ability to function from –40˚ F to 140˚ F, specs that ought to cowl nearly in every single place on Earth.
Buyers should wait some time to see any affect on Tesla’s stability sheet, although. Each merchandise can be manufactured in Tesla’s Megafactory close to Houston and received’t enter manufacturing till the latter half of 2026.
Tesla’s vitality storage enterprise might use a shot within the arm after reporting two consecutive quarters of declining numbers this 12 months. The corporate was the main provider of battery vitality storage techniques in 2024, although its lead was slipping even then, according to Wooden Mackenzie.
In the meantime, the remainder of the vitality storage business has been rising swiftly.
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The brand new Houston manufacturing facility can be able to producing as much as 50 gigawatt-hours per 12 months of Megapack 3 and Megablock items. Final quarter, Tesla put in 9.6 gigawatt hours of stationary vitality storage.
Tesla’s photo voltaic and vitality storage companies would appear to have a built-in buyer in CEO Elon Musk’s different firm, xAI. The AI firm has added 168 Megapacks at its information middle in South Memphis, Tennessee, although it’s apparently exploring the addition of extra dozens extra gasoline generators. No new battery additions have been reported.