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Bloomberg Says Tesla Powerwall Doesn’t Make Sense

Bloomberg News says the Tesla Powerwall doesn’t make sense. So why have 38,000 folks signed up to own or lease one when deliveries won’t start for 6 months?

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Bloomberg News questions whether the Tesla Powerwall — introduced to great fanfare on April 30 — makes economic sense. Their answer? It doesn’t — at least not now. Here’s why.

The Powerwall comes in two versions — a 7 kWh (kilowatt-hour) model and a 10 kWh unit. The smaller battery is design specifically for daily use. The larger battery is strictly a backup power supply.

SolarCity, Tesla’s sister company, has decided not to offer the 7 kWh battery with its rooftop solar systems. That battery “doesn’t really make financial sense,” SolarCity spokesman Jonathan Bass tells Bloomberg. That’s because customers can make money selling their excess solar power back to the grid during the day when rates are high rather than using it to charge up a battery.

Of course, the economics will vary considerably across the country. Not all states require utilities to accept electricity from home solar systems and each electric company has its own rate structure.

SolarCity Offers Larger Powerwall

Solar Installed

SolarCity system installed at New England home of Tesla owner (Source: Rob M)

SolarCity says it will only offer the 10 kWh battery to new rooftop solar customers. “Our residential offering is battery backup,” Bass said in an e-mail. Unlike the smaller unit, which is intended for daily use, the 10 kWh battery is designed for no more than 50 discharge cycles a year. Homeowners can buy it outright for $7,140, including an inverter and installation, or lease it for $15 a month for 9 years with an upfront payment of $5,000.

The 10 kWh battery is rated at 2 kilowatts of continuous power. Does that sound like a lot? It’s not. That’s only enough to run a hair dryer or 2 small window air conditioners for about 5 hours. To provide enough electricity to power a typical home would take eight Powerwall units working together. According to Bloomberg, that would cost $45,000 (if the nine year lease option is selected). There are no known discounts for multiple purchases at this time.

“It’s a luxury good—really cool to have—but I don’t see an economic argument,” said Brian Warshay, an energy and smart technologies analyst with Bloomberg New Energy Finance. Bloomberg suggests you could get the same back up capability from a $3,700 generator available at Home Depot.

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Demand Is “Crazy”

The Powerwall that has captured the public’s imagination has a long way to go before it makes economic sense for most people. Even in Germany, where solar power is abundant and electricity prices are high, the economics of an average home with rooftop solar “are not significantly enhanced by including the Tesla battery,” according to an analysis by Bloomberg New Energy Finance.

Tesla PowerWall units connected

Tesla PowerWall units connected

None of this has dampened the enthusiasm of prospective Powerwall users. Since Elon Musk’s announcement last week, the company has received inquiries from 38,000 people. Demand is so strong, Tesla is considering using its GigaFactory exclusively for residential and commercial storage batteries instead of batteries for its automobiles. There are even rumors it plans to expand the GigaFactory, which isn’t even built yet. Musk says demand has been “crazy off the hook.” He acknowledges that the Powerwall is more expensive than grid power, but says, “that doesn’t mean people won’t buy it.”

If the numbers don’t add up, why would people be in such a frenzy to get a Powerwall of their very own? SolarCity’s Bass says, “There’s a tremendous amount of interest in backup power that’s odorless, not noisy and completely clean.” But its more than that. Some observers call it “The Prius Effect”. Once you think someone else has something new and sexy, you want one for yourself. It’s just human nature.

Elon Musk is a master at creating buzz and then leveraging it. Everywhere you look this week, there are news stories about the Powerwall and what a huge leap forward it is. If all the people who signed up after last week’s announcement follow through, all those new orders will amount to $800 million in new business for the company. The orders are continuing to pour in like a flood tide into the Bay of Fundy.

Tesla Drives Costs Down

Is there anything truly remarkable about the Tesla Powerwall? Yes, there absolutely is. Based on the asking price for the Powerwall, Tesla has managed to get the cost of its batteries down to $250 per kilowatt-hour, something the “experts” claimed couldn’t happen before 2020. That gives Tesla a sizable marketing advantage over other battery companies and that’s before the GigaFactory starts production. Once that comes online, battery prices will undoubtedly fall even more. Musk’s faith in economies of scale seems to be paying off.

What’s Ahead For Tesla?

The truth is that Tesla is really not in the “off the grid” home battery market right now, although there is talk about offering batteries to residents of Hawaii, where electricity costs triple what it does on the mainland. Tesla really has its sights set on commercial and utility scale products. Utility companies often charge commercial and industrial customers their highest rates.

Harness-Store-Power

Business and industry can now charge their Tesla PowerPacks at night when rates are low. Or they can use solar panels to charge them during the day. Either way, they avoid buying electricity from utility companies at peak demand rates.

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A battle is shaping up between energy makers and energy storage providers. The outcome will be nothing less than an upheaval in the way electricity is made and distributed. Battery storage is disruptive technology and there is no one who is more of a champion of disruptive technology than Elon Musk.

In 10 years, residential battery storage systems will be as common as stoves and refrigerators. No home will be without one. SolarCity’s Bass suggests that’s when the Tesla Powerwall will begin to  make economic sense. Microgrids that soak up energy from the sun to charge grid scale batteries will be everywhere. Utility companies as we know them will become marginal players. The Rocky Mountain Institute predicts that demand for electricity from traditional utility companies will decline by 50% in the next 10 years.

As the market for electricity changes, there will be winners and losers. There is no question Elon Musk plans on being one of the winners.

Source: Bloomberg News

 

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Energy

Taiwan power firm bets big on Tesla Megapacks as AI data center thirst grows

Taiwan’s Apollo Power orders 260 Tesla Megapacks, betting AI data centers will need more electricity.

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Concept render of Tesla Megapack farm supporting an AI Data Center in Taiwan
Concept render of Tesla Megapack farm supporting an AI Data Center in Taiwan

A Taiwanese power company has ordered 260 Tesla Megapack 2XL units, roughly 1GWh of storage, betting that electricity rather than chips will decide how fast AI data centers come online. Apollo Power signed the contract with Tesla’s Taiwan energy arm on October 8, according to the company’s filing with the Taiwan stock exchange.

The filing says the units are meant for behind the meter storage and resilient grid projects, with delivery in batches from the end of 2027 and sites operating in 2028. Apollo and Tesla did not disclose a price, citing a confidentiality agreement. Apollo plans to pay for the equipment through a cash capital increase and bank financing, and it noted the purchase is not revenue and does not mean it holds firm orders from its partners.

Biggo reported that only about 33 units are under signed customer contracts, with roughly 150 more in negotiation. The same report put total project investment near NT$130 billion, but that figure includes installation work, with the equipment itself making up about 40 to 50 percent. In other words, a large share of this order is Apollo reserving supply ahead of demand. Apollo’s chairman told local media global large storage supply is tight, which is why the company locked in the units early, according to Yahoo Taiwan Finance.

Tesla Taiwan partners with Costco to sell vehicles

Apollo also launched an AI data center and grid resilience alliance with Phison, Gigabyte and Shihlin Electric. The pitch rests on a pilot at Phison’s Zhunan plant, where Apollo and Tesla Energy Taiwan installed grid forming Megapack 2XLs in June. Tesla Energy Taiwan general manager Sun Hsiao-Han said the project went from demo to 1GWh in four months, and that Tesla Energy has deployed more than 50GWh worldwide.

Taiwan’s cabinet has approved amendments that would require large energy users to install their own generation and storage, which gives enterprise storage a regulatory tailwind.

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The deal fits a pattern Teslarati has tracked. Tesla’s Megablock targets 1GWh commissioned in 20 business days, a pitch aimed squarely at fast moving data center builds. Megapacks already back xAI’s Colossus in Memphis and a 400MW AI campus in Brazil. Sun Media adds that Megapack 2XL was named among the first products in Nvidia’s DSX Ready qualification for battery storage in AI factories.

Deliveries are more than a year away, so the real test is how much of that 260 unit order turns into signed customer contracts.

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Tesla Model 3 and Model Y can now do what only Cybertruck could

Tesla Model 3 and Model Y can power your home with Powerwall 3 during outages.

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Tesla has turned its two top sellers into backup batteries for the house.

Tesla Energy announced on Tuesday that Powershare Home Backup is now available for new Model 3 and Model Y vehicles paired with a Powerwall 3, saying the car can “extend your home backup by over 2 days.” Minutes later, Tesla’s main account quoted the post with a broader pitch: “With Powerwall 3, every Tesla can now serve as your home’s backup battery.”

Until this week, the Cybertruck was the only Tesla that could send power back into a home, and that capability only began working alongside Powerwall 3 last month, after years of ambitious targets.

Tesla’s updated Powershare page says every Model 3 and Model Y ordered in the U.S. or Puerto Rico on or after October 1, 2026 can use the feature. Some, but not all, earlier cars also qualify. Owners can check on the touchscreen under Software, then Additional Vehicle Information, where a capable car shows “Powershare Support: Enabled.” As Electrek reported, bidirectional power on the two cars runs through an inverter Tesla calls PCS2 Lite, and the company has not said when that part entered production on each trim.

The home side is simpler. A house that already has a Powerwall 3 and either a Wall Connector 3 or Universal Wall Connector needs no additional equipment, and Tesla says compatibility is enabled through a software update. When the grid drops, the Powerwall and the car work together, with up to 11.52 kW of continuous power available. Tesla’s “over two days” estimate assumes a home using 30 kWh per day and a car starting at a 90 percent charge. Standard trims are rated for up to two days, while the Cybertruck adds more than three.

There are limits. Powerwall 2 and Powerwall+ support is listed as “coming soon.” Model S and Model X are not included, and Grid Support, the program that lets Cybertruck owners in Texas send power back to the grid during demand spikes for bill credits, is not available for Model 3 or Model Y.

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The rollout also lines up with something Elon Musk said more than three years ago. At Tesla’s March 2023 Investor Day, Musk said, “I don’t think very many people are going to want to use bidirectional charging, unless you have a Powerwall.” Tesla has now shipped the feature for its volume cars with exactly that requirement attached.

The Powerwall pairing was the hard part on Cybertruck. Tesla told owners in December 2025 that Powershare with Powerwall had been pushed to mid 2026, and lead engineer Wes Morrill explained that two devices capable of forming a home’s grid have to negotiate which one leads during an outage, across multiple generations of hardware. With that work done for the truck, Tesla was able to extend it to the Model 3 and Model Y within a month.

Ford and GM have offered home backup from their EVs for several years, but both require a separate inverter and backup hardware. Tesla’s version leans on equipment many Powerwall 3 owners already have on the wall. Powershare for the two cars also ships as part of software update 2026.38.3, the same release that began delivering Halloween Mode on Tuesday.

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Google just picked SpaceX for its first step into orbital AI

Google will launch its first Project Suncatcher AI satellite on SpaceX’s Transporter-18 rideshare next week.

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Google is about to put its own AI chips into orbit for the first time, and it is paying SpaceX to get them there.

The company said Thursday that the first in-orbit test of Project Suncatcher, its research effort to find out whether space can host large-scale AI computing, will fly next week on SpaceX’s Transporter-18 rideshare mission.

The satellite, called MVP, is about the size of a refrigerator and carries four of Google’s Tensor Processing Units, the same chips Google runs in its ground data centers. Google originally planned to launch two custom satellites in 2027, but chose to move faster by integrating its chips into a satellite.

MVP’s solar panels supply about one kilowatt of power, and Google will run Gemini models on the TPUs only in bursts of roughly 15 minutes before the chips shut down so the radiators can shed heat. In a blog post, Google said its Trillium TPUs survived vibration testing that mimicked sustained launch loads of up to 10g, with individual components seeing 50 to 100g, and handled a radiation dose greater than a five year mission would deliver.

SpaceX and Google mull massive partnership on Musk’s orbital data dream: report

Next week’s flight, slated for October 1, follows a relationship that became public in May, when Teslarati reported that Google was in talks with SpaceX for a launch deal tied to orbital data centers. Google also holds a stake of roughly 6% in SpaceX.

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The two companies are chasing the same idea from very different starting points. SpaceX’s own orbital compute program is built around the AI1 satellite, a roughly 70 meter structure derived from Starlink V3 hardware that is designed for 150 kW of peak compute, about 150 times the power MVP will draw. Elon Musk has brushed off concerns about crowding orbit with those satellites, and SpaceX is building its Gigasat factory in Bastrop, Texas, to produce them, targeting an annualized rate of about 1 GW of space compute by the end of 2027.

Musk also posted on X on Thursday that “the amount of compute in space will obviously round up to 100% of all compute.”

Google has been more cautious in public. Its research estimates that launch prices need to fall below about $200 per kilogram before an orbital data center can compete with a ground facility on energy cost, a threshold the company believes could be reached around the mid 2030s. The Suncatcher team has said it expects the effort to remain a project rather than a product for years, which leaves the first real test of its hardware riding on a rocket from the company with the most aggressive timeline in the field.

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