Energy
Tesla’s Director of Battery Engineering has reportedly left the company
Tesla’s Director of Battery Engineering, Jon Wagner, has reportedly left the company to focus on a new role at a battery and powertrain startup in Redwood City, CA. The report, first surfaced on Jalopnik, states that Wagner departed Tesla in October, despite his LinkedIn profile still showing that he’s currently employed by the Silicon Valley electric car maker.
Wagner, who’s been at Tesla since 2013, has served as Tesla’s Interim Director for Body Engineering, Computer Aided Engineering, Materials, and Battery Manufacturing Engineering throughout his near five-year term. During his time at Tesla, Wagner led the cost-down and product improvement effort for Model S and Model X’s battery pack. He also pushed research and development efforts that would ultimately translate into technological innovation for Tesla’s Powerwall and Model 3.
According to the United States Patent and Trademark Office (USPTO), Wagner is one of the inventors on a patent that was filed by Tesla for an Energy storage system with heat pipe thermal management. We’ve provided background for the patent as outlined by the USPTO.
Energy storage systems are used in a variety of contexts. For example, an electric vehicle can have a number of individual energy storage units (e.g., lithium-ion cells) stored inside a compartment, and this system is often referred to as a battery pack. Cells and other storage units generate heat during operation, such as during the charging process and when the cells are used to deliver energy, for example to the propulsion/traction system of the vehicle.
One cooling approach currently being used involves lithium-ion cells that are electrically connected by an anode terminal at the bottom of the cell, and a cathode terminal on top of the cell. These cells are arranged to all have the same orientation (e.g., “standing up”) with some spacing provided between all adjacent cells. The spacing facilitates a cooling conduit to run between the cells and be in contact with at least a portion of the outer surface of each cell. The cooling conduit has a coolant flowing through it, which removes thermal energy from inside the battery pack to some location on the outside, where heat can be safely dissipated. In order to provide a safe coolant flow, one must provide fluid connections into and out of the battery package, and the coolant path inside the battery pack must be reliable and have enough capacity.
Wagner’s departure comes at a critical time for Tesla, as it continues to work through battery production challenges being faced at the Gigafactory, and looks to prove to the consumer market that the company’s ‘holy grail’ vehicle, Model 3, will be able to reach volume production of 5,000 vehicles per week by the end of March 2018.
The Silicon Valley electric car maker noted in its third quarter 2017 earnings report that some of the manufacturing processes for Model 3’s battery modules needed to be redesigned, thus delaying the company’s original plan to begin volume production in December by three months. “To date, our primary production constraint has been in the battery module assembly line at Gigafactory 1, where cells are packaged into modules.” read the statement from Tesla in its update letter.
Tesla CEO Elon Musk provided additional background during a Q&A call with analysts, noting that much of the software that was needed for battery module production had to be redesigned. “We had to rewrite all of the software, from scratch. We managed to write 20 to 30 man-years of software in 4 weeks.” said Musk in explaining the level of reprogramming needed for the manufacturing robots.
As senior leaders at Tesla continue to depart, one has to question whether Wall Street’s love and hate stock and Silicon Valley’s sweetheart is biting off more than it can chew. Are these turnovers early indication that Tesla might be headed for a major downturn in 2018 or is it all par for the course?
Energy
Tesla Energy celebrates one decade of sustainability
Tesla Energy has gone far since its early days, and it is now becoming a progressively bigger part of the company.
Tesla Energy recently celebrated its 10th anniversary with a dedicated video showcasing several of its milestones over the past decade.
Tesla Energy has gone far since its early days, and it is now becoming a progressively bigger part of the company.
Tesla Energy Early Days
When Elon Musk launched Tesla Energy in 2015, he noted that the business is a fundamental transformation of how the world works. To start, Tesla Energy offered the Powerwall, a 7 kWh/10 kWh home battery system, and the Powerpack, a grid-capable 100 kWh battery block that is designed for scalability. A few days after the products’ launch, Musk noted that Tesla had received 38,000 reservations for the Powerwall and 2,500 reservations for the Powerpack.
Tesla Energy’s beginnings would herald its quiet growth, with the company later announcing products like the Solar Roof tile, which is yet to be ramped, and the successor to the Powerwall, the 13.5 kWh Powerwall 2. In recent years, Tesla Energy also launched its Powerwall 3 home battery and the massive Megapack, a 3.9 MWh monster of a battery unit that has become the backbone for energy storage systems across the globe.
Key Milestones
As noted by Tesla Energy in its recent video, it has now established facilities that allow the company to manufacture 20,000 units of the Megapack every year, which should help grow the 23 GWh worth of Megapacks that have already been deployed globally.
The Powerwall remains a desirable home battery as well, with more than 850,000 units installed worldwide. These translate to 12 GWh of residential entry storage delivered to date. Just like the Megapack, Tesla is also ramping its production of the Powerwall, allowing the division to grow even more.
Tesla Energy’s Role
While Tesla Energy does not catch as much headlines as the company’s electric vehicle businesses, its contributions to the company’s bottom line have been growing. In the first quarter of 2025 alone, Tesla Energy deployed 10.4 GWh of energy storage products. Powerwall deployments also crossed 1 GWh in one quarter for the first time. As per Tesla in its Q1 2025 Update Letter, the gross margin for the Energy division has improved sequentially as well.
Tesla Energy shined in what was a weak delivery report for the first quarter, as the company’s frequently-forgotten battery storage products performed extraordinarily well.
Tesla reported its Q1 production, delivery, and deployment figures for the first quarter of the year, and while many were less-than-excited about the automotive side, the Energy division performed well with 10.4 GWh of energy storage products deployed during the first quarter.
This was a 156 percent increase year-over-year and the company’s second-best quarter in terms of energy deployments to date. Only Q4 2024 was better, as 11 GWh was recorded.
Tesla Energy is frequently forgotten and not talked about enough. The company has continued to deploy massive energy storage projects across the globe, and as it recorded 31.5 GWh of deployments last year, 2025 is already looking as if it will be a record-setting year if it continues at this pace.
Tesla Megapacks to back one of Europe’s largest energy storage sites
Although Energy performed well, many investors are privy to that of the automotive division’s performance, which is where some concern lies. Tesla had a weak quarter for deliveries, missing Wall Street estimates by a considerable margin.
There are two very likely reasons as to why this happened: the first is Tesla’s switchover to the new Model Y at its production facilities across the globe. Tesla said it lost “several weeks” of production due to the updating of manufacturing lines as it rolled out a new version of its all-electric crossover.
Secondly, Tesla could be facing some pressure from pushback against the brand, which is what many analysts will say. Despite the publicity of attacks on Tesla drivers and their vehicles, as well as the company’s showrooms, it would be safe to assume that we will have a better picture painted of what the issue is in Q2 after the company reports numbers in July.
If Tesla is still struggling with lackluster delivery figures in Q2 after the Model Y is ramped and deliveries are more predictable and consistent, we could see where the argument for brand damage is legitimate. However, we are more prone to believe the Model Y, which accounts for most of Tesla’s sales, and its production ramp is likely the cause for what happened in Q1.
In what was a relatively bleak quarter, Tesla Energy still shines as the bright spot for the quarter.
Tesla has chosen the location of its latest manufacturing project, a facility that will churn out the Megapack, a large-scale energy storage system for solar energy projects. It has chosen Waller County, Texas, as the location of the new plant, according to a Commissioners Court meeting that occurred on Wednesday, March 5.
Around midday, members of the Waller County Commissioners Court approved a tax abatement agreement that will bring Tesla to its area, along with an estimated 1,500 jobs. The plant will be located at the Empire West Industrial Park in the Brookshire part of town.
Brookshire also plans to consider a tax abatement for Tesla at its meeting next Thursday.
The project will see a one million square-foot building make way for Tesla to build Megapack battery storage units, according to Covering Katy News, which first reported on the company’s intention to build a plant for its energy product.
CEO Elon Musk confirmed on the company’s Q4 2024 Earnings Call in late January that it had officially started building its third Megapack plant, but did not disclose any location:
“So, we have our second factory, which is in Shanghai, that’s starting operation, and we’re building a third factory. So, we’re trying to ramp output of the stationary battery storage as quickly as possible.”
Tesla plans third Megafactory after breaking energy records in 2024
The Megapack has been a high-demand item as more energy storage projects have started developing. Across the globe, regions are looking for ways to avert the loss of power in the event of a natural disaster or simple power outage.
This is where Megapack comes in, as it stores energy and keeps the lights on when the main grid is unable to provide electricity.
Vince Yokom of the Waller County Economic Development Partnership, commented on Tesla’s planned Megapack facility:
“I want to thank Tesla for investing in Waller County and Brookshire. This will be a state-of-the-art manufacturing facility for their Megapack product. It is a powerful battery unit that provides energy storage and support to help stabilize the grid and prevent outages.”
Tesla has had a lease on the building where it will manufacture the Megapacks since October 2021. However, it was occupied by a third-party logistics company that handled the company’s car parts.
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