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Tesla may revisit vehicle-to-grid (V2G) bi-directional charging solution

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Tesla could soon revisit the idea of using its electric cars as a battery power source, likely as part of the company’s Vehicle-To-Grid (V2G) bi-directional solutions.

Musk’s update came as a response to a Twitter request from Cody Walker, a Tesla enthusiast, who inquired if the electric car maker would eventually introduce a feature where one car can provide battery power to another vehicle. Responding to the inquiry, Musk noted that previous Tesla vehicles had the capability to use its battery for outputting power. 

The Vehicle-To-Grid concept involves the use of electric car batteries to provide electricity back to the grid. The V2G model uses excess capacity from an electric car’s battery capacity to provide power to the electric grid in response to peak load demands. Such a system could result in several benefits, including lower power bills for homes adopting V2G.

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The idea of using electric cars as a battery power source has been suggested in the past, particularly during the time of the SolarCity acquisition. For one, Ben Hill, Tesla’s vice president for energy in Europe and Africa back in 2016, mentioned that vehicle-to-grid systems would be introduced and be functional “very, very soon.” Speaking to at the 2016 Intersolar Conference at Dubai World Trade Centre, Hill noted that V2G technology is quite promising, though it still needs some fine-tuning. 

“There is a lot of pilots programs going around the world right now. The ability for battery systems, which are connected to the grid, whether there in a vehicle or not, that ability is coming very, very soon,” he said.

Even teardown specialists critical of Tesla’s vehicles like the Model 3, such as Detroit veteran Sandy Munro, for example, have lauded Tesla’s progress in its battery technology. With this in mind, and with Elon Musk’s recent mention of a $100/kW breakthrough for battery cells in the near future, the time could very well be ripe for the electric car maker to revisit V2G solutions. Tesla’s battery packs, if any, are large enough for the task, considering that an average US household consumes roughly 30 kWh of electricity per day, and Tesla’s smallest battery pack in its vehicles stores 75 kWh of energy.

Vehicle-To-Grid bi-directional charging solutions have been explored by other carmakers in the past. Back in 2013, Nissan introduced a 6 kW bi-directional “LEAF-To-Home” system in Japan, which uses the electric car’s batteries to help lower the electricity bills of homes. As a means to demonstrate the potential of the technology, Nissan introduced the “Vehicle-To-Building” concept, which involved connecting six LEAFs to a building’s power distribution board, saving on power costs during peak hours. The potential savings of Nissan’s system was only around $5,000 per year for the Vehicle-To-Building model, but it was nonetheless a demonstration of how the technology could work.

The introduction of V2G solutions for Tesla vehicles might be coming at the right time for the electric car and energy company. The necessary components for the system, after all, are pretty much in place after Tesla merged with SolarCity. The former, after all, produces battery packs, while the latter provides homes with solar solutions. The companies’ technologies already came together for the Tesla Powerwall and the Solar Roof tiles. Thus, an idea like V2G would be a logical step forward for the company.

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There is a certain risk with V2G solutions, however. The technology, after all, could be abused by charging the electric cars at Superchargers (which are free) and using the stored energy for their homes. If Tesla could come up with a way to prevent this from happening, however, the company could very well have another killer system in its hands.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla launches first Virtual Power Plant in UK – get paid to use solar

Tesla has launched its first-ever Virtual Power Plant program in the United Kingdom.

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Credit: Tesla Energy | X

Tesla has launched its first-ever Virtual Power Plant program in the United Kingdom. This feature enables users of solar panels and energy storage systems to sell their excess energy back to the grid.

Tesla is utilizing Octopus Energy, a British renewable energy company that operates in multiple markets, including the UK, France, Germany, Italy, Spain, Australia, Japan, New Zealand, and the United States, as the provider for the VPP launch in the region.

The company states that those who enroll in the program can earn up to £300 per month.

Tesla has operated several VPP programs worldwide, most notably in California, Texas, Connecticut, and the U.S. territory of Puerto Rico. This is not the first time Tesla has operated a VPP outside the United States, as there are programs in Australia, Japan, and New Zealand.

This is its first in the UK:

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Tesla is not the only company that is working with Octopus Energy in the UK for the VPP, as it joins SolarEdge, GivEnergy, and Enphase as other companies that utilize the Octopus platform for their project operations.

It has been six years since Tesla launched its first VPP, as it started its first in Australia back in 2019. In 2024, Tesla paid out over $10 million to those participating in the program.

Tesla VPP program in California hits new capacity milestone

Participating in the VPP program that Tesla offers not only provides enrolled individuals with the opportunity to earn money, but it also contributes to grid stabilization by supporting local energy grids.

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Tesla Lathrop Megafactory celebrates massive Megapack battery milestone

The Tesla Megapack is the backbone of Tesla Energy’s battery deployments.

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Credit: Tesla Megapack/X

The Tesla Lathrop Megafactory recently achieved a new milestone. As per the official Tesla Megapack account on X, the Lathrop Megafactory has produced its 15,000th Megapack 2 XL battery.

15,000 Megapack Batteries

Tesla celebrated the milestone with a photo of the Lathrop Megafactory team posing with a freshly produced Megapack battery. To commemorate the event, the team held balloons that spelled out “15,000” as they posed for the photo.

The Tesla Megapack is the backbone of Tesla Energy’s battery deployments. Designed for grid-scale applications, each Megapack offers 3.9 MWh of energy and 1.9 MW of power. The battery is extremely scalable, making it perfect for massive energy storage projects.

https://twitter.com/Tesla_Megapack/status/1932578971700638203

More Megafactories

The Lathrop Megafactory is Tesla’s first dedicated facility for its flagship battery storage system. It currently stands as the largest utility-scale battery factory in North America. The facility is capable of producing 10,000 Megapack batteries every year, equal to 40 GWh of clean energy storage.

Thanks to the success of the Megapack, Tesla has expanded its energy business by building and launching the Shanghai Megafactory, which is also expected to produce 40 GWh of energy storage per year. The ramp of the Shanghai Megafactory is quite impressive, with Tesla noting in its Q1 2025 Update Letter that the Shanghai Megafactory managed to produce over 100 Megapack batteries in the first quarter alone.

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Tesla Energy’s Potential

During the first quarter earnings call, CEO Elon Musk stated that the Megapack is extremely valuable to the energy industry. 

“The Megapack enables utility companies to output far more total energy than would otherwise be the case… This is a massive unlock on total energy output of any given grid over the course of a year. And utility companies are beginning to realize this and are buying in our Megapacks at scale,” Musk said.

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Tesla Megapacks powers the xAI Colossus supercomputer

Tesla Megapacks step in to stabilize xAI’s Colossus supercomputer, replacing natural gas turbines. Musk’s ventures keep intertwining.

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(Credit: Tesla Megapack)

Tesla Megapack batteries will power the xAI Colossus supercomputer in Memphis to ensure power stability. The collaboration between Tesla and xAI highlights the synergy among Elon Musk’s ventures.

The artificial intelligence startup has integrated Tesla Megapacks to manage outages and demand surges, bolstering the facility’s reliability. The Greater Memphis Chamber announced that Colossus, recently connected to a new 150-megawatt electric substation, is completing its first construction phase. This transition addresses criticism from environmental justice groups over the initial use of natural gas turbines.

“The temporary natural gas turbines that were being used to power the Phase I GPUs prior to grid connection are now being demobilized and will be removed from the site over the next two months.

“About half of the operating turbines will remain operating to power Phase II GPUs of xAI until a second substation (#22) already in construction is completed and connected to the electric grid, which is planned for the Fall of 2025, at which time the remaining turbines will be relegated to a backup power role,” the Chamber stated.

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xAI’s rapid development of Colossus reflects its ambition to advance AI capabilities, but the project has faced scrutiny for environmental impacts. The shift to Megapacks and grid power aims to mitigate these concerns while ensuring operational continuity.

The Megapack deployment underscores the collaboration among Musk’s companies, including Tesla, SpaceX, Neuralink, and The Boring Company. Tesla appears to be the common link between all of Musk’s companies. For example, The Boring Company built a tunnel in Giga, Texas. In addition, Musk has hinted at a potential collaboration between the Tesla Optimus Bot and Neuralink. And from January 2024 to February 2025, xAI invested $230 million in Megapacks, per a Tesla filing.

Tesla Energy reported a 156% year-over-year increase in Q1 2025, deploying 10.4 GWh of storage products, including Megapacks and Powerwalls. Tesla’s plans for a new Megapack factory in Waller County, Texas, which is expected to create 1,500 jobs in the area, further signal its commitment to scaling energy solutions.

As xAI leverages Tesla’s Megapacks to power Colossus, the integration showcases Musk’s interconnected business ecosystem. The supercomputer’s enhanced stability positions xAI to drive AI innovation, while Tesla’s energy solutions gain prominence, setting the stage for broader technological and economic impacts.

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