Electric vehicles are part of a sustainable energy/transportation ecosystem that also includes charging infrastructure, smart grid technology and renewable energy. The key that ties all of these components together is energy storage. Storage, specifically batteries, is the enabling technology that makes modern EVs possible, and that makes renewable energy viable. Battery storage also provides a number of other benefits for the electrical grid, such as load balancing and frequency regulation.
Unsurprisingly, Tesla understood this synergy early in the game, and its Tesla Energy division has carved out a lucrative side business selling stationary battery storage to electric utilities, as well as residential and commercial energy customers (actually, “side business” may not be quite the right description, as Elon Musk has predicted that Tesla’s energy business may someday be bigger than its car business).
As a recent article in SingularityHub explains, other auto manufacturers see the possibilities and are also beginning to enter into the stationary storage market. BMW recently signed a contract to incorporate 500 i3 battery packs into the UK’s national electrical grid. Renault is developing a home energy storage product based on its Zoe batteries. Toyota and Nissan have both announced plans to offer energy storage, and Audi is one of several brands that are exploring the possibilities with pilot projects.
Above: Nissan hired actress Margot Robbie to showcase its home energy “xStorage” product along with its all-electric Nissan Leaf (Youtube: Motorward)
It’s a natural move for the automakers, who are steadily securing supplies of batteries for the EVs they’ll soon be building in volume. Volkswagen recently announced plans to invest $48 billion on battery tech over the next few years. If companies are going to be making large amounts of batteries, it simply makes sense to explore other markets that require storage.
Of course, Tesla has been doing just that for a few years now. The California trendsetter has scored some highly-publicized successes with utility-scale projects in Australia, and its Powerpacks are becoming popular for off-grid applications around the world.
But there’s more to this than just opening new markets for batteries. Tesla’s vehicles are seen as part of an ecosystem of products designed to function smoothly together. As Elon Musk explained to Fast Company, “This is the integrated future. You’ve got an electric car, a Powerwall, and a Solar Roof.” As Apple and Amazon have demonstrated, this can be an unbeatable strategy – if a customer is driving a Model S, and is impressed with the company, she’ll be that much more likely to buy a solar electric system (and why not a flamethrower, too?) from Tesla as well. The legacy automakers would be foolish to ignore the possibilities.
In dollar terms, those possibilities are staggering. Markets Insider predicts that the market for grid-connected battery storage will grow from $3.3 billion in 2016 to $14 billion by 2021, and probably well over $100 billion by 2030 – a compound annual growth rate of around 34 percent.
It’s not even necessary to produce batteries specifically for the stationary storage market. As EV batteries age, they gradually lose capacity, and drivers, who crave maximum range, will want to replace them. However, once a superannuated battery is no longer suitable for use in a vehicle, it can still be quite useful in a stationary storage application. Several automakers are investigating the possibilities of “second-life” EV batteries.
===
Note: Article originally published on evannex.com by Charles Morris; Source: SingularityHub
Energy
Tesla Lathrop Megafactory celebrates massive Megapack battery milestone
The Tesla Megapack is the backbone of Tesla Energy’s battery deployments.
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.
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.
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.
Energy
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.
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.
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.
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.
EV fans urge Tesla to acquire Unplugged Performance for edge in fleet and security industry
Tesla debuts hands-free Grok AI with update 2025.26: What you need to know
Tesla cleared in Canada EV rebate investigation
-
Elon Musk2 weeks agoTesla investors will be shocked by Jim Cramer’s latest assessment
-
Elon Musk2 days agoxAI launches Grok 4 with new $300/month SuperGrok Heavy subscription
-
Elon Musk5 days agoElon Musk confirms Grok 4 launch on July 9 with livestream event
-
News1 week agoTesla Model 3 ranks as the safest new car in Europe for 2025, per Euro NCAP tests
-
Elon Musk2 weeks agoA Tesla just delivered itself to a customer autonomously, Elon Musk confirms
-
Elon Musk1 week agoxAI’s Memphis data center receives air permit despite community criticism
-
News2 weeks agoXiaomi CEO congratulates Tesla on first FSD delivery: “We have to continue learning!”
-
News2 weeks agoTesla sees explosive sales growth in UK, Spain, and Netherlands in June