

Energy
Elon Musk pushes more Tesla battery installs as blackout hits Puerto Rico
Amid Puerto Rico’s recent islandwide blackout, Elon Musk stated that the Tesla team would be working to expand its existing battery and solar installations 24/7 to support the country’s damaged power grid better.
In an announcement on Wednesday, Puerto Rico’s Electric Power Authority stated that the whole island is without electricity and that it would likely take around 24 to 36 hrs before power is restored. Puerto Rico power officials further noted that they are prioritizing the restoration of electricity in key locations first, such as hospitals and banking centers. The recent islandwide blackout came not long after another power outage affected around 840,000 residents last week.
Responding to the news on Twitter, Musk stated that Tesla batteries have gone live and are delivering power to 662 locations in Puerto Rico. According to Musk, the Tesla team is working around the clock to activate “several hundred” more.
Tesla batteries are currently live & delivering power at 662 locations in Puerto Rico. Team is working 24/7 to activate several hundred more. https://t.co/OMu8qKJvLy
— Elon Musk (@elonmusk) April 18, 2018
Not long after the billionaire entrepreneur’s Twitter announcement, Tesla’s official Twitter account shared photos of the company’s solar installations in the island as well, stating that there are currently over 1,000 Tesla batteries that have been activated in 662 locations so far. Echoing Musk’s statement, the electric car and energy company noted that more projects are underway.
Puerto Rico has been dealing with a power crisis since being hit by Hurricane Maria almost 7 months ago. When the Category 4 hurricane made landfall, it devastated the country’s entire power grid, leaving its roughly 3.5 million residents without power. Amid the relief efforts to aid the country, Tesla began shipping some of its Powerwall 2 residential battery storage units and solar panels to help restore electricity to Puerto Rico’s residents. Musk also made a personal donation to the country worth $250,000.
- Tesla’s solar system in Puerto Rico. [Credit: Tesla]
- Tesla’s solar system in Puerto Rico. [Credit: Tesla]
Musk noted that its batteries could be used by the country to help support its damaged grid, considering that it had already done similar projects for “many smaller islands around the world” in the past. The Tesla CEO further stated that while there is no scalability limit when it comes to battery storage and solar solutions, the decision to pursue such a project would ultimately lie in the hands of the Puerto Rico government.
Puerto Rico Governor Ricardo Rossello expressed interest in Musk’s Twitter statement, suggesting that the island nation could become Tesla’s flagship energy project. Since then, Tesla has been hard at work installing its batteries and its photovoltaic systems to locations across the country; and if Musk’s recent announcement is any indication, more installations will likely happen soon.
As we noted in a previous report, if Tesla aims to supply 40% of the island’s energy through solar and battery solutions, the cost of the project would be substantial. Considering the rates of Tesla’s solar panels and battery packs, the cost of materials would roughly come at $9.58 billion. Factoring in an estimated 7% interest rate and Puerto Rico’s rather poor credit rating and high debt, the project could ultimately cost over $21 billion over 20 years.
Energy
Tesla inks multi-billion-dollar deal with LG Energy Solution to avoid tariff pressure
Tesla has reportedly secured a sizable partnership with LGES for LFP cells, and there’s an extra positive out of it.

Tesla has reportedly inked a multi-billion-dollar deal with LG Energy Solution in an effort to avoid tariff pressure and domesticate more of its supply chain.
Reuters is reporting that Tesla and LGES, a South Korean battery supplier of the automaker, signed a $4.3 billion deal for energy storage system batteries. The cells are going to be manufactured by LGES at its U.S. factory located in Michigan, the report indicates. The batteries will be the lithium iron phosphate, or LFP, chemistry.
Tesla delivers 384,000 vehicles in Q2 2025, deploys 9.6 GWh in energy storage
It is a move Tesla is making to avoid buying cells and parts from overseas as the Trump White House continues to use tariffs to prioritize domestic manufacturing.
LGES announced earlier today that it had signed a $4.3 billion contract to supply LFP cells over three years to a company, but it did not identify the customer, nor did the company state whether the batteries would be used in automotive or energy storage applications.
The deal is advantageous for both companies. Tesla is going to alleviate its reliance on battery cells that are built out of the country, so it’s going to be able to take some financial pressure off itself.
For LGES, the company has reported that it has experienced slowed demand for its cells in terms of automotive applications. It planned to offset this demand lag with more projects involving the cells in energy storage projects. This has been helped by the need for these systems at data centers used for AI.
During the Q1 Earnings Call, Tesla CFO Vaibhav Taneja confirmed that the company’s energy division had been impacted by the need to source cells from China-based suppliers. He went on to say that the company would work on “securing additional supply chain from non-China-based suppliers.”
It seems as if Tesla has managed to secure some of this needed domestic supply chain.
Energy
Tesla Shanghai Megafactory produces 1,000th Megapack for export to Europe
The Shanghai Megafactory was able to hit this milestone less than six months after it started producing the Megapack.

Tesla Energy has announced a fresh milestone for its newest Megapack factory. As per the electric vehicle maker, the Shanghai Megafactory has successfully produced its 1,000th Megapack battery.
The facility was able to hit this milestone less than six months after it started producing the grid-scale battery system.
New Tesla Megapack Milestone
As per Tesla Asia in a post on its official accounts on social media platform X, the 1,000th Megapack unit that was produced at the Shanghai Megafactory would be exported to Europe. As noted in a CNEV Post report, Tesla’s energy products are currently deployed in over 65 countries and regions globally. This allows Tesla Energy to compete in energy markets that are both emerging and mature.
To commemorate the 1,000th Megapack produced at the Shanghai Megafactory, the Tesla China team posted with the grid-scale battery with celebratory balloons that spelled “Megapack 1000.” The milestone was celebrated by Tesla enthusiasts on social media, especially since the Shanghai Megafactory only started its operations earlier this year.
Quick Megafactory Ramp
The Shanghai Megafactory, similar to Tesla’s other key facilities in China, was constructed quickly. The facility started its construction on May 23, 2024, and it was hailed as Tesla’s first entry storage project outside the United States. Less than a year later, on February 11, 2025, the Shanghai Megafactory officially started producing Megapack batteries. And by March 21, 2025, Tesla China noted that it had shipped the first batch of Megapack batteries from the Shanghai plant to foreign markets.
While the Shanghai Megafactory is still not at the same level of output as Tesla’s Lathrop Megafactory, which produces about 10,000 Megapacks per year, its ramp seems to be quite steady and quick. It would then not be surprising if Tesla China announces the Shanghai Megafactory’s 2,000th Megapack milestone in the coming months.
Energy
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.

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:
Our first VPP in the UK
You can get paid to share your energy – store excess energy in your Powerwall & sell it back to the grid
You’re making £££ and the community is powered by clean energy
Win-win pic.twitter.com/evhMtJpgy1
— Tesla UK (@tesla_uk) July 17, 2025
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.
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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