Energy
Tesla’s JB Straubel discusses batteries and scalability as new energy storage project is announced
Tesla Energy might not be attracting as much news as the company’s electric car business, but it has achieved some milestones of its own over the past few years. As of June 2018, Tesla had deployed a total of 1 GWh of energy storage worldwide, and during the company’s Q2 earnings call, Elon Musk and CTO JB Straubel reaffirmed Tesla’s commitment to growing its energy business over the coming years. Staubel even remarked that it might only be a matter of time before Tesla Energy overtakes the company’s electric car business in size.
Tesla’s batteries, such as the Powerpacks deployed on the Hornsdale Power Reserve in South Australia, are proving themselves as viable alternatives to fossil fuel-powered plants, and this is partly due to the fact that the energy industry hasn’t really evolved much over the past few decades. Tesla CTO JB Straubel highlighted this point in a recent segment with The Verge.
“You know, the electric grid hasn’t changed that much from 100-some years ago when Tesla and Edison were actually inventing it. Most people don’t realize, but it’s instantaneously matched — every time you turn on a light switch in your house, instantaneously, a power plant, somewhere, connected to that same grid, has to ramp up a little more power output to make the light operate,” Straubel said.
Most of the power used by cities today rely on large gas or coal-powered plants. In the United States, around 60% of power comes from fossil fuels, while ~20% comes from nuclear power stations. These large, baseload gas plants are consistent, but they are not very flexible. For example, when demand for power is too low, these plants lose money. When the demand gets too high, these facilities usually have to rely on faster, smaller plants called Peaker Plants to support the grid. Unfortunately, Peaker Plants are also traditionally dirtier than baseload gas plants. Straubel noted that this system causes the grid to get “dinged” on both sides.
“You get dinged when you don’t have enough load, and then when you have too much, you also get dinged inefficiently,” Straubel said.
It’s still going to take some time before clean energy solutions become capable of adequately supporting the power grid on their own. Renewable energy such as solar and wind, after all, are very promising, but they are not very consistent. Solar power can get compromised on a cloudy day, and wind power can be compromised when there is no wind. This is where battery storage comes in. Paired with renewable solutions, batteries such as Tesla’s industry-grade Powerpacks are able to store gathered energy and feed it to the grid when needed. Grid-scale chemical batteries only comprise a small part of the renewable energy market for now, but the use of batteries has been growing over the years. This, according to the Tesla CTO, would have been inconceivable ten years ago.
“That was kind of unheard of ten years ago. If you told someone that hey, a lithium-ion battery could do that sort of duty, storing solar energy every single day for ten years, they wouldn’t have believed it. I think the biggest thing is scalability. Batteries have this beautiful ability to vary economically, scale from gigawatt-hour-sized systems all the way down to 10 kilowatt-hours in your house,” Straubel said.
True to Tesla’s statement during its Q2 2018 earnings call, the list of the company’s energy projects continue to get longer. Just recently, Infigen Energy, an operator of renewable energy generation solutions in Australia, ordered a 25 MW/52 MWh energy storage system from Tesla. The batteries would be deployed at the 278.5MW Lake Bonney Wind Farm in South Australia and connected to the grid via the Mayurra substation. In a statement to Renew Economy, Australian Renewable Energy Agency (ARENA) chief Ivor Frischknecht expressed his optimism about the energy storage project.
“It is clear that grid-scale batteries have an important role in stabilizing the grid. The co-location of a battery with a wind farm provides an opportunity for Infigen to pursue regulatory changes that could improve revenue outcomes for grid-scale batteries, helping to become more competitive,” he said.
During Tesla’s 2018 Annual Shareholder Meeting, Tesla CEO Elon Musk mentioned that the company is getting closer to a battery breakthrough, with the company on pace to hit a battery cell cost of $100 per kWh by the end of 2018 depending on the stability of current commodity prices. Tesla also announced that production of residential energy products such as the Powerwall 2 and the Solar Roof tiles are set to see an increase within the next few quarters.
Tesla just trademarked ‘MEGAPOD’ with the United States Patent and Trademark Office (USPTO), its latest move in what seems to be a hint that the company is incredibly focused on its AI efforts and storage needs as compute increases.
The application carries serial number 99893717 and lists the applicant as Tesla, Inc., located at 1 Tesla Road, Austin, Texas 78725.
The filing remains in ‘live pending’ status, and it is a new application waiting for assignment to an examining attorney. It has not yet been published or registered.
Tesla just trademarked MEGAPOD
Summary:
“Modular data center hardware systems for artificial intelligence computing, comprised of computer servers, computer hardware for artificial intelligence processing, computer networking hardware, electrical power distribution units, and… pic.twitter.com/3l85DsKadl— Robin (@xdNiBoR) June 19, 2026
According to the official goods and services description in the application, Tesla describes ‘MEGAPOD’ as:
“Modular data center hardware systems for artificial intelligence computing, comprised of computer servers, computer hardware for artificial intelligence processing, computer networking hardware, electrical power distribution units, and cooling systems, sold as a unit; self-contained modular computing hardware systems for artificial intelligence workloads; integrated computer hardware platforms for artificial intelligence computing, namely, enclosures containing computer hardware, power distribution hardware, and cooling hardware, sold as a unit; downloadable software for monitoring, managing, optimizing, and regulating modular artificial intelligence computing hardware systems.”
This description specifies complete, self-contained modular units that integrate servers and specialized AI processing hardware with networking components, power distribution, and cooling systems. It also includes associated downloadable software for oversight and optimization of these systems. The language emphasizes hardware sold “as a unit” and enclosures that combine the necessary elements for AI computing workloads.
Tesla has an established history of developing and commercializing modular hardware systems. Its Megapack product line, for example, consists of utility-scale battery energy storage systems designed as containerized units for grid applications. The MEGAPOD filing follows a similar pattern of protecting a name for modular, integrated hardware platforms, this time focused on artificial intelligence computing infrastructure.
This could be an early move, especially as Tesla did not have trademark rights to the word ‘Cybercab,’ the name of its self-driving, ride-hailing-focused vehicle.
Trademark applications of this type allow companies to secure priority rights to a name for defined categories of goods and services. The USPTO examines applications for compliance with legal requirements, including distinctiveness and absence of conflicts with prior marks. If the application proceeds successfully through examination, publication, and any opposition period, it could result in a federal trademark registration providing nationwide protection. This is what Tesla’s obvious intention is with ‘MEGAPOD.’
Public reports and analysis suggest MEGAPOD could represent modular, container-style AI computing pods designed for easy deployment. These would bundle servers, AI accelerators, power systems, and cooling into self-contained units suitable for distributed AI workloads. This approach aligns with Tesla’s announced AI compute strategy.
In March 2026, Elon Musk outlined plans for “Digital Optimus” (also referred to as Macrohard), a joint Tesla-xAI project for AI agents capable of handling complex digital tasks. The plans include running these agents on Tesla’s AI4 hardware in parked vehicles as well as dedicated compute units installed at Supercharger stations, which collectively offer substantial unused electrical capacity.
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A modular hardware platform like the one described in the ‘MEGAPOD’ filing would support scalable, rapid deployment of such distributed compute resources. It could complement Tesla’s other AI infrastructure efforts, including the Dojo supercomputer used for training models and the development of AI systems for autonomous driving and robotics, by enabling edge or regional AI inference without reliance on traditional centralized data centers.
In a notable intersection of Big Tech powerhouses, Meta, led by Mark Zuckerberg, has partnered with Canadian energy infrastructure giant Enbridge on a significant renewable energy initiative that will rely on battery technology from Elon Musk’s Tesla.
The project, which was announced this week, marks another step in Meta’s aggressive push to power its expanding data center operations with clean energy, dispelling many of the complaints people have about them.
This new development is located near Cheyenne, Wyoming, and will feature a 365-megawatt (MW) solar farm paired with a 200 MW/1,600 megawatt-hour (MWh) battery energy storage system, also known as BESS. Tesla is providing the batteries for the project, valued at roughly $200 million.
The story was originally reported by Utility Dive.
This Wyoming project represents the first phase of Enbridge and Meta’s joint “Cowboy Project.” Once operational, it will deliver power to Meta’s regional data centers through Cheyenne Light, Fuel, and Power under Wyoming’s Large Power Contract Service tariff.
This tariff, originally developed in collaboration with Microsoft and Black Hills Energy, is designed specifically for large loads like data centers. It ensures that the renewable supply serves hyperscale customers without impacting retail electricity rates for other users.
The battery system will operate under a long-term tolling agreement, providing dispatchable capacity that enhances grid reliability. During periods of high demand, the utility can access the backup generation, addressing one of the key challenges of integrating large-scale renewables with the explosive growth of data center electricity demand driven by artificial intelligence.
This latest collaboration builds on prior joint efforts between Enbridge and Meta in Texas, including the 600 MW Clear Fork Solar, 152 MW Easter Wind, and 300 MW Cone Wind projects. Together with the Wyoming initiative, the companies have now partnered on roughly 1.6 gigawatts (GW) of combined solar, wind, and storage capacity.
The deal highlights the intensifying demand for reliable, low-carbon power from technology giants. Meta has committed to supporting its data center growth with renewable energy, joining peers like Microsoft and Google in seeking large-scale solutions. Enbridge’s Allen Capps described the project as “one of the larger utility-scale battery installations supporting U.S. data center operations and growth.”
The involvement of Tesla’s battery technology adds an intriguing layer, linking two of the world’s most prominent tech leaders—Zuckerberg and Musk—in the clean energy transition.
As data centers continue to drive unprecedented electricity load growth across the United States, projects like this one illustrate how hyperscalers are turning to strategic partnerships with traditional energy players and innovative storage solutions to meet both sustainability goals and reliability needs.
Elon Musk
Why SpaceX just made a $60 billion bet on AI coding ahead of historic IPO
SpaceX has secured an option to acquire Cursor AI for $60 billion ahead of its historic IPO.
SpaceX announced today it has struck a deal with AI coding startup Cursor, securing the option to acquire the company outright for $60 billion later this year, while committing $10 billion for joint development work in the interim. The announcement described the partnership as building “the world’s best coding and knowledge work AI,” and comes just days after Cursor was separately reported to be raising $2 billion at a valuation above $50 billion.
The move makes strategic sense given where each company currently stands. Cursor currently pays retail prices to Anthropic and OpenAI to the same companies competing directly against it with Claude Code and Codex. That means every dollar of revenue Cursor earns partially funds its own competition. With SpaceX bringing computational infrastructure to the Cursor platform, that could reduce Cursor’s dependence on OpenAI and Anthropic’s Claude AI as its providers. Access to SpaceX’s Colossus supercomputer, with compute equivalent to one million Nvidia H100 chips, gives Cursor the infrastructure to run and train its own models at a scale it could never afford independently. That one change restructures the entire unit economics of the business.
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Cursor’s $2 billion in annualized revenue and enterprise reach across more than half of Fortune 500 companies gives SpaceX something its xAI subsidiary currently lacks, which is a proven, fast-growing software business with real enterprise distribution.
For Cursor, SpaceX’s $10 billion in joint development funding is transformational. Cursor raised $3.3 billion across all of 2025 to reach that $2 billion in revenue. A single $10 billion commitment from SpaceX, even as a development payment rather than an acquisition, dwarfs everything Cursor has raised in its entire existence. That capital accelerates product development, enterprise sales infrastructure, and proprietary model training simultaneously.
The timing is deliberate. SpaceX filed confidentially with the SEC on April 1, 2026, targeting a June listing at a $1.75 trillion valuation, in what would be the largest public offering in history. The company is expected to begin its roadshow the week of June 8, with Bank of America, Goldman Sachs, JPMorgan, and Morgan Stanley serving as underwriters. Adding Cursor to the portfolio before that roadshow gives IPO investors a concrete enterprise software revenue story to price in, alongside rockets and satellite internet.
The deal also addresses a weakness that became visible after February’s xAI merger. Several xAI co-founders departed following that acquisition, and SpaceX had already hired two Cursor engineers, signaling where its AI talent strategy was heading. Cursor, for its part, faces a pricing disadvantage competing against Anthropic’s Claude Code.
Whether SpaceX exercises the full acquisition option before its IPO or after remains the open question. Either way, this deal reshapes what investors will be buying into when SpaceX goes public.
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