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.
Energy
Tesla Megapack Megafactory in Texas advances with major property sale
Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet.
Tesla’s planned Megapack factory in Brookshire, Texas has taken a significant step forward, as two massive industrial buildings fully leased to the company were sold to an institutional investor.
In a press release, Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet. The properties are 100% leased to Tesla under a long-term agreement and were acquired by BGO on behalf of an institutional investor.
The two facilities, located at 100 Empire Boulevard in Brookshire, Texas, will serve as Tesla’s new Megafactory dedicated to manufacturing Megapack battery systems.
According to local filings previously reported, Tesla plans to invest nearly $200 million into the site. The investment includes approximately $44 million in facility upgrades such as electrical, utility, and HVAC improvements, along with roughly $150 million in manufacturing equipment.
Building 9, spanning roughly 1 million square feet, will function as the primary manufacturing floor where Megapacks are assembled. Building 10, covering approximately 600,000 square feet, will be dedicated to warehousing and logistics operations, supporting storage and distribution of completed battery systems.
Waller County Commissioners have approved a 10-year tax abatement agreement with Tesla, offering up to a 60% property-tax reduction if the company meets hiring and investment targets. Tesla has committed to employing at least 375 people by the end of 2026, increasing to 1,500 by the end of 2028, as noted in an Austin County News Online report.
The Brookshire Megafactory will complement Tesla’s Lathrop Megafactory in California and expand U.S. production capacity for the utility-scale energy storage unit. Megapacks are designed to support grid stabilization and renewable-energy integration, a segment that has become one of Tesla’s fastest-growing businesses.
Energy
Tesla meets Giga New York’s Buffalo job target amid political pressures
Giga New York reported more than 3,460 statewide jobs at the end of 2025, meeting the benchmark tied to its dollar-a-year lease.
Tesla has surpassed its job commitments at Giga New York in Buffalo, easing pressure from lawmakers who threatened the company with fines, subsidy clawbacks, and dealership license revocations last year.
The company reported more than 3,460 statewide jobs at the end of 2025, meeting the benchmark tied to its dollar-a-year lease at the state-built facility.
As per an employment report reviewed by local media, Tesla employed 2,399 full-time workers at Gigafactory New York and 1,060 additional employees across the state at the end of 2025. Part-time roles pushed the total headcount of Tesla’s New York staff above the 3,460-job target.
The gains stemmed in part from a new Long Island service center, a Buffalo warehouse, and additional showrooms in White Plains and Staten Island. Tesla also said it has invested $350 million in supercomputing infrastructure at the site and has begun manufacturing solar panels.
Empire State Development CEO Hope Knight said the agency was “very happy” with Giga New York’s progress, as noted in a WXXI report. The current lease runs through 2029, and negotiations over updated terms have included potential adjustments to job requirements and future rent payments.
Some lawmakers remain skeptical, however. Assemblymember Pat Burke questioned whether the reported job figures have been fully verified. State Sen. Patricia Fahy has also continued to sponsor legislation that would revoke Tesla’s company-owned dealership licenses in New York. John Kaehny of Reinvent Albany has argued that the project has not delivered the manufacturing impact originally promised as well.
Knight, for her part, maintained that Empire State Development has been making the best of a difficult situation.
“(Empire State Development) has tried to make the best of a very difficult situation. There hasn’t been another use that has come forward that would replace this one, and so to the extent that we’re in this place, the fact that 2,000 families at (Giga New York) are being supported through the activity of this employer. It’s the best that we can have happen,” the CEO noted.
Energy
Tesla launches Cybertruck vehicle-to-grid program in Texas
The initiative was announced by the official Tesla Energy account on social media platform X.
Tesla has launched a vehicle-to-grid (V2G) program in Texas, allowing eligible Cybertruck owners to send energy back to the grid during high-demand events and receive compensation on their utility bills.
The initiative, dubbed Powershare Grid Support, was announced by the official Tesla Energy account on social media platform X.
Texas’ Cybertruck V2G program
In its post on X, Tesla Energy confirmed that vehicle-to-grid functionality is “coming soon,” starting with select Texas markets. Under the new Powershare Grid Support program, owners of the Cybertruck equipped with Powershare home backup hardware can opt in through the Tesla app and participate in short-notice grid stress events.
During these events, the Cybertruck automatically discharges excess energy back to the grid, supporting local utilities such as CenterPoint Energy and Oncor. In return, participants receive compensation in the form of bill credits. Tesla noted that the program is currently invitation-only as part of an early adopter rollout.
The launch builds on the Cybertruck’s existing Powershare capability, which allows the vehicle to provide up to 11.5 kW of power for home backup. Tesla added that the program is expected to expand to California next, with eligibility tied to utilities such as PG&E, SCE, and SDG&E.
Powershare Grid Support
To participate in Texas, Cybertruck owners must live in areas served by CenterPoint Energy or Oncor, have Powershare equipment installed, enroll in the Tesla Electric Drive plan, and opt in through the Tesla app. Once enrolled, vehicles would be able to contribute power during high-demand events, helping stabilize the grid.
Tesla noted that events may occur with little notice, so participants are encouraged to keep their Cybertrucks plugged in when at home and to manage their discharge limits based on personal needs. Compensation varies depending on the electricity plan, similar to how Powerwall owners in some regions have earned substantial credits by participating in Virtual Power Plant (VPP) programs.
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