Energy
Tesla’s Director of Battery Engineering has reportedly left the company
Tesla’s Director of Battery Engineering, Jon Wagner, has reportedly left the company to focus on a new role at a battery and powertrain startup in Redwood City, CA. The report, first surfaced on Jalopnik, states that Wagner departed Tesla in October, despite his LinkedIn profile still showing that he’s currently employed by the Silicon Valley electric car maker.
Wagner, who’s been at Tesla since 2013, has served as Tesla’s Interim Director for Body Engineering, Computer Aided Engineering, Materials, and Battery Manufacturing Engineering throughout his near five-year term. During his time at Tesla, Wagner led the cost-down and product improvement effort for Model S and Model X’s battery pack. He also pushed research and development efforts that would ultimately translate into technological innovation for Tesla’s Powerwall and Model 3.
According to the United States Patent and Trademark Office (USPTO), Wagner is one of the inventors on a patent that was filed by Tesla for an Energy storage system with heat pipe thermal management. We’ve provided background for the patent as outlined by the USPTO.
Energy storage systems are used in a variety of contexts. For example, an electric vehicle can have a number of individual energy storage units (e.g., lithium-ion cells) stored inside a compartment, and this system is often referred to as a battery pack. Cells and other storage units generate heat during operation, such as during the charging process and when the cells are used to deliver energy, for example to the propulsion/traction system of the vehicle.
One cooling approach currently being used involves lithium-ion cells that are electrically connected by an anode terminal at the bottom of the cell, and a cathode terminal on top of the cell. These cells are arranged to all have the same orientation (e.g., “standing up”) with some spacing provided between all adjacent cells. The spacing facilitates a cooling conduit to run between the cells and be in contact with at least a portion of the outer surface of each cell. The cooling conduit has a coolant flowing through it, which removes thermal energy from inside the battery pack to some location on the outside, where heat can be safely dissipated. In order to provide a safe coolant flow, one must provide fluid connections into and out of the battery package, and the coolant path inside the battery pack must be reliable and have enough capacity.
Wagner’s departure comes at a critical time for Tesla, as it continues to work through battery production challenges being faced at the Gigafactory, and looks to prove to the consumer market that the company’s ‘holy grail’ vehicle, Model 3, will be able to reach volume production of 5,000 vehicles per week by the end of March 2018.
The Silicon Valley electric car maker noted in its third quarter 2017 earnings report that some of the manufacturing processes for Model 3’s battery modules needed to be redesigned, thus delaying the company’s original plan to begin volume production in December by three months. “To date, our primary production constraint has been in the battery module assembly line at Gigafactory 1, where cells are packaged into modules.” read the statement from Tesla in its update letter.
Tesla CEO Elon Musk provided additional background during a Q&A call with analysts, noting that much of the software that was needed for battery module production had to be redesigned. “We had to rewrite all of the software, from scratch. We managed to write 20 to 30 man-years of software in 4 weeks.” said Musk in explaining the level of reprogramming needed for the manufacturing robots.
As senior leaders at Tesla continue to depart, one has to question whether Wall Street’s love and hate stock and Silicon Valley’s sweetheart is biting off more than it can chew. Are these turnovers early indication that Tesla might be headed for a major downturn in 2018 or is it all par for the course?
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.
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