Energy
Tesla takes first steps to become an electric utility, starting with the UK
It appears that Tesla has taken a significant step forward in its efforts to become a full-blown energy provider. Just this past Tuesday, Tesla Energy production sales director Evan Rice applied the UK’s gas and Electricity Markets Authority, the country’s energy regulator, for a license to generate electricity.
Tesla did not disclose why it is applying for such a license, though an industry insider cited by The Telegraph has stated that the company may be planning on introducing its Autobidder platform in the UK. Tesla developed Autobidder to function as a real-time trading and control platform that enables power producers to monetize their battery assets.
Autobidder is already in use in one of Tesla’s most notable battery storage installations. According to the electric car maker’s official page for its Autobidder platform, the system is currently operating at the Hornsdale Power Reserve in South Australia, one of the world’s biggest battery installations. The big battery in Hornsdale has been a runaway success since it was deployed, providing quick, stable backup to the grid and helping residents in the region save money on their power bills.
Tesla, for its part, has declined to comment on why it has decided to apply for a license to generate electricity in the UK. That said, Martin Young, a power analyst at Investec, stated that it makes sense for Tesla to expand its business. “If you are a manufacturer of electric vehicles, you’d think they’d be interested in offering an energy plan too,” he said.
Tesla’s recent strategies in the UK bode well for the eventual expansion of the company’s Energy business. Tesla Energy has, for the most part, taken a background role compared to the company’s electric car division. Nevertheless, Tesla Energy has a lot of untapped potential. A portion of this is because battery storage systems, including the grid-scale Megapack, are notably simpler products than electric vehicles, and they have the potential to be profitable.
While Tesla Energy has been an understated business for some time now, the division has made substantial progress since the year began. Despite the outbreak of the coronavirus and the eventual halt to the operations in Gigafactory New York and Gigafactory Nevada, Tesla Energy was able to achieve a series of milestones nonetheless.
These included the production of 4 MW worth of Solarglass Roof V3 every week, which is enough to accommodate 1,000 home installations weekly. The demand for the Megapack, a 3 MWh grid-scale battery, is also above the company’s capability to manufacture it. Furthermore, the 100,000th Powerwall installation was also conducted in the first quarter, partly thanks to about 40% of Tesla Solar customers purchasing the home battery unit.
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.
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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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