Energy
Tesla pushes battery improvements amid renewable energy’s attack on coal
In the spirit of constant innovation, Tesla’s batteries and energy storage products continue to see improvements over time. From improving energy density to more efficiencies in manufacturing, Tesla’s energy products are evolving just as fast as the company’s electric cars. Such improvements were teased by Tesla President of Automotive Jerome Guillen. In a recent interview with CNBC, Guillen remarked that the company’s batteries are always dynamic, and are in a constant process of improvement.
“We are improving the design of the cell. The design of the cell is not frozen. It evolves, and we have a nice roadmap of technology improvements for the coming years,” Guillen said.
Tesla’s upcoming ramp of its energy products is coming at the perfect time. Amidst Tesla’s push to increase the production of its energy products, as well as the company’s efforts to achieve $100 per kWh in battery cell costs, the renewable energy market itself is also making huge strides.
The results of a recent analysis from research firm Lazard has revealed that wind and solar energy costs in the United States have finally reached a point where they are becoming more and more competitive with traditional power sources, such as those derived from coal. And that’s without tax subsidies. With subsidies in the picture, the cost advantages of renewable energy over coal are even more notable.
Lazard’s levelized cost of energy (LCOE) analysis concluded that US onshore wind energy costs now average between $26/MWh and $56/MWh without subsidies. Solar energy, on the other hand, averages around $36/MWh and $44/MWh with no subsidies involved. In comparison, the average cost of US existing coal plants is between $27/MWh and $45/MWh.
With such competitive costs, renewable energy is currently challenging coal generation. And the movement is spreading — in the Upper Midwest, Xcel Energy’s utilities have revealed plans to retire about 50% of their coal-fired capacity in the coming years. To replace these facilities, Xcel is looking to wind energy. In a statement to Utility Drive, Xcel CEO Ben Fowke stated that the lowering price of sustainable energy is a large factor for the company’s push towards wind power.
“We’re looking at [wind energy prices] in the low teens to low 20s [in dollars/MWh] — not starting prices, but levelized across the 25-year life of the project. That beats gas, even at today’s prices,” he said.
Considering that wind and solar power are not ever-present, though, the key to a shift to sustainability lies in solutions such as industry-grade battery storage systems, which are capable of storing and distributing energy. This is where Tesla Energy comes in. In a statement to the San Francisco Chronicle back in September, Tesla CTO JB Straubel noted that grid-scale battery solutions such as Tesla’s Powerpacks, which are easily scaled and are reliable, are starting to become an ideal alternative to fossil fuel-powered solutions.
“I think what we’ll see is we won’t build many new peaker plants, if any. Already what we’re seeing happening is the number of new ones being commissioned is drastically lower, and batteries are already outcompeting natural gas peaker plants,” Straubel said.
Such changes are becoming more notable in the United States. Just recently, the state of California announced that it had approved PG&E’s proposal to build a record-breaking 2.2 GWh battery storage project to replace three gas-powered plants. In South Dakota, BP plc has also installed a Tesla battery storage system in at one of its wind energy farms. While BP’s 212 KW/840 kWh battery storage system is not as large-scale as the recently announced CA project, the company has noted that the installation could be expanded in the future.
Wood Mackenzie, a research firm, estimates that the world’s shift from fossil fuels to renewables could happen as early as 2035. At this time, the company expects electric cars, wind power, and solar power to be more prevalent than gasoline and diesel-powered vehicles, as well as fossil fuel-based electricity. Wood Mackenzie notes that the shift towards renewables will hit a tipping point when EVs and clean energy solutions achieve a 20% market share. With this in mind, Tesla’s ramp of its energy business could not come faster.
Energy
Tesla Powerwall distribution expands in Australia
Inventory is expected to arrive in late February and official sales are expected to start mid-March 2026.
Supply Partners Group has secured a distribution agreement for the Tesla Powerwall in Australia, with inventory expected to arrive in late February and official sales beginning in mid-March 2026.
Under the new agreement, Supply Partners will distribute Tesla Powerwall units and related accessories across its national footprint, as noted in an ecogeneration report. The company said the addition strengthens its position as a distributor focused on premium, established brands.
“We are proud to officially welcome Tesla Powerwall into the Supply Partners portfolio,” Lliam Ricketts, Co-Founder and Director of Innovation at Supply Partners Group, stated.
“Tesla sets a high bar, and we’ve worked hard to earn the opportunity to represent a brand that customers actively ask for. This partnership reflects the strength of our logistics, technical services and customer experience, and it’s a win for installers who want premium options they can trust.”
Supply Partners noted that initial Tesla Powerwall stock will be warehoused locally before full commercial rollout in March. The distributor stated that the timing aligns with renewed growth momentum for the Powerwall, supported by competitive installer pricing, consumer rebates, and continued product and software updates.
“Powerwall is already a category-defining product, and what’s ahead makes it even more compelling,” Ricketts stated. “As pricing sharpens and capability expands, we see a clear runway for installers to confidently spec Powerwall for premium residential installs, backed by Supply Partners’ national distribution footprint and service model.”
Supply Partners noted that a joint go-to-market launch is planned, including Tesla-led training for its sales and technical teams to support installers during the home battery system’s domestic rollout.
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.
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