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 starts hiring efforts for Texas Megafactory
Tesla’s Brookshire site is expected to produce 10,000 Megapacks annually, equal to 40 gigawatt hours of energy storage.
Tesla has officially begun hiring for its new $200 million Megafactory in Brookshire, Texas, a manufacturing hub expected to employ 1,500 people by 2028. The facility, which will build Tesla’s grid-scale Megapack batteries, is part of the company’s growing energy storage footprint.
Tesla’s hiring efforts for the Texas Megafactory are hinted at by the job openings currently active on the company’s Careers website.
Tesla’s Texas Megafactory
Tesla’s Brookshire site is expected to produce 10,000 Megapacks annually, equal to 40 gigawatt hours of energy storage, similar to the Lathrop Megafactory in California. Tesla’s Careers website currently lists over 30 job openings for the site, from engineers, welders, and project managers. Each of the openings is listed for Brookshire, Texas.
The company has leased two buildings in Empire West Business Park, with over $194 million in combined property and equipment investment. Tesla’s agreement with Waller County includes a 60% property tax abatement, contingent on meeting employment benchmarks: 375 jobs by 2026, 750 by 2027, and 1,500 by 2028, as noted in a report from the Houston Business Journal. Tesla is required to employ at least 1,500 workers in the facility through the rest of the 10-year abatement period.
Tesla’s clean energy boom
City officials have stated that Tesla’s arrival marks a turning point for the Texas city, as it highlights a shift from logistics to advanced clean energy manufacturing. Ramiro Bautista from Brookshire’s economic development office, highlighted this in a comment to the Journal.
“(Tesla) has great-paying jobs. Not just that, but the advanced manufacturing (and) clean energy is coming to the area,” he said. “So it’s not just your normal logistics manufacturing. This is advanced manufacturing coming to this area, and this brings a different type of job and investment into the local economy.”
Energy
Tesla and Samsung SDI in talks over new US battery storage deal: report
The update was related by industry sources and initially reported by South Korean news outlets.
Recent reports have suggested that Tesla and Samsung SDI are in talks over a potential partnership to supply batteries for large-scale energy storage systems (ESS).
The update was related by industry sources and initially reported by South Korean news outlets.
ESS batteries to be built at Samsung’s Indiana plant
As noted in a report from Korea JoongAng Daily, the demand for energy storage systems has been growing rapidly in North America, thanks in no small part to the surge in AI investments across numerous companies. With this in mind, Tesla has reportedly approached Samsung SDI about a potential battery supply deal.
The deal is reportedly worth over 3 trillion Korean won (approximately $2.11 billion) and will span three years, according to The Korea Global Economic Daily. A battery supply deal with Samsung SDI could make sense for Tesla as the company already has a grid-scale battery, the Megapack, which is perfect for industrial use. Samsung SDI could simply supply cells for the EV maker.
Production of the batteries would reportedly take place at Samsung SDI’s joint venture factory with Stellantis in Indiana, which is currently under construction. Samsung SDI recently announced plans to use part of that plant’s EV lines to produce cells for ESS, with a targeted capacity of 30 GWh by the end of next year.
Tesla and Samsung’s partnership
At present, only a handful of manufacturers, including Korea’s LG Energy Solution, Samsung SDI, SK On, and Japan’s Panasonic, are capable of producing energy storage-scale batteries domestically in the United States. A Samsung SDI official issued a comment about the matter, stating, “Nothing has been finalized regarding cooperation with Tesla.”
The possible energy storage system deal adds another layer to Tesla’s growing collaboration with Samsung, which is already in line as a partner in the upcoming production of Tesla’s AI5 and AI6 chips. Early sample manufacturing of the AI6 is expected to begin in South Korea, with mass production slated for Samsung’s Texas-based Taylor foundry when it starts operations.
The AI6 chip will power Tesla’s next wave of high-volume projects, including the Optimus humanoid robot and the autonomous Cybercab service. Musk has called the partnership with Samsung a “real collaboration,” adding that he personally plans to “walk the line” at the Taylor facility to speed up progress.
Energy
Tesla VP hints at Solar Roof comeback with Giga New York push
The comments hint at possible renewed life for the Solar Roof program, which has seen years of slow growth since its 2016 unveiling.
Tesla’s long-awaited and way underrated Solar Roof may finally be getting its moment. During the company’s Q3 2025 earnings call, Vice President of Energy Engineering Michael Snyder revealed that production of a new residential solar panel has started at Tesla’s Buffalo, New York facility, with shipments to customers beginning in the first quarter of 2026.
The comments hint at possible renewed life for the Solar Roof program, which has seen years of slow growth since its 2016 unveiling.
Tesla Energy’s strong demand
Responding to an investor question about Tesla’s energy backlog, Snyder said demand for Megapack and Powerwall continues to be “really strong” into next year. He also noted positive customer feedback for the company’s new Megablock product, which is expected to start shipping from Houston in 2026.
“We’re seeing remarkable growth in the demand for AI and data center applications as hyperscalers and utilities have seen the versatility of the Megapack product. It increases reliability and relieves grid constraints,” he said.
Snyder also highlighted a “surge in residential solar demand in the US,” attributing the spike to recent policy changes that incentivize home installations. Tesla expects this trend to continue into 2026, helped by the rollout of a new solar lease product that makes adoption more affordable for homeowners.
Possible Solar Roof revival?
Perhaps the most intriguing part of Snyder’s remarks, however, was Tesla’s move to begin production of its “residential solar panel” in Buffalo, New York. He described the new panels as having “industry-leading aesthetics” and shape performance, language Tesla has used to market its Solar Roof tiles in the past.
“We also began production of our Tesla residential solar panel in our Buffalo factory, and we will be shipping that to customers starting Q1. The panel has industry-leading aesthetics and shape performance and demonstrates our continued commitment to US manufacturing,” Snyder said during the Q3 2025 earnings call.
Snyder did not explicitly name the product, though his reference to aesthetics has fueled speculation that Tesla may finally be preparing a large-scale and serious rollout of its Solar Roof line.
Originally unveiled in 2016, the Solar Roof was intended to transform rooftops into clean energy generators without compromising on design. However, despite early enthusiasm, production and installation volumes have remained limited for years. In 2023, a report from Wood Mackenzie claimed that there were only 3,000 operational Solar Roof installations across the United States at the time, far below forecasts. In response, the official Tesla Energy account on X stated that the report was “incorrect by a large margin.”
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