Over the course of this year, Tesla’s executives such as CEO Elon Musk and CTO JB Straubel have remarked that the company’s energy business is growing at a rapid rate. Recent reports from Buffalo, NY indicate that this growth will soon be evident in the operations of Tesla’s Gigafactory 2, particularly since the production ramp of the company’s flagship solar product — the Solar Roof tiles — is now going through its initial phases.
Tesla recently invited local news outlets on a guided tour of Gigafactory 2. The tour was the first time reporters were given access to the 1.2-million sq ft facility, and while the media were not allowed to film anything inside the factory itself, Tesla did provide a number of updates about Gigafactory 2 and the Solar Roof tiles. First off, Tesla noted that there are currently around 800 employees (comprised of Tesla and Panasonic workers) working on the site. This number is ahead of the facility’s targets, which require 500 workers to be employed on the site by April 2019. Gigafactory 2 is also running 24/7, with workers alternating 12-hour shifts.
The guided tour was led by director of operations Ryan Nungesser, who is in charge of Gigafactory 2. Nungesser, a former US marine platoon commander, was employed by the electric car and energy company after his tenure at Boston Scientific, where he worked several roles including Director of Production and Director of Materials Management. While Elon Musk himself has reportedly not visited the facility in person, the former marine and the CEO regularly keep in touch through weekly webcast meetings. Addressing the local media personnel on the tour, Nungesser remarked that the facility maintains a collaborative atmosphere, thanks to Tesla’s flat hierarchy.
Tesla reportedly had to work through notable bottlenecks in the development, testing, and production of the Solar Roof tiles, which are designed to be incredibly durable and last the lifetime of a house. Dan Miner, a reporter for Buffalo Business First, nevertheless noted that Tesla is confident that it currently has a “repeatable, efficient process” that would allow the company to begin the production of the Solar Roof tiles in greater volumes. Tesla declined to give details on the current output of the facility, though the company has stated that there is a long waiting list of Solar Roof customers that would likely keep the factory busy for years.
As the facility prepares to ramp the production of the Solar Roof tiles, Tesla managers in the facility are expecting the addition of new manufacturing lines. Another hiring ramp is also expected in the near future. Corey Leone, a facilities maintenance technician at Gigafactory 2 who previously worked at a coal-burning plant in Dunkirk, noted to Rochester First News that his experience over the past three years has been quite positive.
“To be able to come here and do green energy, to go from coal to this, it’s been an amazing journey. I’ve been here almost three years. It’s been a fantastic ride,” he said.
Tesla’s Solar Roof tiles are a pivotal part of the company’s plan to promote “sustainable energy independence.” While the cost of the Solar Roof tiles is far higher than conventional solar panels for now, Tesla noted in its Q2 2017 Update Letter that the shingles, which look like regular roofing materials but are capable of capturing power from the sun, would be far more affordable in the future.
“Adopting solar has historically required a degree of aesthetic compromise, but Solar Roof provides clean energy from a better-looking roof. Furthermore, Solar Roof is more affordable than conventional roofs because in most cases, it ultimately pays for itself by reducing or eliminating a home’s electricity bill,” Tesla noted.
As mentioned by Elon Musk during the third quarter earnings call, the production of the Solar Roof tiles is taking longer to ramp due to the shingles’ long development cycle. Musk did state, though, that the production of the Solar Roof tiles should hit its stride sometime next year.
“We’ll also start going into volume production of the solar tile roof next year. That’s quite a long development cycle for — because anything that’s roof has got to last 30 years. So even if you do accelerate life testing as fast as possible, there’s still a minimum amount of time required to do that. And there’s a lot of engineering that goes into how do you put on the solar tile roof with a — and not be really labor-intensive in doing so. So there’s a lot of engineering not just in the tile but in the way it’s done,” Musk said.
Energy
Tesla’s new Megablock system can power 400,000 homes in under a month
Tesla also unveiled the Megapack 3, the latest iteration of its flagship utility scale battery.
Tesla has unveiled the Megablock and Megapack 3, the latest additions to its industrial-scale battery storage solution lineup.
The products highlight Tesla Energy’s growing role in the company, as well as the division’s growing efforts to provide sustainable energy solutions for industrial-scale applications.
Megablock targets speed and scale
During the “Las Megas” event in Las Vegas, Tesla launched Megablock, a pre-engineered medium-voltage block designed to integrate Megapack 3 units in a plug-and-play system. Capable of 20 MWh AC with a 25-year life cycle and more than 10,000 cycles, the Megablock could achieve 91% round-trip efficiency at medium voltage, inclusive of auxiliary loads.
Tesla emphasized that Megablock can be installed 23% faster with up to 40% lower construction costs. The platform eliminates above-ground cabling through a new flexible busbar assembly and delivers site-level density of 248 MWh per acre. With Megablock, Tesla is also aiming to commission 1 GWh in just 20 business days, or enough to power 400,000 homes in less than a month.
“With Megablock, we are targeting to commission 1 GWh in 20 business days, which is the equivalent of bringing power to 400,000 homes in less than a month. It’s crazy. How are we planning to do that? Like most things at Tesla, we are ruthlessly attacking every opportunity to save our customers time, simplify the process, remove steps, (and) automate as much as we can,” the company said.
Megapack 3 is all about simplicity
The Megapack 3 is Tesla’s next-generation utility battery, designed with a simplified architecture that cuts 78% of connections compared to the previous version. Its thermal bay is drastically simplified, and it uses a Model Y heat pump on steroids. The battery weighs about 86,000 pounds and holds 5 MWh of usable AC energy. Tesla engineers incorporated a larger battery module and a new 2.8-liter LFP cell co-developed with the company’s cell team.
The Megapack 3 is designed for serviceability, and it features easier front access and no roof penetrations. About 75% of Megapack 3’s total mass is battery cells, with individual modules weighing as much as a Cybertruck. It’s also tough, with an ambient operating temperature range from -40C to 60C. This should allow the Megapack 3 to operate optimally from the coldest to the hottest regions on the planet.
Production is set to begin at Tesla’s Houston Megafactory in late 2026, with planned capacity of 50 GWh per year. Additional supply will come from Tesla’s 7 GWh LFP facility in Nevada, which is expected to open in 2025, as well as with third-party partners.
Energy
Tesla Energy is the world’s top global battery storage system provider again
Tesla Energy captured 15% of the battery storage segment’s global market share in 2024.
Tesla Energy held its top position in the global battery energy storage system (BESS) integrator market for the second consecutive year, capturing 15% of global market share in 2024, as per Wood Mackenzie’s latest rankings.
Tesla Energy’s lead, however, is shrinking, as Chinese competitors like Sungrow are steadily increasing their global footprint, particularly in European markets.
Tesla Energy dominates in North America, but its lead is narrowing globally
Tesla Energy retained its leadership in the North American market with a commanding 39% share in 2024. Sungrow, though still ranked second in the region, saw its share drop from 17% to 10%. Powin took third place, even if the company itself filed for bankruptcy earlier this year, as noted in a Solar Power World report.
On the global stage, Tesla Energy’s lead over Sungrow shrank from four points in 2023 to just one in 2024, indicating intensifying competition. Chinese firm CRRC came in third worldwide with an 8% share.
Wood Mackenzie ranked vendors based on MWh shipments with recognized revenue in 2024. According to analyst Kevin Shang, “Competition among established BESS integrators remains incredibly intense. Seven of the top 10 vendors last year struggled to expand their market share, remaining either unchanged or declining.”
Chinese integrators surge in Europe, falter in U.S.
China’s influence on the BESS market continues to grow, with seven of the global top 10 BESS integrators now headquartered in the country. Chinese companies saw a 67% year-over-year increase in European market share, and four of the top 10 BESS vendors in Europe are now based in China. In contrast, Chinese companies’ market share in North America dropped more than 30%, from 23% to 16% amid Tesla Energy’s momentum and the Trump administration’s policies.
Wood Mackenzie noted that success in the global BESS space will hinge on companies’ ability to adapt to divergent regulations and geopolitical headwinds. “The global BESS integrator landscape is becoming increasingly complex, with regional trade policies and geopolitical tensions reshaping competitive dynamics,” Shang noted, pointing to Tesla’s maintained lead and the rapid ascent of Chinese rivals as signs of a shifting industry balance.
“While Tesla maintains its global leadership, the rapid rise of Chinese integrators in Europe and their dominance in emerging markets like the Middle East signals a fundamental shift in the industry. Success will increasingly depend on companies’ ability to navigate diverse regulatory environments, adapt to local market requirements, and maintain competitive cost structures across multiple regions,” the analyst added.
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.
Tesla delivers 384,000 vehicles in Q2 2025, deploys 9.6 GWh in energy storage
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.
Tesla Supercharger access has proven to be a challenge for one company
Tesla Giga Berlin makes big move amid strong sales and demand
Tesla analyst says Musk stock buy should send this signal to investors
-
Elon Musk2 weeks agoTesla’s next-gen Optimus prototype with Grok revealed
-
News1 week agoTesla launches new Supercharger program that business owners will love
-
Elon Musk1 week agoTesla Board takes firm stance on Elon Musk’s political involvement in pay package proxy
-
News2 weeks agoTesla appears to be mulling a Cyber SUV design
-
News2 weeks agoTesla deploys Unsupervised FSD in Europe for the first time—with a twist
-
News2 weeks agoTesla explains why Robotaxis now have safety monitors in the driver’s seat
-
News2 weeks agoTesla is already giving Robotaxi privileges hours after opening public app
-
Elon Musk2 weeks agoElon Musk says Tesla will take Safety Drivers out of Robotaxi: here’s when