Energy
Tesla Energy is quietly setting its sights on peaker plants
Behind the spotlights trained on the Model 3 production ramp and Elon Musk’s online behavior, Tesla’s Energy business is quietly growing and spreading its reach. Tesla notes that its deployment of stationary batteries, which are designed to supply electricity to residential homes, businesses, and even the power grid, surged 450% in the first six months of 2018 alone. These figures are well in line with Elon Musk’s statement during the Q2 2018 earnings call, when he noted that Tesla Energy is growing at such a pace that it would likely catch up and exceed the company’s electric car business in the future.
During the 2018 Annual Shareholder Meeting, Elon Musk announced that Tesla managed to hit a milestone of installing 1 GWh of energy storage to projects worldwide. This is only the beginning, though, as the company is aiming to double its battery storage installations within the next 12 months. Just like its electric cars like the Model 3, Tesla’s energy products like the Powerwall 2 home battery system are seeing overwhelming demand from customers — so much so that installations for the products are quite delayed. In Tesla’s website alone, the company notes that new Powerwall 2 orders would likely not be filled until “late 2018” at the earliest.
Despite the company currently being unable to meet production, Tesla CTO JB Straubel noted in a recent statement to the San Francisco Chronicle that Tesla’s battery production would likely catch up early next year. Straubel stated that while Tesla is scaling production as fast as it could, there are still delays as the demand for the residential market continues to be larger than expected. Demand from utility providers has remained strong as well. Back in June, for example, the company landed a contract with Pacific Gas and Electric Co. to install its industrial-grade Powerpack batteries to store 730 MWh of electricity in Moss Landing; and that’s just one of several high-profile projects that the company is engaged in.
Tesla’s Powerpack farm in South Australia. 
Tesla’s energy storage solutions are starting become more and more accepted by utility companies, particularly since battery technology has reached a point where it now has the potential to replace inefficient and dirty “Peaker” power plants, which are powered on when the demand for electricity is at its highest. Straubel believes that battery solutions such as those offered by Tesla Energy are poised to outcompete conventional peaker plants.
“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.
Tesla Energy’s initiative to eventually replace peaker power plants is very similar to the company’s efforts to render fossil fuel-powered automobiles obsolete. Elon Musk is known to have said that Tesla will not stop “until every car on the road is electric.” Considering the CTO’s recent statements, it appears that Tesla Energy would likely not stop until all backup power plants are powered by renewable energy as well.
Tesla will actually be doing the world a favor if its Energy business ends up helping in the transition of the power industry away from peaker plants. Peaker plants, after all, are responsible for a lot of pollution. A case study of the facilities in CA cited by the Clean Energy Group noted that peaker plants emit roughly 30% more carbon dioxide per megawatt-hour than natural gas combined-cycle plants, which are increasingly being used as base load plants. The case study also noted that 84% of peaker plants are located in areas that are vulnerable to environmental damage. On top of this, peaker plants are actually quite costly for consumers, considering that they are utilized when demand for electricity is at its highest.
Tesla Energy’s goal of eventually replacing peaker plants might be ambitious, but it is not impossible, especially since the United States’ energy storage business has been seeing growth over the past years. A study from GTM Research, for one, estimates that the sales of energy storage for both residential and utility markets in the US would likely hit $541 million this year, before passing $1 billion in 2019, and hitting $4.6 billion in 2023. If Tesla can ramp its energy business within the coming years, the company could position itself strategically in what could very well be an upcoming energy gold rush.
Tesla’s energy business usually takes a back seat to the company’s electric car division, but the updates that the company has teased regarding its battery technology are very encouraging. During the 2018 Annual Shareholder Meeting, for one, Elon Musk mentioned that Tesla is now aiming to hit a cost of $100 per kWh at the pack level.
“We think at the cell level probably we can do better than $100/kWh maybe later this year depending upon stable commodity prices. With further improvements to the cell chemistry, the production process, and more vertical integration on the cell side, for example, integrating the production of cathode and anode materials at the Gigafactory, and improved design of the module and pack, we think long-term we can get below $100/kWh at the pack level,” he said.
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.
Energy
Tesla launches Cybertruck vehicle-to-grid program in Texas
The initiative was announced by the official Tesla Energy account on social media platform X.
Tesla has launched a vehicle-to-grid (V2G) program in Texas, allowing eligible Cybertruck owners to send energy back to the grid during high-demand events and receive compensation on their utility bills.
The initiative, dubbed Powershare Grid Support, was announced by the official Tesla Energy account on social media platform X.
Texas’ Cybertruck V2G program
In its post on X, Tesla Energy confirmed that vehicle-to-grid functionality is “coming soon,” starting with select Texas markets. Under the new Powershare Grid Support program, owners of the Cybertruck equipped with Powershare home backup hardware can opt in through the Tesla app and participate in short-notice grid stress events.
During these events, the Cybertruck automatically discharges excess energy back to the grid, supporting local utilities such as CenterPoint Energy and Oncor. In return, participants receive compensation in the form of bill credits. Tesla noted that the program is currently invitation-only as part of an early adopter rollout.
The launch builds on the Cybertruck’s existing Powershare capability, which allows the vehicle to provide up to 11.5 kW of power for home backup. Tesla added that the program is expected to expand to California next, with eligibility tied to utilities such as PG&E, SCE, and SDG&E.
Powershare Grid Support
To participate in Texas, Cybertruck owners must live in areas served by CenterPoint Energy or Oncor, have Powershare equipment installed, enroll in the Tesla Electric Drive plan, and opt in through the Tesla app. Once enrolled, vehicles would be able to contribute power during high-demand events, helping stabilize the grid.
Tesla noted that events may occur with little notice, so participants are encouraged to keep their Cybertrucks plugged in when at home and to manage their discharge limits based on personal needs. Compensation varies depending on the electricity plan, similar to how Powerwall owners in some regions have earned substantial credits by participating in Virtual Power Plant (VPP) programs.
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