

Energy
Tesla is currently ‘aggressively ramping’ energy business, says CTO JB Straubel
Amid rising competition in the residential solar market from rivals such as SunRun, Tesla CTO JB Straubel stated that Tesla is ramping up its efforts to bolster its energy business. According to Straubel, the reception of the public to products like the Powerwall 2 and Solar Roof tiles has been similar to the Model 3. Thus, Tesla is now doing what it can to increase its capacity to produce its energy products as fast as it can.
Straubel’s update to Tesla’s energy business came as a statement to USA Today, which recently published an article about the residential solar market in the United States. While the Tesla CTO did not provide the actual figures of its Powerwall 2 and Solar Roof reservations, Straubel did state that for now, Tesla is unable to keep up with deposits being put down for the products. Straubel also emphasized that Tesla is not in any way stepping back from the residential energy business.
“No one should see us as stepping back from solar. In fact, it’s the opposite. It’s like with Model 3. People have come flooding in and are waiting on the product. So now we’re aggressively ramping our capacity,” he said.
To address the demand for its residential products, Straubel stated that production of the Powerwall 2 is set to pick up later this year, while output for Solar Roof tiles is expected to accelerate in 2019. The Tesla CTO expects these initiatives to reduce the wait times for these energy products.
The Tesla CTO’s latest statement comes as an encouraging update to the company’s residential energy business, much of which has been under the news radar for most of the year. The first consumer installations of the Solar Roof began earlier this year, and reports emerged that Gigafactory 2 in Buffalo, NY is ramping up hiring, but apart from these, Tesla’s energy initiatives appear to be focused on large-scale industrial projects, such as its upcoming Powerpack farm in Victoria, and its virtual power plant in South Australia.
Tesla’s residential energy business in the United States took a blow last month, as well, with the company closing a dozen of its solar facilities across nine states in the country as part of its restructuring. Apart from this, Tesla also announced that it would not renew its partnership with Home Depot to sell its solar solutions and Powerwall 2 home battery storage units.
Regardless of these, the progress of Tesla’s industrial energy projects is indicative of the potential of its residential initiatives. Over the past year, after all, Tesla had all but proved that its battery technology is a feasible alternative to conventional power solutions. The warm reception to its big battery in South Australia, which continues to support the region’s embattled energy grid, is a testament to this.
Considering the competition from its local competitors, Tesla would have to increase its push for its residential energy business in the United States. Solar analyst for GTM Research Allison Mond, for one, stated that Tesla could see its market share shrink in the coming quarters due to competitors and the company’s lack of focus on its solar products. Nevertheless, Straubel stated that market share is not really Tesla’s focus for its residential energy business.
“We’re focused intently on the customer experience, not on having a higher market share. We’re looking at the bigger picture,” he said.
During Tesla’s 2018 Annual Shareholder Meeting, Tesla CEO Elon Musk mentioned that the company is getting closer to a battery breakthrough. Addressing shareholders, Musk stated that Tesla is on pace to hit a battery cell cost of $100 per kWh by the end of 2018 depending on the stability of current commodity prices. Considering Straubel’s mention of a ramp in Powerwall 2 production later this year, it seems like Tesla’s push into residential solar could happen just as the company hits a breakthrough in its battery technology.
Energy
Tesla China’s Megafactory helps boost Shanghai’s battery exports by 20%: report
Located in the Lingang New Area of the Shanghai Free Trade Zone, the Tesla Megafactory has been running at full throttle since opening in February.

Reports from China have indicated that the Tesla Shanghai Megafactory has become a notable player in China’s booming battery export market.
Located in the Lingang New Area of the Shanghai Free Trade Zone, the Tesla Megafactory has been running at full throttle since opening in February. It produces Tesla Megapack batteries for domestic and international use.
Tesla Shanghai Megafactory
As noted in a report from Sina Finance, the Tesla Shanghai Megafactory’s output of Megapack batteries helped drive a notable rise in lithium battery shipments from the city in the first three quarters of 2025. This is quite impressive as the Megafactory is a rather young facility, though it has been steadily increasing its production capacity.
“The establishment of this benchmark factory has not only driven the rapid development of Shanghai’s energy storage industry but also become a new growth engine for foreign trade exports. Driven by the Tesla energy storage factory’s opening, Shanghai’s lithium battery exports reached 32.15 billion yuan ($4.5 billion) in the first three quarters, a 20.7% increase,” the publication wrote.
Ultimately, the Shanghai Megafactory has proved helpful to the city’s “new three” industries, which are comprised of new energy vehicles, lithium batteries, and photovoltaic systems. Exports of the “new three” products reached 112.17 billion yuan ($15.7 billion), a 6.3% year-over-year increase during the same period. The city’s total trade volume grew 5.4% year-over-year as well, with exports up 11.3%, driven largely by the clean energy sector’s performance.
Energy storage is helping Shanghai
Since opening in February, the Shanghai Megafactory has been firing on all cylinders. In late July, Tesla Energy announced that the new battery factory has successfully produced its 1,000th Megapack unit. That’s quite impressive for a facility that, at the time, had only been operational for less than six months.
Speed has always been a trademark of the Shanghai Megafactory. Similar to Tesla’s other key facilities in China, the Megafactory was constructed quickly. The facility started its construction on May 23, 2024. Less than a year later, the site officially started producing Megapack batteries. By late March 2025, Tesla China noted that it had shipped the first batch of Megapack batteries from the Shanghai plant to foreign markets.
Energy
Tesla recalls Powerwall 2 units in Australia

Tesla will recall Powerwall 2 units in Australia after a handful of property owners reported fires that caused “minor property damage.” The fires were attributed to cells used by Tesla in the Powerwall 2.
Tesla Powerwall is a battery storage unit that retains energy from solar panels and is used by homeowners and businesses to maintain power in the event of an outage. It also helps alleviate the need to rely on the grid, which can help stabilize power locally.
Powerwall owners can also enroll in the Virtual Power Plant (VPP) program, which allows them to sell energy back to the grid, helping to reduce energy bills. Tesla revealed last year that over 100,000 Powerwalls were participating in the program.
Tesla announces 100k Powerwalls are participating in Virtual Power Plants
The Australia Competition and Consumer Commission said in a filing that it received several reports from owners of fires that led to minor damage. The Australian government agency did not disclose the number of units impacted by the recall.
The issue is related to the cells, which Tesla sources from a third-party company.
Anyone whose Powerwall 2 unit is impacted by the recall will be notified through the Tesla app, the company 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.
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