

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 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.
Energy
Tesla Shanghai Megafactory produces 1,000th Megapack for export to Europe
The Shanghai Megafactory was able to hit this milestone less than six months after it started producing the Megapack.

Tesla Energy has announced a fresh milestone for its newest Megapack factory. As per the electric vehicle maker, the Shanghai Megafactory has successfully produced its 1,000th Megapack battery.
The facility was able to hit this milestone less than six months after it started producing the grid-scale battery system.
New Tesla Megapack Milestone
As per Tesla Asia in a post on its official accounts on social media platform X, the 1,000th Megapack unit that was produced at the Shanghai Megafactory would be exported to Europe. As noted in a CNEV Post report, Tesla’s energy products are currently deployed in over 65 countries and regions globally. This allows Tesla Energy to compete in energy markets that are both emerging and mature.
To commemorate the 1,000th Megapack produced at the Shanghai Megafactory, the Tesla China team posted with the grid-scale battery with celebratory balloons that spelled “Megapack 1000.” The milestone was celebrated by Tesla enthusiasts on social media, especially since the Shanghai Megafactory only started its operations earlier this year.
Quick Megafactory Ramp
The Shanghai Megafactory, similar to Tesla’s other key facilities in China, was constructed quickly. The facility started its construction on May 23, 2024, and it was hailed as Tesla’s first entry storage project outside the United States. Less than a year later, on February 11, 2025, the Shanghai Megafactory officially started producing Megapack batteries. And by March 21, 2025, Tesla China noted that it had shipped the first batch of Megapack batteries from the Shanghai plant to foreign markets.
While the Shanghai Megafactory is still not at the same level of output as Tesla’s Lathrop Megafactory, which produces about 10,000 Megapacks per year, its ramp seems to be quite steady and quick. It would then not be surprising if Tesla China announces the Shanghai Megafactory’s 2,000th Megapack milestone in the coming months.
Energy
Tesla launches first Virtual Power Plant in UK – get paid to use solar
Tesla has launched its first-ever Virtual Power Plant program in the United Kingdom.

Tesla has launched its first-ever Virtual Power Plant program in the United Kingdom. This feature enables users of solar panels and energy storage systems to sell their excess energy back to the grid.
Tesla is utilizing Octopus Energy, a British renewable energy company that operates in multiple markets, including the UK, France, Germany, Italy, Spain, Australia, Japan, New Zealand, and the United States, as the provider for the VPP launch in the region.
The company states that those who enroll in the program can earn up to £300 per month.
Tesla has operated several VPP programs worldwide, most notably in California, Texas, Connecticut, and the U.S. territory of Puerto Rico. This is not the first time Tesla has operated a VPP outside the United States, as there are programs in Australia, Japan, and New Zealand.
This is its first in the UK:
Our first VPP in the UK
You can get paid to share your energy – store excess energy in your Powerwall & sell it back to the grid
You’re making £££ and the community is powered by clean energy
Win-win pic.twitter.com/evhMtJpgy1
— Tesla UK (@tesla_uk) July 17, 2025
Tesla is not the only company that is working with Octopus Energy in the UK for the VPP, as it joins SolarEdge, GivEnergy, and Enphase as other companies that utilize the Octopus platform for their project operations.
It has been six years since Tesla launched its first VPP, as it started its first in Australia back in 2019. In 2024, Tesla paid out over $10 million to those participating in the program.
Participating in the VPP program that Tesla offers not only provides enrolled individuals with the opportunity to earn money, but it also contributes to grid stabilization by supporting local energy grids.
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