News
Tesla expands Megapack battery storage area in Lathrop Megafactory
Tesla’s energy business saw a 360% year-over-year growth in the first quarter, and a good part of it was due to the Megapack, the company’s flagship battery storage product. Recent footage of Tesla’s Lathrop Megafactory suggests that the electric vehicle maker is looking to ramp its production of the giant battery packs.
Drone footage from a Tesla watcher who regularly observes the Fremont Factory recently featured a glimpse at the activities happening in the Lathrop Megafactory. The Megafactory is a dedicated facility that’s designed to produce the Megapack, and its output is expected to hit around 10,000 units per year, as per Tesla’s year-end update on Twitter last December.
As can be seen in the recent drone video, Tesla is currently building out a new storage area for Megapack batteries in the vicinity of the Lathrop Megafactory. So far, it appears that the company has set up spaces for 80 more Megapack batteries in the facility’s new storage area, though its size suggests that more batteries could be kept there as the facility accelerates its production ramp.
Meanwhile, the Megafactory’s initial holding lot for Megapack batteries was practically full when the aerial video was taken. This suggests that Tesla is hitting a steady pace in the Megapack batteries’ production ramp. Considering that each Megapack battery is worth over $2 million with installation fees, a ramp in the production of the Megapack would likely contribute positively to Tesla’s finances in the coming quarters.
If the Lathrop Megafactory is successful in ramping to a production rate of 10,000 Megapack batteries per year, the facility would effectively be able to provide Tesla with sales of over $20 billion. And considering that Tesla Energy products are expected to have healthy margins, partly due to the fact that energy storage units are less complex than electric vehicles, the company’s gross profits from the output of the Lathrop Megafactory’s Megapack batteries would likely be significant.
Watch a drone flyover of Tesla’s Fremont Factory and Lathrop Megafactory in the video below.
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Elon Musk
Elon Musk estimates Tesla Semi could reach Europe next year
“We’ve got the Tesla Semi coming out, the heavy truck, and that’ll be going to Europe hopefully next year,” Musk said.
Tesla is preparing to expand its all-electric Semi truck program to Europe, with CEO Elon Musk indicating that the Class 8 vehicle could arrive in the region 2027.
Musk shared his update during an interview about Giga Berlin with plant manager André Thierig, which was posted on X by the official Tesla Manufacturing account.
“We’ve got the Tesla Semi coming out, the heavy truck, and that’ll be going to Europe hopefully next year,” he said.
Tesla has already begun limited production and customer deployments of the Tesla Semi in the United States, with the company working to scale output through the Semi factory near Giga Nevada. Considering Musk’s comments, a European rollout would mark the next phase of the vehicle’s expansion beyond North America.
While Musk did emphasize that the Semi is only “hopefully” coming to Europe next year, his remark does suggest that Tesla is targeting Europe as the next major market for its heavy-duty electric truck.
Musk has consistently argued that electrification should extend beyond passenger vehicles. During the same interview, he reiterated his view that “all ground transport should be electric,” adding that ships, and eventually aircraft, would follow.
The Semi plays a central role in that strategy. Heavy-duty freight remains one of the most emissions-intensive segments of road transport, and European regulators have increasingly pushed for lower-emission commercial fleets.
Tesla recently refreshed the Semi lineup on its official website, listing two variants: Standard and Long Range. The Standard trim offers up to 325 miles of range with an energy consumption rating of 1.7 kWh per mile, while the Long Range version provides up to 500 miles, which should be more than ample for European routes.
Elon Musk
Tesla Cybercab coming next to Giga Berlin, Optimus possibly after
“From a next major product standpoint, I think most likely is the Tesla Cybercab,” Musk said.
Tesla could add the Cybercab and Optimus humanoid robot to the production lineup at Giga Berlin, as per recent comments from CEO Elon Musk.
During a recent interview with Giga Berlin plant manager André Thierig, Musk identified the Cybercab as the most likely next major product for the German factory, with Optimus potentially following after.
“From a next major product standpoint, I think most likely is the Tesla Cybercab,” Musk said. He added that there are also “possibilities of Tesla Optimus” being produced in the facility.
Tesla has already begun production of the Cybercab in Giga Texas, with volume production expected to ramp this year. Based on Musk’s comments, it appears that if conditions align in Europe, Giga Berlin could eventually join that effort.
The CEO’s comments about Optimus coming to Gigafactory Berlin are quite unsurprising too considering that Musk has mentioned in the past that the humanoid robot will likely be Tesla’s highest volume product in the long run.
Giga Berlin will likely be able to produce mass volumes of Optimus, as the Model S and Model X lines being converted to an Optimus line in the Fremont Factory are already expected to produce 1 million units of the humanoid robot annually.
Apart from his comments about the Cybercab and Optimus, Elon Musk also confirmed that Giga Berlin has started ramping battery cell production and will continue expanding Model Y output, particularly as supervised Full Self-Driving (FSD) gains regulatory approvals in Europe.
Taken together, the remarks suggest Berlin’s role could evolve beyond vehicle assembly into a broader multi-product manufacturing hub, not just a regional Model Y plant.
Energy
Tesla Powerwall distribution expands in Australia
Inventory is expected to arrive in late February and official sales are expected to start mid-March 2026.
Supply Partners Group has secured a distribution agreement for the Tesla Powerwall in Australia, with inventory expected to arrive in late February and official sales beginning in mid-March 2026.
Under the new agreement, Supply Partners will distribute Tesla Powerwall units and related accessories across its national footprint, as noted in an ecogeneration report. The company said the addition strengthens its position as a distributor focused on premium, established brands.
“We are proud to officially welcome Tesla Powerwall into the Supply Partners portfolio,” Lliam Ricketts, Co-Founder and Director of Innovation at Supply Partners Group, stated.
“Tesla sets a high bar, and we’ve worked hard to earn the opportunity to represent a brand that customers actively ask for. This partnership reflects the strength of our logistics, technical services and customer experience, and it’s a win for installers who want premium options they can trust.”
Supply Partners noted that initial Tesla Powerwall stock will be warehoused locally before full commercial rollout in March. The distributor stated that the timing aligns with renewed growth momentum for the Powerwall, supported by competitive installer pricing, consumer rebates, and continued product and software updates.
“Powerwall is already a category-defining product, and what’s ahead makes it even more compelling,” Ricketts stated. “As pricing sharpens and capability expands, we see a clear runway for installers to confidently spec Powerwall for premium residential installs, backed by Supply Partners’ national distribution footprint and service model.”
Supply Partners noted that a joint go-to-market launch is planned, including Tesla-led training for its sales and technical teams to support installers during the home battery system’s domestic rollout.