Tesla Giga Berlin is the electric automaker’s first European production facility, and it is slated to begin production of the Model Y crossover later this year. However, reports out of Germany indicate that Tesla’s German EV manufacturing facility is poised to be delayed six months due to numerous constraints that deal with battery pack output. However, Brandenburg Economic Minister Jörg Steinbach, who has been one of Tesla’s most vocal supporters in their quest to open the German facility, isn’t buying the six-month delay story at all. Steinbach still believes Tesla is on pace for a late-Summer or early-Autumn start at Giga Berlin.
The delays at Giga Berlin are not unfamiliar territory for those who have been following the site’s development over the past 18 months. After being announced by Elon Musk in late 2019, Tesla started land preparations in January 2020, only to begin erecting the mainframe of the facility just a few months later. The site has been subjected to numerous short-term delays due to the COVID-19 pandemic and some application holdups that needed preliminary approval before Tesla could move forward. However, recent reports from Germany suggest a more long-term delay is in store for Tesla because battery pack output won’t allow for vehicle production.
“I don’t have the faintest idea of how anyone can come up with a six-month delay. If nothing happens out of the ordinary, I still expect a start of production in late Summer or Early Autumn.”
-Jörg Steinbach, German Economic Minister, State of Brandenburg
Many outlets have cited Automobilwoche’s story that says the German manufacturing plant won’t become operational until January 2022. The article indicates that company circles close to Elon Musk state the CEO is accepting the January 2022 date, even though just last week during the Q1 2021 Earnings Call, Musk said that limited production would occur at both Giga Berlin and Giga Texas this year.
Musk said:
“We’re building factories as quickly as we can. Both Texas and Berlin are progressing well, and we expect to have initial limited production from those factories this year and volume production from Texas and Berlin next year.”
(Credit: @gigafactory_4)
Steinbach not buying Giga Berlin delay stories
Now that the report has been in the loop for a few days, plenty of people are finding out that Giga Berlin is apparently facing the six-month delay. One of the people disagreeing with those reports is Brandenburg Economic Minister Jörg Steinbach, a well-known politician who has been ecstatic regarding Tesla’s entry into the German economy. Steinbach told Teslarati earlier today that he doesn’t know where the six-month delay rumors are culminating from. Still, he expects Giga Berlin to face “approximately three months” of delay time.
“I don’t have the faintest idea of how anyone can come up with a six-month delay,” Steinbach said to Teslarati in an interview. “If nothing happens out of the ordinary, I still expect a start of production in late Summer or Early Autumn,” the Economic Minister added.
While Tesla has expressed some frustration with the German approval process, it is not unordinary for things to take several years to earn ultimate approval. Teslarati spoke to German engineer and Tesla enthusiast Alex Voigt last week, who indicated that many projects take 3-5 years to gain ultimate approval.
It appears that the basis of the delays seems to be blamed on a delay in 4680 cell production in Berlin, but the German factory’s battery line was not supposed to support the initial vehicle production efforts in the first place. Tesla’s Kato Road facility in Northern California sits just a stone’s throw away from the Fremont factory where Tesla has manufactured its cars since 2012. This is where Tesla is refining and developing the 4680 battery cell, which differs greatly from the batteries that Tesla currently uses in terms of power and performance, and it will support Tesla’s initial efforts in Berlin, according to Drew Baglino, the company’s Senior VP of Powertrain and Energy Engineering.
“We will incorporate 4680 design solutions into many applications in time across both energy and vehicle and we can use our pilot production facility in Fremont to support the new factory in Berlin as it ramps,” Baglino said during the Q3 2020 Earnings Call.
The delays at Giga Berlin could be confused with something as simple as an extended timeline, as Tesla’s addition of its 4680 battery cell manufacturing line to its application was submitted just last week. The additional portions of the application require more deliberation from regulators.
“If this additional investment now flows into the permit application, it goes without saying that the application documents must be revised, and then the approval authorities have the last word,” Dietmar Woidke, Brandenburg’s Prime Minister, said.
Tesla is still planning for Giga Berlin to begin production and deliveries this year, as it indicated in the most recent Update Letter that timing remains “on track for late 2021. Machinery for paint, stamping, castings, etc., continues to be moved into the building. In the meantime, we will continue to increase import volumes to Europe.”
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.
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.
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