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Tesla’s Gigafactory continues to reshape Reno: Transforming education, housing and the small business sector

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Reno, a city just four hours away from Silicon Valley, has been home of Tesla’s Gigafactory – a city whose economy once chiefly relied on the low-wage casino industry, where bankruptcy and crime were frequent and unpredictable. Hit hard with the housing crash and recession, Reno fell into hard times in 2010 with a 14 percent unemployment rate. Once home to mostly thrifters and passersby, Reno’s outlook started to change with talks of Tesla’s plans for technological revitalization. Startups and incubators have been popping up to attract more millennials, new murals are being painted onto derelict walls, all are response to the hope that Tesla will be able to inject into the local economy sustainable, higher-paying jobs.

Tesla announced three years ago, in 2014, that construction would begin for its new Gigafactory in Reno, Nevada. As of now, battery cell production is well underway, and the factory has become the main production facility for Model 3 battery packs and drive units.

The introduction of Tesla into the region has not only infused Reno’s economy with jobs that have shifted it out of its economic drought, but also incentivized enrollment in neighboring schools, especially in STEM-related subjects. Nearby professors at the University of Nevada commented to eenews that the Tech Sector may be the area with the most secure employment base. The construction of the factory has provided over 4000 local jobs for the Reno economy, and will support close to 10,000 jobs when complete, up from a previous estimate of 6,500 jobs.

Tesla Gigafactory flyover July 2017 captures parking lot expansion

This will in turn increase the retention rate at schools, both secondary and professional/university, creating a positive feedback cycle within the job sector and the education sector, thus securing the longevity of both. In fact, in 2013, a large part of the economic recovery was due to STEM jobs, driving unemployment down to 6.4 percent, reported the Atlantic. Additionally, STEM jobs pay from 28 to 68 more than non-STEM jobs.

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The presence of Tesla is complemented by other tech companies such as Apple and Amazon, with more expected to come. It’s very likely that the landscape of Reno in the years to come will be vastly different than it was before the introduction of Tesla, and many experts and officials dub this the “Tesla Effect”.

Hillary Schieve, the Mayor of Reno, defined the “Tesla Effect” as “a positive shift toward changing Reno’s national perception for the better….Reno’s emerging neighborhoods, such as Midtown, downtown, and the Fourth Street corridor…due in large part to [the] booming technology industry with billions of dollars being invested from some of Fortune’s highest-ranked companies, which includes Tesla, Switch, Amazon and Microsoft.”

The growth from the “Tesla Effect” extends beyond just the technology sector. Applied Economics presented a study in 2014 to Nevada Governor’s Office of Economic Development stating that “Tesla would be an important contributor to the region’s economy and could serve as a catalyst for additional manufacturing and logistics development in the region with its worldwide name recognition and cutting-edge technology. In addition, all of the jobs created by the company would be net new jobs thereby growing the economy both locally and regionally. The attraction of this company to Washoe County and Storey County would not only create a large number of new direct jobs, but also support a sizeable amount of additional economic activity, jobs and payroll at related local supplier and consumer businesses.” The study further broke down the revenues streams into different sections and explained where each calculated value was estimated from. You can see the full report here.

The presence of Tesla has pushed for market diversification within Reno. The building of the factory continues to draw in slews of local businesses to supplement the needs of both the factory and the people. Demands for food, supplies, gas and food will increase, bringing in more employment and more cash flow.

Drawing new businesses also could have the potential to diversify and infuse culture into the local neighborhood, highlighting flairs and quirks that will make it competitively attractive culturally to job seekers against neighborhoods such as the rich-cultured Austin.  

Siena Hotel Spa & Casino in Reno, NV outside of nearby Tesla Gigafactory in Sparks. Source: Siena Hotel & Casino

With neighborhood changes, come real estate changes. The median rent prices along with the amount of rentals saw a sharp spike followed by a steady increase beginning around February 2017, according to trulia.com. But while the tech boom creates a great demand for apartments and housing, the boom does not seem like it would expand into areas stricken by poverty and food deserts so far. According to the Atlantic, the boom has not yet worked to create enough affordable housing, possibly stratifying the inequality levels in correlation to distance from the tech center. The consequence could be creating a real-estate scenario similar to that of San Francisco’s. However, better local government regulations and sanctions could possibly ameliorate the problem, since the factory has not officially opened all of its doors yet to potential job-seekers.

With the influx of jobs and traffic, infrastructure and transportation will be greatly impacted. According to the Reno Gazette Journal, “USA Parkway’s still-unbuilt 16 miles to U.S. Highway 50 in Silver Springs will be “fast-tracked” to completion in as soon as two years, they said, opening up access to Lyon County and the Dayton Valley and to Carson City beyond”. Increasing the connectivity of the community may better bridge the divides between individual counties and neighborhoods, and between Reno and the outside world, facilitating more efficient transfers of material, information and persons.

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With shifting concerns and economies, cities are made to be more adaptable to the different cultural, demographic and social climates. Jobs markets created by fossil fuels will meet diminishing futures in face of environmental and climate concerns. The redirection towards clean energy leaves white space for the development and creation of jobs in the clean energy technologies. Creating a technological oasis centered around sustainability in complement with the current economy will secure both long term and short term profits. It will insure a steady revenue stream for the state and poise itself for the transition into a green future.

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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.

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Credit: Tesla

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. 

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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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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.

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Credit: Tesla

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.”

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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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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.

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Credit: Tesla

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.

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