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Tesla Grabs Mind Share with Battery Storage Solutions

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Most home owners aren't looking to move off the grid, yet, charging with clean energy seems to be the biggest driving factor. (Photo Credit: Grant Gerke)

Most home owners aren’t looking to move off the grid, yet, charging with clean energy seems to be the biggest driving factor. (Photo Credit: Grant Gerke)

It’s been interesting to read and watch how corporate media, industry experts and financial analysts digest Tesla Energy’s battery storage solutions over the last seven days. Numerous media outlets are poking at Tesla’s business premise of a 7 and 10 kWH residential battery packs for your home, as they should be.

Here’s a very even-handed take by Dan Steigert, an energy professional, on the 7 kWh daily battery:

If you are getting this out of the battery every day for 10 years the price drops to $0.12/kWhr-cycle, again neglecting installation and inverter price. If this is truly the spec, this is an exceptional number. It is still more expensive than a genset—fossil fuel generator—because the genset can run @ $200/kW, and this is $1500/kW.

The residential battery packs are getting a LOT of attention, partly due to the lack of information at the PR event last Thursday in Hawthorne, Calif. For the last couple of months, I’ve been documenting the lack of a residential market for energy storage, think “community energy” and being able group 100 to 200 hundred solar houses and sell it back to the utility.

That residential market example doesn’t exist, yet.

Tesla-Logo-PowerWall-Event

Tesla Powerwall debuts at Tesla PR event in Hawthorne, CA on Aug 30, 2015.

However, utilities are fully engaged in offering commercial demand/response programs throughout the U.S to large companies and, since last Thursday, Tesla has received over 2,500 reservations for its PowerPack, the commercial and building storage solution.

Currently, Amazon is focusing on clean energy to power its data centers and will roll out a pilot program with Tesla Energy for 4.8 megawatts in Northern California. Tesla is also working with Jackson Family Wines and Target on pilot projects.

“As part of Target’s support to our communities, we’re excited to partner with Tesla on a pilot test at select Target stores to incorporate Tesla Energy Storage as part of our energy strategy,” says David Hughes, senior grp. mgr., Energy Management, Target.

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So, yes, Tesla Energy has to deliver a real business solution with these pilot projects and, of course, margins need win out. During Tesla’s conference call, Musk said, “Once we get Gigafactory up and running, and high volume and get the economies of scale working, this is just a guess, but maybe it’s somewhere around 20 percent (battery margins). It’s like we just don’t have enough information to say exactly what that would be (at this point).”

Also from the conference call are the similarities between the car packs and Tesla Energy packs and how that could help economies-of-scale.

JB Straubel, CTO at Tesla Energy, says, “Maybe one point on the cost structure. There’s definitely a lot of commonality in the supply chain and even in the manufacturing base on how we do the modules and sales for the Tesla Energy products along with the vehicle products.”

Sounds promising, especially when Tesla is on record saying it should drive down battery costs by 30% when the Gigafactory is fully operational.

So, the company has to deliver but mind share is already there for the Silicon Valley company and its energy storage products. According to Bloomberg, Tesla Energy’s current reservations–no money down is needed–for both the home and commercial products would equate to $800 million if they could deliver immediately.

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Ten years from now, who’s going to get credit for leading the clean energy battery storage drive? I doubt Panasonic and Sony and their much pricier battery storage solutions would roll off your tongue.

"Grant Gerke wears his Model S on his sleeve and has been writing about Tesla for the last five years on numerous media sites. He has a bias towards plug-in vehicles and also writes about manufacturing software for Automation World magazine in Chicago. Find him at Teslarati

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Tesla AI5 chip nears completion, Elon Musk teases 9-month development cadence

The Tesla CEO shared his recent insights in a post on social media platform X.

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Credit: Tesla

Tesla’s next-generation AI5 chip is nearly complete, and work on its successor is already underway, as per a recent update from Elon Musk. 

The Tesla CEO shared his recent insights in a post on social media platform X.

Musk details AI chip roadmap

In his post, Elon Musk stated that Tesla’s AI5 chip design is “almost done,” while AI6 has already entered early development. Musk added that Tesla plans to continue iterating rapidly, with AI7, AI8, AI9, and future generations targeting a nine-month design cycle. 

He also noted that Tesla’s in-house chips could become the highest-volume AI processors in the world. Musk framed his update as a recruiting message, encouraging engineers to join Tesla’s AI and chip development teams.

Tesla community member Herbert Ong highlighted the strategic importance of the timeline, noting that faster chip cycles enable quicker learning, faster iteration, and a compounding advantage in AI and autonomy that becomes increasingly difficult for competitors to close.

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AI5 manufacturing takes shape

Musk’s comments align with earlier reporting on AI5’s production plans. In December, it was reported that Samsung is preparing to manufacture Tesla’s AI5 chip, accelerating hiring for experienced engineers to support U.S. production and address complex foundry challenges.

Samsung is one of two suppliers selected for AI5, alongside TSMC. The companies are expected to produce different versions of the AI5 chip, with TSMC reportedly using a 3nm process and Samsung using a 2nm process.

Musk has previously stated that while different foundries translate chip designs into physical silicon in different ways, the goal is for both versions of the Tesla AI5 chip to operate identically. AI5 will succeed Tesla’s current AI4 hardware, formerly known as Hardware 4, and is expected to support the company’s Full Self-Driving system as well as other AI-driven efforts, including Optimus.

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Tesla Model Y and Model 3 named safest vehicles tested by ANCAP in 2025

According to ANCAP in a press release, the Tesla Model Y achieved the highest overall weighted score of any vehicle assessed in 2025.

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Credit: ANCAP

The Tesla Model Y recorded the highest overall safety score of any vehicle tested by ANCAP in 2025. The Tesla Model 3 also delivered strong results, reinforcing the automaker’s safety leadership in Australia and New Zealand.

According to ANCAP in a press release, the Tesla Model Y achieved the highest overall weighted score of any vehicle assessed in 2025. ANCAP’s 2025 tests evaluated vehicles across four key pillars: Adult Occupant Protection, Child Occupant Protection, Vulnerable Road User Protection, and Safety Assist technologies.

The Model Y posted consistently strong results in all four categories, distinguishing itself through a system-based safety approach that combines structural crash protection with advanced driver-assistance features such as autonomous emergency braking, lane support, and driver monitoring. 

This marked the second time the Model Y has topped ANCAP’s annual safety rankings. The Model Y’s previous version was also ANCAP’s top performer in 2022.

The Tesla Model 3 also delivered a strong performance in ANCAP’s 2025 tests, contributing to Tesla’s broader safety presence across segments. Similar to the Model Y, the Model 3 also earned impressive scores across the ANCAP’s four pillars. This made the vehicle the top performer in the Medium Car category.  

ANCAP Chief Executive Officer Carla Hoorweg stated that the results highlight a growing industry shift toward integrated safety design, with improvements in technologies such as autonomous emergency braking and lane support translating into meaningful real-world protection.

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“ANCAP’s testing continues to reinforce a clear message: the safest vehicles are those designed with safety as a system, not a checklist. The top performers this year delivered consistent results across physical crash protection, crash avoidance and vulnerable road user safety, rather than relying on strength in a single area.

“We are also seeing increasing alignment between ANCAP’s test requirements and the safety technologies that genuinely matter on Australian and New Zealand roads. Improvements in autonomous emergency braking, lane support, and driver monitoring systems are translating into more robust protection,” Hoorweg said.

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Tesla Sweden uses Megapack battery to bypass unions’ Supercharger blockade

Just before Christmas, Tesla went live with a new charging station in Arlandastad, outside Stockholm, by powering it with a Tesla Megapack battery.

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Credit: Tesla Charging/X

Tesla Sweden has successfully launched a new Supercharger station despite an ongoing blockade by Swedish unions, using on-site Megapack batteries instead of traditional grid connections. The workaround has allowed the Supercharger to operate without direct access to Sweden’s electricity network, which has been effectively frozen by labor action.

Tesla has experienced notable challenges connecting its new charging stations to Sweden’s power grid due to industrial action led by Seko, a major Swedish trade union, which has blocked all new electrical connections for new Superchargers. On paper, this made the opening of new Supercharger sites almost impossible.

Despite the blockade, Tesla has continued to bring stations online. In Malmö and Södertälje, new Supercharger locations opened after grid operators E.ON and Telge Nät activated the sites. The operators later stated that the connections had been made in error. 

More recently, however, Tesla adopted a different strategy altogether. Just before Christmas, Tesla went live with a new charging station in Arlandastad, outside Stockholm, by powering it with a Tesla Megapack battery, as noted in a Dagens Arbete (DA) report. 

Because the Supercharger station does not rely on a permanent grid connection, Tesla was able to bypass the blocked application process, as noted by Swedish car journalist and YouTuber Peter Esse. He noted that the Arlandastad Supercharger is likely dependent on nearby companies to recharge the batteries, likely through private arrangements.

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Eight new charging stalls have been launched in the Arlandastad site so far, which is a fraction of the originally planned 40 chargers for the location. Still, the fact that Tesla Sweden was able to work around the unions’ efforts once more is impressive, especially since Superchargers are used even by non-Tesla EVs.

Esse noted that Tesla’s Megapack workaround is not as easily replicated in other locations. Arlandastad is unique because neighboring operators already have access to grid power, making it possible for Tesla to source electricity indirectly. Still, Esse noted that the unions’ blockades have not affected sales as much.

“Many want Tesla to lose sales due to the union blockades. But you have to remember that sales are falling from 2024, when Tesla sold a record number of cars in Sweden. That year, the unions also had blockades against Tesla. So for Tesla as a charging operator, it is devastating. But for Tesla as a car company, it does not matter in terms of sales volumes. People charge their cars where there is an opportunity, usually at home,” Esse noted. 

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