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Tesla ramps up hiring at Megapack factory

Credit: Tesla

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Tesla is ramping up hiring at its Megapack factory in Lathrop, California. The automaker and energy company has several engineering positions it’s trying to fill as it focuses on meeting the demand for its utility-scale battery energy storage systems.

In late 2021, Tesla broke ground on its first dedicated facility for Megapack production, which opened in 2022 and is now capable of producing 10,000 Megapack units annually. This translates to sales of over $20 billion per year at the current prices of over $2 million each. This would enable the company to begin seeing substantial growth toward its bottom line from contributions of the energy side of its business if its gross profit per unit is significant.

Gary Black, manager of The Future Fund and Tesla investor in a recent podcast hosted by Farzad Mesbahi pointed out that Tesla could generate $10 billion in revenue this year from its energy side of the business if it produced half of what it’s capable of.

“The sell side is not talking about Megapacks,” he said.

“If Lathrop can even do 5,000 per year, and a lot of it’s based on can they get the batteries needed to produce five or ten thousand units. Five thousand units at $2 million each is $10 billion.”

He added that there’s a lot of debate on the type of gross margin, so he assumed a more conservative 20%. “Even if it’s 20%, that adds incrementally 50 cents to a dollar per share in earnings, and you’re also going to get tax credits as a result of this.”

Although Black’s estimates were conservative, Tesla is seeing high demand for its Megapack batteries. In Q3 2022, Tesla said that its energy storage deployments increased by 62% year-over-year in Q3.

“By far the highest level we have ever achieved,” Tesla said.

Tesla noted that this level of growth was accomplished as the semiconductor challenges were having an impact on its energy business. “Demand for our storage products remains in excess of our ability to supply.”

Those numbers could change tomorrow when Tesla releases its Q4 earnings report. Its hiring ramp at its Lathrop Megapack factory reflects this growth the company is hiring for various engineering positions.

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It’s hiring quality engineers for stationary battery manufacturing, battery enclosure manufacturing, and quality systems engineers. Each position has various requirements. For example, the quality systems engineer would identify inefficiencies across the business and be responsible for driving business process design, implementation, and project management of technical solutions.

As demand for Tesla’s Megapacks continues to grow, delivery dates of the units are still expected to be towards the end of 2024.

Disclosure: Johnna is a $TSLA shareholder and believes in Tesla’s mission.  

Your feedback is welcome. If you have any comments or concerns or see a typo, you can email me at johnna@teslarati.com. You can also reach me on Twitter at @JohnnaCrider1.

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Johnna Crider is a Baton Rouge writer covering Tesla, Elon Musk, EVs, and clean energy & supports Tesla's mission. Johnna also interviewed Elon Musk and you can listen here

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Tesla Europe builds momentum with expanding FSD demos and regional launches

Needless to say, it appears that Tesla is putting in some serious effort into boosting sales in Europe this year. 

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Credit: Tesla Europe & Middle East/X

Tesla has been notably active across Europe in recent weeks, expanding its Full Self-Driving (Supervised) ride-along program, entering a new market, and showcasing its newest vehicles across multiple regions. 

Needless to say, it appears that Tesla is putting in some serious effort into boosting sales in Europe this year. 

Tesla Europe recently announced the expansion of its FSD (Supervised) ride-along experiences, inviting the public to experience the system on local roads. Initially available in Italy, France, and Germany when it launched, the program has now expanded to Hungary, Finland, and Spain.

The ride-along program allows participants to ride in the passenger seat and observe how FSD Supervised handles real-world traffic scenarios, including dense urban driving and other challenging conditions. Tesla has positioned the initiative as a way to familiarize European drivers and regulators with the system’s capabilities in everyday use. The program has received positive reviews so far, with many being impressed by FSD’s real-world capabilities. 

Tesla also recently launched operations in Slovakia with a pop-up store and multi-day public event in Bratislava, as noted in an EV Wire report. The launch, held from January 16 to 18 at the Eurovea Mall Promenade, featured test drives, vehicle displays, including the Cybertruck, as well as family-focused attractions such as a mini-Tesla racetrack. 

Local observers noted that Tesla Optimus was also shown at the event, while the Tesla Owners Slovakia club welcomed the brand with a coordinated light show near the Slovak National Theater. Tesla Europe later shared its appreciation for Slovakia in a post on its official social media account on X, stating, “Thanks, Slovakia, for the amazing last 3 days & for giving us such a warm welcome!”

Tesla’s Slovakia entry follows a familiar pattern used by the company in other European markets. Tesla opened a pop-up store in Bratislava as an initial step, with plans for a permanent showroom and a potential service center at a renovated site previously occupied by a Jeep and Dodge dealership. Tesla has used a similar approach in markets such as Czechia and Lithuania, where permanent facilities followed within a few months of pop-up launches.

Slovakia already has six Supercharging sites totaling 46 Superchargers, including two locations in Bratislava, providing early infrastructure support for Tesla owners. Tesla staff program manager Supratik Saha described the Slovakia launch as a strategic expansion in the heart of the EU, citing the country’s strong automotive manufacturing base and appetite for advanced technology.

Beyond the EU, the company also marked another milestone with the first Cybertruck deliveries in the United Arab Emirates, signaling continued geographic expansion for Tesla’s newest vehicle. Just like Tesla Slovakia, the Cybertruck also received a warm welcome from the UAE’s EV community. 

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Tesla Sweden maintains Trelleborg port deal despite union blockade

As noted in a report from Dagens Arbete (DA), Tesla was able to maintain its storage agreement with the Port of Trelleborg.

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Andrzej Otrębski, CC BY-SA 4.0 , via Wikimedia Commons

Tesla Sweden is still storing vehicles at the Port of Trelleborg despite the ongoing blockades against the company from the country’s labor unions. 

Tesla still at Port of Trelleborg

As noted in a report from Dagens Arbete (DA), Tesla was able to maintain its storage agreement with the Port of Trelleborg. This allows the company to keep vehicles at the port while imports into Sweden continue. This was despite the Transport Workers’ Union’s blockade, which was aimed at halting the loading and unloading of Tesla vehicles in the area.

Local union leader Jörgen Wärja, chairman of Transport and an employee representative on the port company’s board, confirmed that the agreement was still active. “The agreement has not been terminated. You want to have the money instead of having empty warehouses. I understand the reason, but I do not support it,” Wärja said

The local union leader also noted that he visited Tesla’s storage area earlier this week. “There were a lot of cars. I was surprised that there were so many, actually,” he said.

Tesla had been able to bring vehicles into Sweden via passenger ferries at Trelleborg, a method that unions said allowed the company to bypass the blockade, DA noted. According to estimates from IF Metall, the workaround enabled Tesla to deliver thousands of cars to Sweden each year.

Port defends decision

The Port of Trelleborg did not issue a comment on its current agreement with Tesla, but said it had complied with union sympathy measures. Documents reviewed by Swedish media showed that the contract with Tesla was being extended in six-month intervals.

Port CEO Malin Collin noted that the port would not discuss individual customer arrangements. “We do not go into details regarding any customer agreements. We have continuous dialogue with potential tenants, and this is not unique to any location,” Collin wrote in an email.

The CEO added that the port was following legal requirements related to the labor dispute. “We have taken note of the Transport Workers’ Union’s decision on sympathy measures and are of course following applicable legislation and the requirements placed on us as employers,” Collin said.

Jörgen Wärja, for his part, stated that the issue was not whether Tesla’s imports into Sweden could be fully stopped, but whether the port should provide logistical support to the electric vehicle maker during an active conflict. “The port shouldn’t have anything to do with Tesla at all, we believe,” he said. “It’s purely moral. Whether you honor a conflict or not. If you say you support Transport’s sympathetic actions against Tesla, it becomes a double standard.”

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Elon Musk shares insights on SpaceX and Tesla’s potential scale

In a pair of recent posts on X, Musk argued that both companies operate in domains where growth is not linear, but exponential.

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Credit: xAI

Elon Musk outlined why he believes Tesla and SpaceX ultimately dwarf their competitors, pointing to autonomy, robotics, and space-based energy as forces that fundamentally reshape economic scale. 

In a pair of recent posts on X, Musk argued that both companies operate in domains where growth is not linear, but exponential.

Space-based energy

In a response to a user on X who observed that SpaceX has a larger valuation than all six US defense companies combined, Musk explained that space-based industries will eventually surpass the total economic value of Earth. He noted that space allows humanity to harness roughly 100,000 times more energy than Earth currently uses, while still consuming less than a millionth of the Sun’s total energy output.

That level of available energy should enable the emergence and development of industries that are simply not possible within Earth’s physical and environmental constraints. Continuous solar exposure in space, as per Musk’s comment, removes limitations imposed by atmosphere, weather, and land availability.

Autonomy and robots

In a follow-up post, Elon Musk explaned that “due to autonomy, Tesla is worth more than the rest of the auto industry.” Musk added that this assessment does not yet account for Optimus, Tesla’s humanoid robot. As per the CEO, once Optimus reaches scaled production, it could increase Earth’s gross domestic product by an order of magnitude, ultimately paving the way for sustainable abundance.

Even before the advent of Optimus, however, Tesla’s autonomous driving system already gives vehicles the option to become revenue-generating assets through services like the Tesla Robotaxi network. Tesla’s autonomous efforts seem to be on the verge of paying off, as services like the Robotaxi network have already been launched in its initial stages in Austin and the Bay Area. 

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