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Tesla secures new Megapack project with Arevon, bringing 2021 partnership to 1,000 MWh

Tesla's Megapack as a utility grid. (Credit: Tesla)

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Tesla and leading renewable energy company Arevon have signed a new master supply agreement that will supply the Scottsdale, Arizona-based entity with another 2 GW/6 GWh supply of Tesla Megapacks for an ongoing energy storage operation in California. The new contractual agreement brings Arevon’s 2021 total to 250 MW/1,000 MWh of battery energy storage systems, all powered by the Tesla Megapack at sites in California and Nevada.

The Megapack from Tesla, a large-scale energy storage battery that can handle sustainable energy projects on a commercial scale, was chosen to support the “Falcon Portfolio.” The Falcon Portfolio is a joint venture from Arevon and fellow energy company Tenaska, which aims to develop standalone energy storage projects in California load centers over the next four years. The facilities aim to reduce blackouts and outages for California-based customers who are unfortunately all too familiar with power issues, especially during the state’s wildfire season.

Credit: Tesla

Due to raging fires and scorching hot temperatures in the Golden State, energy usage skyrockets during these months due to increased air conditioning usage. Those who depend on the energy grid to power their homes are tasked with cutting back on use. At the same time, the State of California’s government encourages homeowners to take steps such as charging their electric cars at certain hours or cut back on air conditioning temperatures.

The facilities that Arevon and Tenaska are attempting to build through the Falcon Portfolio would be configured to provide “up to four hours of battery-delivered energy during peak times of day,” the company wrote. “Well-sited standalone battery systems improve local reliability and can be used to prevent grid outages.”

It was a no-brainer to choose the Tesla Megapack for the project, according to Arevon’s Chief Operating Officer Justin Johnson. He is pleased to be working with the Silicon Valley-based electric car and sustainable energy company on the project. Tesla’s already impressive portfolio of energy projects that have utilized the Megapack continues to grow, with Arevon’s newest venture being the most recent task for the Megapack.

Johnson said:

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“Arevon is at the forefront of powering the energy transition through solar and storage resources. We are pleased to be working with Tesla, securing a quality product that is in high demand. This agreement ensures that Arevon can deliver near-term storage solutions to our customers, mitigating the risk of supply shortages and project delays.”

Last week, Tesla broke ground on a new Megapack production facility in Northern California. The Megapack production plant in Lathrop, California, will not only help Tesla launch more commercial sustainable energy projects in partnerships like the one with Arevon, but it will also help the company combat demand for its battery storage units. CEO Elon Musk estimated that Megapack would be sold out through 2022, but this date could change depending on the completion of the Lathrop plant.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Cybertruck

Tesla Cybertruck undergoes interior mod that many owners wanted

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tesla cybertruck diy bench seat
Credit: @blueskykites | X

Tesla Cybertruck is significantly different from traditional pickups on the market in a lot of ways. However, one feature that was recently modified with its interior was a highly requested characteristic that is present in other trucks, but was void from Cybertruck.

Tesla went with a five-seat configuration with Cybertruck: two in the front and three in the back. The spacious interior is matched with plenty of storage, especially up front, as a pass-through, center console, and other storage options, but some Tesla fans wanted something different: bench seating.

Bench seating is popular in many full-size pickups and allows three passengers to sit up front. The middle seat is usually accompanied by a fold-down storage unit with cupholders.

Tesla decided to opt for no bench seating up front, despite the fact that it equipped bench seating in the unveiling in 2019. Interior photos from the unveiling event from nearly six-and-a-half years ago show Tesla had originally planned to have a six-seat configuration.

This was adjusted after the company refined the design:

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tesla cybertruck initial interior

(Tesla Cybertruck interior configuration in 2019)

Despite Tesla abandoning this design, it does not mean owners were willing to accept it. One owner decided to modify their Tesla Cybertruck interior to equip that third seat between the driver’s and passenger’s thrones.

The fit is snug, and while it looks great, it is important to remember that this does not abide byregulations, as it would require an airbag to be technically legal. Please do not do this at home with your own Cybertruck:

The Cybertruck is a popular vehicle in terms of publicity, but its sales have been underwhelming since first delivered to customers back in 2023. It’s hard to believe it’s been out for two-and-a-half years, but despite this, Tesla has not been able to come through on its extensive order sheet.

This is mostly due to price, as Cybertruck was simply not as affordable as Tesla originally planned. Its three configurations were initially priced at $39,990, $49,990, and $69,990. At release, Cybertruck was priced above $100,000.

This priced out many of those who had placed orders, which is the main reason Cybertruck has not lived up to its expectations in terms of sales. The adjustments to the specific features, like the removal of the bench seat, likely did not impact sales as much as pricing did.

This modification shows some creativity by Tesla owners, but also shows that the Cybertruck could always be the subject of a potential refresh to include some of these features. Tesla routinely adjusts its vehicle designs every few years, so maybe the Cybertruck could get something like this if it chooses to refresh its all-electric pickup.

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Elon Musk

Tesla CEO Elon Musk drops massive bomb about Cybercab

“And there is so much to this car that is not obvious on the surface,” Musk said.

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Credit: Tesla

Tesla CEO Elon Musk dropped a massive bomb about the Cybercab, which is the company’s fully autonomous ride-hailing vehicle that will enter production later this year.

The Cybercab was unveiled back in October 2024 at the company’s “We, Robot” event in Los Angeles, and is among the major catalysts for the company’s growth in the coming years. It is expected to push Tesla into a major growth phase, especially as the automaker is transitioning into more of an AI and Robotics company than anything else.

The Cybercab will enable completely autonomous ride-hailing for Tesla, and although its other vehicles will also be capable of this technology, the Cybercab is slightly different. It will have no steering wheel or pedals, and will allow two occupants to travel from Point A to Point B with zero responsibilities within the car.

Tesla shares epic 2025 recap video, confirms start of Cybercab production

Details on the Cybercab are pretty face value at this point: we know Tesla is enabling 1-2 passengers to ride in it at a time, and this strategy was based on statistics that show most ride-hailing trips have no more than two occupants. It will also have in-vehicle entertainment options accessible from the center touchscreen.

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It will also have wireless charging capabilities, which were displayed at “We, Robot,” and there could be more features that will be highly beneficial to riders, offering a full-fledged autonomous experience.

Musk dropped a big hint that there is much more to the Cybercab than what we know, as a post on X said that “there is so much to this car that is not obvious on the surface.”

As the Cybercab is expected to enter production later this year, Tesla is surely going to include a handful of things they have not yet revealed to the public.

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Musk seems to be indicating that some of the features will make it even more groundbreaking, and the idea is to enable a truly autonomous experience from start to finish for riders. Everything from climate control to emergency systems, and more, should be included with the car.

It seems more likely than not that Tesla will make the Cybercab its smartest vehicle so far, as if its current lineup is not already extremely intelligent, user-friendly, and intuitive.

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Investor's Corner

Tesla Q4 delivery numbers are better than they initially look: analyst

The Deepwater Asset Management Managing Partner shared his thoughts in a post on his website.

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Credit: Tesla Asia/X

Longtime Tesla analyst and Deepwater Asset Management Managing Partner Gene Munster has shared his insights on Tesla’s Q4 2025 deliveries. As per the analyst, Tesla’s numbers are actually better than they first appear. 

Munster shared his thoughts in a post on his website. 

Normalized December Deliveries

Munster noted that Tesla delivered 418k vehicles in the fourth quarter of 2025, slightly below Street expectations of 420k but above the whisper number of 415k. Tesla’s reported 16% year-over-year decline, compared to +7% in September, is largely distorted by the timing of the tax credit expiration, which pulled forward demand.

“Taking a step back, we believe September deliveries pulled forward approximately 55k units that would have otherwise occurred in December or March. For simplicity, we assume the entire pull-forward impacted the December quarter. Under this assumption, September growth would have been down ~5% absent the 55k pull-forward, a Deepwater estimate tied to the credit’s expiration.

For December deliveries to have declined ~5% year over year would imply total deliveries of roughly 470k. Subtracting the 55k units pulled into September results in an implied December delivery figure of approximately 415k. The reported 418k suggests that, when normalizing for the tax credit timing, quarter-over-quarter growth has been consistently down ~5%. Importantly, this ~5% decline represents an improvement from the ~13% declines seen in both the March and June 2025 quarters.

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Tesla’s United States market share

Munster also estimated that Q4 as a whole might very well show a notable improvement in Tesla’s market share in the United States. 

“Over the past couple of years, based on data from Cox Automotive, Tesla has been losing U.S. EV market share, declining to just under 50%. Based on data for October and November, Cox estimates that total U.S. EV sales were down approximately 35%, compared to Tesla’s just reported down 16% for the full quarter.  For the first two months of the quarter, Cox reported Tesla market share of roughly a 65% share, up from under 50% in the September quarter.

“While this data excludes December, the quarter as a whole is likely to show a material improvement in Tesla’s U.S. EV market share.

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