A Tesla Megapack is powering a large housing factory completely off-grid in Patterson, California, with energy from a large array of on-site, PVGraf solar panels. The factory isn’t connected to the local power grid, and this is the first time a Tesla Megapack has been deployed and running completely off-grid. The system has been operating without any issues since November.
S2A Modular, a tech company that manufactures modular homes, tiny houses, and more that run on direct-current (DC) power, owns the Tesla Megapack, and its president and cofounder, John Rowland, granted Teslarati an exclusive interview. The company is also in the business of addressing housing for the homeless as well as making luxury homes and single-family homes.
John Rowland, S2A Modular’s president, and cofounder, granted Teslarati an exclusive interview. He shared with Teslarati that the company has 35 facilities, with five currently under construction and Tesla Megapacks on order. The first one in Patterson, California, is completely off the grid, and John has been working with Tesla to monitor its progress.
The delivery and installation of the Tesla Megapack, John explained, was “very smooth.” All of the infrastructure was in place, and it only took a couple of days to install the battery.
John told Teslarati that the reason why he went with Tesla is that he is a huge fan of both Tesla and Elon Musk. Initially, he had planned to buy the Tesla PowerPacks but by the time the factory came to fruition, Tesla Megapacks were available. As a homebuilder, he wanted to build homes that run on batteries. John said that engineered and built the second off-grid Tesla-powered home in North America.
“When I built that home, I decided I wanted to scale and build homes that were meant to run on batteries because this is how that house was engineered and built. It was the lowest voltage, lowest amperage home on the planet.”
John realized that in order to scale, he would need a factory and wanted to take the same approach that he has taken to engineering and building the homes and “engineer and build a factory that was made to run off-grid.
The hundred thousand-square-foot factory has no gas, or propane, only graphene solar panels, and a Tesla Megapack. “And no connection to the electrical grid.”
John pointed out that he has had a good relationship with Tesla since 2015, and once the Megapacks were available, he ordered one for each of the facilities.
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“We’ve got the first one in Patterson, California, and it’s been up and running a little over a month now. And it’s running like a champ. The whole factory’s powered off-grid, and it’s a huge success, so we’re looking to carry it over to our next facilities.”
John and his team and Tesla are monitoring the battery three times a day since it is completely off-grid. At first, there was a little hesitation on Tesla’s part for installing a completely off-grid Megapack, but John was able to win them over, and things are going smoothly.
“This is the first time that a Megapack was programmed to run off-grid. They’re set to take a trickle charge from the grid 24/7, and it took some convincing to get Tesla to allow us to do it this way. At first, they said, ‘you’re a couple of years ahead of us,’ but they finally agreed to allow us to do it, and now they’re using it as beta. They’re monitoring it just like we are.”
“One of Tesla’s head engineers that we work with told us that when we powered it up, it would take four days for our solar to charge the battery fully. We did it in seven and a half hours.”
John explained that the solar panels his company uses are made with specially manufactured graphene solar panels. “They’re the only company in the world using graphene, and they have 20 worldwide patents on it. At S2A, we paid and file our own UL( Underwriter Labs) to have our own UL-rated panel produced.”
When asked about feedback, John explained that he talks to Tesla’s engineers regularly and provides updates on the battery’s performance.
“It’s quite to our surprise It’s a 1.4-megawatt battery, and we’re able to keep it about 90% even with all of our equipment running. It’s really working better than our expectations.”
One thing John wasn’t expecting was the surplus of energy. He actually plans to connect the Megapack to the grid next year so that he can discharge the excess power and help take some of the burdens away from the local grid.
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“Our inverters are shutting off every day because we’re producing more power than we can use. Our factory is actually net-positive, and we will start contributing back to the grid next year.”
“We’ve got the battery set right now–when it reaches 97% capacity, the inverter shuts down and stops producing power. We’ve been monitoring it three times a day, and it’s been shutting off every day. Even with the factory running at full speed, we still produce excess energy.”
John added that he also purchased the Tesla Semi and plans to use them to deliver homes to customers.
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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SpaceX COO Gwynne Shotwell outlined ambitious plans for Starlink Mobile during the company’s August 4 Earnings call, signaling a direct challenge to U.S. wireless giants like AT&T, T-Mobile, and Verizon.
Shotwell noted that the three companies generate roughly $600 billion in combined annual revenue. “I anticipate us to be able to acquire quite a few of their customers because I think our service will be better,” she said. “We will eliminate dead zones leveraging the satellites in orbit. It will be better during any natural disaster… I’m quite excited about Starlink Mobile.”
SpaceX President & COO Gwynne Shotwell on @Starlink Mobile and its impact on Verizon, AT&T and T-Mobile:
“Roughly, between them, $600 billion a year. I anticipate us to be able to acquire quite a few of their customers. Our service will be better. We will eliminate dead zones… pic.twitter.com/UYZUkrGc0L
— Sawyer Merritt (@SawyerMerritt) August 4, 2026
SpaceX intends to combine its satellite constellation with terrestrial infrastructure. The company has acquired about 65 MHz of spectrum from EchoStar and plans to deploy next-generation Starlink Mobile satellites in 2027, with upgraded service targeted for the end of that year.
Shotwell described the enhanced network, leveraging more satellites and spectrum, as potentially “100 times better” than the current direct-to-cell offering, which already supports basic texting and app-based voice/video in coverage gaps through partnerships. She also indicated plans for low-cost cellular base stations that could integrate with existing Starlink dishes, creating a hybrid system for broader capacity in urban, suburban, and rural areas.
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For the general public, Starlink Mobile promises significant advantages. Satellite connectivity can fill gaps where traditional cell towers fail, delivering service in remote locations, mountains, or during outages caused by storms, wildfires, or infrastructure damage—conditions in which ground networks often collapse.
Users could enjoy more consistent coverage without relying solely on dense tower builds, potentially at competitive prices as SpaceX scales. The hybrid approach aims to support full mobile services, including higher-speed data, while working with unmodified smartphones over time.
These developments revive long-standing but unfounded rumors of a Musk-developed “Tesla phone.” Speculative claims of a “Pi Phone” or similar device with built-in Starlink connectivity have circulated for years on social media, often featuring fabricated images and details. Elon Musk has repeatedly denied any such plans, stating Tesla has no intention of entering the smartphone market unless forced by extreme circumstances with app stores.
No official product, filings, or development announcements have ever materialized; the rumors remain hoaxes.
The announcement quickly pressured telecom stocks. Shares of AT&T, Verizon, and T-Mobile fell between roughly 2 and 4 percent in after-hours and premarket trading as investors weighed the competitive threat from a hybrid satellite-terrestrial network.
While execution challenges remain—spectrum deployment, infrastructure rollout, and regulatory hurdles—Shotwell’s remarks mark SpaceX’s clearest signal yet of entering the consumer mobile market as a full competitor.
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Venture capitalist Chamath Palihapitiya has cautioned investors shorting SpaceX shares, drawing a direct parallel to the intense short-selling pressure Tesla faced in its early public years.
Responding to reports of elevated short interest in the newly public rocket, satellite, and AI company, Palihapitiya noted that similar dynamics played out with Tesla, where aggressive short sellers ultimately “went broke.”
SpaceX (NASDAQ: SPCX) went public on June 12, 2026, in the largest IPO on record, pricing at $135 per share. Shares quickly surged to an all-time high of $225.64 just days later, briefly implying a valuation exceeding $2 trillion. The stock has since retreated sharply amid valuation concerns, lockup expiration fears, and broader market dynamics.
By early August, it traded near $108–$125, representing a roughly 50 percent decline from the peak and bringing the market capitalization closer to the $1.5–1.7 trillion range. On August 4, shares closed up more than 9 percent at $125.33 ahead of earnings before facing pressure in after-hours and premarket trading.
Short interest has climbed dramatically. According to S3 Partners data widely cited in market reports, short positions reached approximately 219.3 million shares by late July, about 34 percent of the limited public float of roughly 640 million shares, and represented a notional value of around $24.6 billion.
Utilization of shares available to borrow hit 95 percent, with borrow fees rising. This level of shorting exceeded the dollar value of short bets against Tesla at the time and built rapidly ahead of two catalysts: the company’s first post-IPO earnings and an August 6 lockup expiration that could free up to 911.5 million additional shares.
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CEO Elon Musk has issued warnings of his own. In mid-July, as short interest approached one-third of the float, he posted that “the survival probability of firms who maintain a significant short position in SpaceX over time is very low,” reiterating his view that the company could ultimately be worth more than Earth if it achieves its goals.
On August 4, just before earnings, Musk responded to the latest short-interest data by saying, “I try to warn them, but they just double down.”
SpaceX delivered its first quarterly results as a public company after the close on August 4. Second-quarter revenue rose 92 percent year-over-year to $7.8 billion, beating consensus estimates near $6.8–6.9 billion.
The net loss narrowed to $541 million, or 9 cents per share, better than the roughly 23–24 cent loss expected. Starlink/connectivity contributed about $4.3 billion (up 66 percent), while the AI business generated $2.6 billion (up roughly 250 percent). Capital expenditures were heavy at $18.4 billion, largely tied to AI infrastructure. Management projected a $100 billion annualized revenue run rate by year-end 2026 and outlined a path toward $1 trillion in annual revenue by 2030.
The combination of Chamath’s historical reminder, Musk’s repeated alerts, and the company’s ambitious growth targets underscores the high-stakes debate surrounding SPCX. Short sellers are positioned for near-term supply pressure from the lockup, while long-term bulls point to Starlink scale, Starship progress, and AI compute expansion as reasons the bears may ultimately face the same fate as many early Tesla skeptics.
Investor's Corner
SpaceX and Nvidia team up on Musk’s orbital AI bet
SpaceX revealed a new Nvidia satellite partnership, then Musk pledged an exclusive Nvidia hardware commitment.
SpaceX and Nvidia are now working together on the hardware that will power Musk’s orbital data center ambitions. SpaceX announced on X on Tuesday that it is partnering with Nvidia to design the compute payload for Starmind AI1, the first satellite in a planned constellation built to run AI workloads directly in orbit. Each Starmind satellite will carry Nvidia’s Rubin GPUs and Vera CPUs, according to the post, which included renderings of the payload design.
The announcement landed hours before SpaceX’s first earnings call as a public company, where Musk went further, saying the company has committed to building its AI infrastructure exclusively on Nvidia hardware. “We think the Vera Rubin architecture is the best architecture. We think it’s the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia,” Musk told investors on the call,. “So we’re exclusive to Nvidia.”
Musk said SpaceX plans to deploy Nvidia’s Vera Rubin NVL72 rackscale system, codenamed Kyber, both on the ground and in space. He set a target of 2 gigawatts of compute capacity online by the end of this year, scaling to roughly 10 gigawatts by the end of 2027.
SpaceX’s newest Starmind will make earth data centers obsolete
Starmind has been in development since Musk confirmed the name in June, following an xAI trademark filing that tipped off the project before SpaceX made it official. The idea is massive in scope and instead of moving data down to ground based servers, satellites equipped with onboard processors and large solar arrays would compute AI workloads in orbit and beam results back to Earth. SpaceX has already filed with the FCC for a constellation of up to one million satellites to support the effort, citing constant solar power and the absence of zoning restrictions as advantages over terrestrial data centers.
The Nvidia exclusivity marks a shift in tone from just two weeks ago, when Musk was busy knocking down a report that SpaceX had ordered $52 billion worth of Nvidia GPUs through Foxconn, calling it fake news at the time. The dollar figure in that rumor may have been wrong, but the underlying direction seems correct. SpaceX’s AI division already leases Colossus compute capacity to Anthropic and Google, and Tuesday’s earnings report showed AI revenue climbing sharply as those deals ramp up.
Nvidia shares rose roughly 3% in Tuesday trading on the news, while SpaceX stock climbed nearly 9% during the day before giving back gains after hours as investors digested the earnings report’s capital spending figures.
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SpaceX is coming for wireless giants with Starlink Mobile
SpaceX shorts get warned by Musk ally, echoing Tesla’s early struggles
