

Energy
Tesla Megapack targets utilities with massive 3MWh plug ‘n play battery
After Tesla’s worldwide success with Powerpack battery grid installations, the company has now designed and engineered a new battery product called the Megapack made specifically for utility-scale projects. This larger battery pack has a 60% increase in energy density over the current Powerpack and boasts up to 3 megawatt hours (MWhs) of storage capacity per pack as a result. Megapacks also come completely assembled from Tesla’s factory for quick installation, altogether providing customers with savings in both cost and time.
Battery storage grids are important in the global energy grid’s transition to sustainable energy sources, and the Megapack’s massive capacity and scalability will make it an ideal choice for regions looking for a simple and cost-efficient ways to convert or support their current infrastructure. “Using Megapack, Tesla can deploy an emissions-free 250 MW, 1 GWh power plant in less than three months on a three-acre footprint – four times faster than a traditional fossil fuel power plant of that size,” Tesla stated in their announcement.
Along with an AC interface, the Megapack also includes DC-connectivity for solar grids, essentially giving it plug ‘n play capability for any type of power grid interface. Tesla’s Megapack product page further describes its “All-in-One-System” design:
“Every Megapack arrives pre-assembled and pre-tested in one enclosure from our Gigafactory—including battery modules, bi-directional inverters, a thermal management system, an AC main breaker and controls. No assembly is required, all you need to do is connect Megapack’s AC output to your site wiring,” Tesla detailed.
Tesla’s latest product is also very competitive compared to other utility power storage options available on the market. Thanks to its high-density energy storage capacity and modularity, the Megapack needs 40% less space and 10x fewer parts than comparable systems, according to data published on Tesla’s product page. This will bode well for areas with space constraints or simply desiring a smaller footprint for energy storage.
The Megapack will be utilized for an upcoming energy storage project hosted by Pacific Gas and Electric Company (PG&E) in Moss Landing, California once final approval from the state’s Public Utilities Commission is received. Under the project, Tesla’s battery-powered utility installation will store 182.5 megawatts of excess solar or wind energy to provide supplemental power during peak grid times for up to 4 hours at a time. It will take the place of natural gas “peaker” power plants, offering a much more efficient and clean alternative for Moss Landing’s energy needs.
The original Tesla Powerwall was launched in 2015 and has since been used for storage projects worldwide by scaling its 210 kWh capacity. In the UK, one of the country’s largest bus operators is using Powerpacks to charge its fleet of 9 all-electric buses and has received positive reviews from both riders and drivers. The lack of diesel fumes is both a notable and welcome change. In South Australia, Tesla’s Hornsdale Powerpack installation ultimately became the largest lithium-ion battery in the world. Interestingly enough, Volkswagen’s Electrify America also recently decided to purchase and install Tesla Powerpacks at over 100 of its charging stations, totaling a capacity of 350 kWh with 210 kW rapid charging compatibility.
Tesla’s full Megapack product announcement is provided below:
Introducing Megapack: Utility-Scale Energy Storage
Less than two years ago, Tesla built and installed the world’s largest lithium-ion battery in Hornsdale, South Australia, using Tesla Powerpack batteries. Since then, the facility saved nearly $40 million in its first year alone and helped to stabilize and balance the region’s unreliable grid.
Battery storage is transforming the global electric grid and is an increasingly important element of the world’s transition to sustainable energy. To match global demand for massive battery storage projects like Hornsdale, Tesla designed and engineered a new battery product specifically for utility-scale projects: Megapack.
Megapack significantly reduces the complexity of large-scale battery storage and provides an easy installation and connection process. Each Megapack comes from the factory fully-assembled with up to 3 megawatt hours (MWhs) of storage and 1.5 MW of inverter capacity, building on Powerpack’s engineering with an AC interface and 60% increase in energy density to achieve significant cost and time savings compared to other battery systems and traditional fossil fuel power plants. Using Megapack, Tesla can deploy an emissions-free 250 MW, 1 GWh power plant in less than three months on a three-acre footprint – four times faster than a traditional fossil fuel power plant of that size. Megapack can also be DC-connected directly to solar, creating seamless renewable energy plants.
For utility-size installations like the upcoming Moss Landing project in California with PG&E, Megapack will act as a sustainable alternative to natural gas “peaker” power plants. Peaker power plants fire up whenever the local utility grid can’t provide enough power to meet peak demand. They cost millions of dollars per day to operate and are some of the least efficient and dirtiest plants on the grid. Instead, a Megapack installation can use stored excess solar or wind energy to support the grid’s peak loads.
Tesla developed its own software in-house to monitor, control and monetize Megapack installations. All Megapacks connect to Powerhub, an advanced monitoring and control platform for large-scale utility projects and microgrids, and can also integrate with Autobidder, Tesla’s machine-learning platform for automated energy trading. Tesla customers have already used Autobidder to dispatch more than 100 GWh of energy in global electricity markets. And, just as Tesla vehicles benefit from continued software updates over time, Megapack continues to improve through a combination of over-the-air and server-based software updates.
As the world’s transition to sustainable energy continues to accelerate, the market for advanced battery storage solutions is growing rapidly. In the past year alone, we have installed more than 1 GWh of global storage capacity with our current storage products, Powerwall and Powerpack, bringing our total global footprint to more than 2 GWh of cumulative storage. With Megapack, this number will continue to accelerate exponentially in the coming years.
To learn more about Megapack and how our energy storage solutions for utilities and commercial customers are accelerating the transition to sustainable energy, visit tesla.com/megapack.
Energy
Tesla recalls Powerwall 2 units in Australia

Tesla will recall Powerwall 2 units in Australia after a handful of property owners reported fires that caused “minor property damage.” The fires were attributed to cells used by Tesla in the Powerwall 2.
Tesla Powerwall is a battery storage unit that retains energy from solar panels and is used by homeowners and businesses to maintain power in the event of an outage. It also helps alleviate the need to rely on the grid, which can help stabilize power locally.
Powerwall owners can also enroll in the Virtual Power Plant (VPP) program, which allows them to sell energy back to the grid, helping to reduce energy bills. Tesla revealed last year that over 100,000 Powerwalls were participating in the program.
Tesla announces 100k Powerwalls are participating in Virtual Power Plants
The Australia Competition and Consumer Commission said in a filing that it received several reports from owners of fires that led to minor damage. The Australian government agency did not disclose the number of units impacted by the recall.
The issue is related to the cells, which Tesla sources from a third-party company.
Anyone whose Powerwall 2 unit is impacted by the recall will be notified through the Tesla app, the company said.
Energy
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.

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.
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.
Energy
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.

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.”

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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