Energy
Tesla’s giant Moss Landing Megapack battery storage project: How is it doing now?
Tesla’s Megapack farm in Moss Landing, California, has gone through quite a journey since the project was approved by the California Public Utilities Commission back in 2018. Comprised of 256 Megapacks, the 182.5 MW / 730 MWh installation would be capable of powering an estimated 136,500 homes for several hours during periods of high demand. The system is also upgradeable, with Tesla’s contract with PG&E suggesting that the battery could be ramped to 1.1 GWh in the future.
Similar to Tesla’s other high-profile energy projects, the Moss Landing Megapack farm, also known as the Elkhorn Battery Energy Storage Facility, would enhance the grid’s reliability by addressing capacity deficiencies due to increased local energy demand. It would also participate in the California Independent System Operator (CAISO) markets, providing both energy and ancillary services.
A Quick Background
It should be noted that the Megapack-powered Elkhorn Battery Energy Storage Facility is only one of four battery projects that were proposed by Pacific Gas and Electric (PG&E). Among the four, three are owned and operated by a third party — only the Tesla-powered Elkhorn Battery is owned and operated by PG&E itself. As explained by Paul Doherty, a PG&E spokesperson, the utility has two underlying contracts with Tesla regarding the facility — an Engineering, Procurement and Construction (EPC) agreement to build the battery farm, and a Long-Term Performance and Maintenance Agreement (LTPMA) that requires the EV maker to provide regular maintenance to the system for over 20 years.
The Tesla-powered Elkhorn Battery is not the largest battery among the four systems proposed by PG&E. That honor goes to the Vistra Energy Storage Facility, which features a 300 MW / 1,200 MWh Phase 1 and a 100 MW / 400 MWh Phase 2 system. Unlike the Tesla Megapack farm, which was built on a 4.5-acre plot of land in Moss Landing, the Vistra Energy Storage Facility was built into what was previously a gas-fired power plant. Utilizing over several thousand TR1300 battery racks supplied by LG Energy Solution, Vistra’s big battery was a symbol of the change happening in California’s energy sector.
Things, however, have not always been smooth sailing.
Challenges Over the Years
Being a project involving Tesla, it was no surprise that entities emerged to oppose the Elkhorn Battery project. After the Tesla-powered battery storage project was opened to public submissions about its potential environmental impacts, the California Unions for Reliable Energy took it upon themselves to stop the initiative. The union argued that Monterey County failed to meet the standards of the California Environmental Quality Act since the county should have looked further into the possibility of Tesla’s batteries overheating and exploding. The group also warned that the Tesla batteries could potentially harm the purity of the groundwater at the Moss Landing area.
These efforts proved to be in vain, however, as on February 2020, the Monterey County Planning Commission decided to approve the Tesla Megapack-powered Elkhorn Battery unanimously. Construction was set for late March, and expectations were high that it would take about one and a half years to complete. However, another speed bump for the project came in the form of the Covid-19 pandemic, which caused progress in the project to be delayed. Construction ultimately began in July 2020, and by early 2021, drone flyovers of the site showed that the Megapack installations were going smoothly.
PG&E spokesperson Doherty has informed Teslarati that as of writing, all the Tesla Megapacks have been successfully installed. The system is “currently undergoing final testing and certification, and is anticipated to be operational before Summer 2022,” pending the results of its final tests. Granted, this represents a delay from the facility’s initial targets, but PG&E’s apparent intent on being extra cautious is understandable.
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An unexpected challenge for the batteries at Moss Landing came sometime last year, and while it did not involve the Tesla Megapack-powered Elkhorn Battery, it did result in energy storage projects being placed under a microscope. In early September 2021, a number of battery modules from the Phase 1 area of the Vistra Energy Storage Facility overheated, triggering the facility’s sprinkler systems. Local fire crews were sent to the site, and Vistra decided to shut down the Phase 1 zone until an investigation was completed. At this time, the Vistra Battery’s 100 MW / 400 MWh Phase 2 was just completed, so that part of the facility remained operational.
Unfortunately, the Vistra Battery’s Phase 2 area got involved in another overheating incident in February 2022. Similar to the incident in September 2021, the batteries in the Vistra facility’s Phase 2 area triggered a fire alarm. The local fire department attended to the facility once more, where they found roughly ten battery racks that were melted. This incident, which happened within five months since the September 2021 issue, caused the reactivation efforts for the Phase 1 area to be paused and Phase 2 to be shut down. This meant that the Vistra battery, at least until investigations are completed for both incidents, will likely remain offline.
PG&E’s Tesla Megapack Management System
What is rather interesting about the Elkhorn Battery Energy Storage Facility is the fact that while it features Tesla’s flagship battery storage units, the Megapack batteries themselves would not be managed by software from the electric vehicle maker. Instead of Tesla’s Autobidder platform, PG&E has opted to utilize “Fluence’s AI-powered Trading Platform to provide optimization and market bidding services,” confirmed Doherty.
Tesla’s Autobidder platform has been successfully operating at the Hornsdale Power Reserve (HPR) in South Australia, where it has effectively added competition to drive down energy prices in the area. But inasmuch as Autobidder is designed to work seamlessly with products like the Megapack, Fluence’s Trading Platform is pretty powerful and capable on its own. Seyed Madaeni, the chief digital officer of Fluence, expressed his optimism for the company’s AI-powered solution and its use in the Tesla-powered Elkhorn Battery Energy Storage Facility.
“PG&E was one of the first utilities to appreciate the need for a sophisticated AI-enabled bidding technology to optimize its energy storage assets. This technology-agnostic software provides PG&E with a single tool that can optimize not only the Moss Landing project, but potentially entire portfolios of generation and storage resources to enhance affordability of resources. We are excited to work with PG&E to use advanced technology to improve the efficiency and reliability of the CAISO market and lower costs for California consumers,” Madaeni said.
Future Expansions
While the Moss Landing batteries have faced their own fair share of challenges, PG&E remains extremely optimistic about energy storage as a whole. Depending on the success of the Tesla Megapack-powered Elkhorn Battery, the system could be expanded even further to 1.1 GWh. All signs seem to be pointing to this scenario, especially considering the state’s intense focus on sustainability. Interestingly enough, Tesla’s Megapacks courted some controversy themselves last year when one unit in the Victoria Big Battery in Australia caught fire during tests. The incident ultimately damaged two Megapack units, and it incited a lot of skepticism over the potential dangers of battery storage technology.
If PG&E’s massive Tesla Megapack farm could prove itself as reliable as the now-iconic Powerpack-powered Hornsdale Power Reserve in South Australia, then the project could potentially accelerate the adoption of battery storage systems in the near future. PG&E definitely seems to be confident about the potential of battery storage solutions, with the utility moving forward with Vistra on plans to expand the Vistra Battery even further.
Vistra spokesperson Meranda Cohn has stated that the incidents from September 2021 and February 2022 would not impact the companies’ push to move forward with its battery project. PG&E spokesperson Doherty was on the same page, telling the Monterey County Weekly that he has “full confidence” in the project and that an analysis of the incidents in September 2021 and February 222 revealed that the batteries were actually not at fault. The PG&E spokesperson further noted that the utility is committed to “advancing the field of fire safety at battery storage facilities,” which could be highlighted by the fact that it was awarded for its fire safety work at its Tesla-powered Elkhorn Battery Energy Storage Facility.
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Tesla Energy has introduced the Powerwall Lease in conjunction with Tesla Electric, making the service available in Texas. This new option delivers whole-home backup power using two Powerwall units for a net monthly cost of $35 after credits, accompanied by a low fixed electricity rate.
Under the lease terms, customers pay a one-time order fee of $100. The base lease payment for the two Powerwalls is approximately $122 per month during the first year, subject to a 3 percent annual escalator thereafter. Enrollment in a qualifying Tesla Electric Backup plan or Virtual Power Plant plan provides an $87 monthly credit.
Powerwall Lease is now available with Tesla Electric in Texas
Whole-home backup for $35/month, with a low fixed electricity rate
– Two Powerwalls, $0 installation
– Storm Watch outage protection
– One app to manage it all pic.twitter.com/oTzqc6K3aF— Tesla Energy (@teslaenergy) August 13, 2026
This credit lowers the effective cost to roughly $35 per month plus applicable tax.
Installation of the standard system carries no additional charge. The package features Storm Watch for outage protection and allows complete management through a single Tesla application. The system supplies continuous whole-home backup capability.
The Powerwall system enables households to maintain electricity during severe storms that disrupt the utility grid. When outages occur, the batteries automatically provide seamless backup power to the home.
Tesla announces 100k Powerwalls are participating in Virtual Power Plants
Tesla Storm Watch monitors weather forecasts and ensures the units are fully charged ahead of anticipated severe weather events so that power remains available throughout the disruption, keeping lights, refrigeration, and other essential systems operating without interruption.
Availability is restricted to select Texas locations where retail electric choice exists. Participants must lease exactly two Powerwall units and maintain continuous enrollment with Tesla Electric. Solar panels cannot be included under this particular lease arrangement.
The monthly credit activates automatically once the system is installed, receives permission to operate, and enrollment is confirmed. To retain the credit, customers are required to stay enrolled in Tesla Electric and fulfill all program conditions.
Nonstandard installations that involve electrical upgrades or special permitting may lead to extra expenses and might impact eligibility for the credit, so be sure to check with either your installer or Tesla to ensure you will still qualify.
Elon Musk
Inside Tesla’s secretive $10 Billion “Project Crystal Sun” filing
Tesla filed for a $10.1 billion Fort Bend solar factory, but the site isn’t confirmed.
Tesla has filed paperwork in Texas for a second massive manufacturing project in the same week it locked down its chip fabrication site, this time for a $10.1 billion solar cell plant in Fort Bend County. The filing, submitted July 22 under the state’s Jobs, Energy, Technology and Innovation Act and first surfaced by Sawyer Merritt on X, lists an internal project name of “Project Crystal Sun” and targets a site off FM 762 and FM 1994 near Richmond, about 40 minutes outside Houston.
Tesla is planning to build a $10.1 billion vertically integrated solar cell manufacturing facility in Fort Bend County, Texas, about 40 minutes from Houston, according to a new public application filing.
Tesla is aiming to start construction this year and finish in 2028, with… pic.twitter.com/f3HIK5HGST
— Sawyer Merritt (@SawyerMerritt) August 7, 2026
The application, prepared by Kroll Tax Services on Tesla’s behalf, spans five parcels totaling roughly 3,000 acres within the Lamar Consolidated Independent School District. Tesla wants a 10 year property tax limitation in exchange for the investment, split as $1.5 billion in real property and $8.6 billion in equipment and personal property. The company projects 9,712 permanent jobs once the plant reaches full operation, with 1,147 peak construction jobs during a build window running from this year through 2028 and commercial operations targeted for the first quarter of 2029.
Tesla is not fully committed to Fort Bend County yet. The filing states the company is weighing the site against an unnamed out of state alternative, and frames the tax abatement as what would make Texas competitive against that option. If the district and county decline the incentive, Tesla says it may build elsewhere.
Tesla Megapack Megafactory in Texas advances with major property sale
The plant would handle the full solar cell production chain in one facility, according to the filing, covering wafer and ingot manufacturing, coating, metallization and printing lines, cell testing, automated material handling and cleanroom infrastructure. That scope points to Tesla vertically integrating a part of its supply chain it currently sources largely from overseas partners, mirroring the approach behind its expanding Megapack production in Brookshire, Texas, where Tesla has already built out two buildings for its grid battery business.
The timing lines up closely with Tesla and SpaceX’s other big Texas commitment this month. SpaceX confirmed its Terafab chip factory would land in Grimes County days before this filing surfaced, with construction on that $16.8 billion project starting almost immediately after local officials met with residents. Terafab is meant to produce the AI chips running Tesla’s Optimus robots and Full Self-Driving software, while a solar cell plant would feed a different part of the business, the panels and storage systems Tesla sells to homeowners, businesses and utilities, and increasingly needs to power its own data centers.
Musk has talked about building domestic solar manufacturing capacity before, tying it to the amount of power Tesla’s AI ambitions will require.
Tesla just trademarked ‘MEGAPOD’ with the United States Patent and Trademark Office (USPTO), its latest move in what seems to be a hint that the company is incredibly focused on its AI efforts and storage needs as compute increases.
The application carries serial number 99893717 and lists the applicant as Tesla, Inc., located at 1 Tesla Road, Austin, Texas 78725.
The filing remains in ‘live pending’ status, and it is a new application waiting for assignment to an examining attorney. It has not yet been published or registered.
Tesla just trademarked MEGAPOD
Summary:
“Modular data center hardware systems for artificial intelligence computing, comprised of computer servers, computer hardware for artificial intelligence processing, computer networking hardware, electrical power distribution units, and… pic.twitter.com/3l85DsKadl— Robin (@xdNiBoR) June 19, 2026
According to the official goods and services description in the application, Tesla describes ‘MEGAPOD’ as:
“Modular data center hardware systems for artificial intelligence computing, comprised of computer servers, computer hardware for artificial intelligence processing, computer networking hardware, electrical power distribution units, and cooling systems, sold as a unit; self-contained modular computing hardware systems for artificial intelligence workloads; integrated computer hardware platforms for artificial intelligence computing, namely, enclosures containing computer hardware, power distribution hardware, and cooling hardware, sold as a unit; downloadable software for monitoring, managing, optimizing, and regulating modular artificial intelligence computing hardware systems.”
This description specifies complete, self-contained modular units that integrate servers and specialized AI processing hardware with networking components, power distribution, and cooling systems. It also includes associated downloadable software for oversight and optimization of these systems. The language emphasizes hardware sold “as a unit” and enclosures that combine the necessary elements for AI computing workloads.
Tesla has an established history of developing and commercializing modular hardware systems. Its Megapack product line, for example, consists of utility-scale battery energy storage systems designed as containerized units for grid applications. The MEGAPOD filing follows a similar pattern of protecting a name for modular, integrated hardware platforms, this time focused on artificial intelligence computing infrastructure.
This could be an early move, especially as Tesla did not have trademark rights to the word ‘Cybercab,’ the name of its self-driving, ride-hailing-focused vehicle.
Trademark applications of this type allow companies to secure priority rights to a name for defined categories of goods and services. The USPTO examines applications for compliance with legal requirements, including distinctiveness and absence of conflicts with prior marks. If the application proceeds successfully through examination, publication, and any opposition period, it could result in a federal trademark registration providing nationwide protection. This is what Tesla’s obvious intention is with ‘MEGAPOD.’
Public reports and analysis suggest MEGAPOD could represent modular, container-style AI computing pods designed for easy deployment. These would bundle servers, AI accelerators, power systems, and cooling into self-contained units suitable for distributed AI workloads. This approach aligns with Tesla’s announced AI compute strategy.
In March 2026, Elon Musk outlined plans for “Digital Optimus” (also referred to as Macrohard), a joint Tesla-xAI project for AI agents capable of handling complex digital tasks. The plans include running these agents on Tesla’s AI4 hardware in parked vehicles as well as dedicated compute units installed at Supercharger stations, which collectively offer substantial unused electrical capacity.
What is Digital Optimus? The new Tesla and xAI project explained
A modular hardware platform like the one described in the ‘MEGAPOD’ filing would support scalable, rapid deployment of such distributed compute resources. It could complement Tesla’s other AI infrastructure efforts, including the Dojo supercomputer used for training models and the development of AI systems for autonomous driving and robotics, by enabling edge or regional AI inference without reliance on traditional centralized data centers.
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