Tesla is mulling a potential plan to build a battery storage production plant alongside its potential electric vehicle production facility in India, according to a new report.
Tesla has been attempting to come to terms with the Indian government on an electric vehicle production plant for several years, but the talks have gotten more intense over the past few months as the automaker wants to build a factory that would produce a $24,000 car.
CEO Elon Musk has said this year that Tesla will hopefully come to terms with the Indian government this year, with the big bottleneck being the two parties not able to agree on terms regarding import duties that would allow the company to test demand by sending cars from other countries.
These duties price out many customers as, in some cases, they can double the price of a car. However, there has been more movement in the direction of an agreement in terms of this year, and it may not involve importing.
Now, Reuters is reporting that Tesla is planning to take it a step further by building energy storage products in India. Tesla is proposing that it could support India’s battery storage capabilities with the Powerwall, which stores excess energy generated from solar panels.
Tesla and India may not come to terms on import duties, but the plan to bring a wider business model to the country may be the bridge that is needed to make a deal.
One source said that the government wants to help create a fair business model for Tesla as it could offer subsidies for those who purchase energy storage products.
Tesla and the Indian government are still reviewing the proposal, and they are reportedly “keen” on the idea. However, it is still under review.
The source also said:
“Large policy level calibration will be required. Tesla’s intent is to have the Powerwall business in India.”
Tesla could be India’s answer to peak-time shortages and demand surges as the country has boosted supply to towns and villages. India is dependent on coal-based power generation, and its 1.4 billion people depend on non-renewable sources for nearly 58 percent of its energy needs. Non-fossil fuels make up the remaining percentage, with Solar being the biggest contributor, according to the country’s Ministry of Power.
Powerwall would help residents avoid outage issues, and Prime Minister Narendra Modi was extremely interested in how it could help farmers when he met with Tesla brass in 2015.
“Enjoyed discussion on how battery technology can help farmers,” he said. Musk also said he had a productive talk with Modi about solar and how batteries and storage systems can empower rural communities.
“The Prime Minister was very keen to see how we could utilize the battery power ball concept to leapfrog development in India,” Vikas Swarup, Spokesman of the Ministry of External Affairs, said in 2015.
Tesla just recently launched a new version of the Powerwall as well, which offers new and improved specifications that will help keep the lights on longer and avoid outages.
Tesla Powerwall 3 specs officially listed on company website
Please email me with questions and comments at joey@teslarati.com. I’d love to chat! You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
Energy
Tesla launches first Virtual Power Plant in UK – get paid to use solar
Tesla has launched its first-ever Virtual Power Plant program in the United Kingdom.
Tesla has launched its first-ever Virtual Power Plant program in the United Kingdom. This feature enables users of solar panels and energy storage systems to sell their excess energy back to the grid.
Tesla is utilizing Octopus Energy, a British renewable energy company that operates in multiple markets, including the UK, France, Germany, Italy, Spain, Australia, Japan, New Zealand, and the United States, as the provider for the VPP launch in the region.
The company states that those who enroll in the program can earn up to £300 per month.
Tesla has operated several VPP programs worldwide, most notably in California, Texas, Connecticut, and the U.S. territory of Puerto Rico. This is not the first time Tesla has operated a VPP outside the United States, as there are programs in Australia, Japan, and New Zealand.
This is its first in the UK:
Our first VPP in the UK
You can get paid to share your energy – store excess energy in your Powerwall & sell it back to the grid
You’re making £££ and the community is powered by clean energy
Win-win pic.twitter.com/evhMtJpgy1
— Tesla UK (@tesla_uk) July 17, 2025
Tesla is not the only company that is working with Octopus Energy in the UK for the VPP, as it joins SolarEdge, GivEnergy, and Enphase as other companies that utilize the Octopus platform for their project operations.
It has been six years since Tesla launched its first VPP, as it started its first in Australia back in 2019. In 2024, Tesla paid out over $10 million to those participating in the program.
Participating in the VPP program that Tesla offers not only provides enrolled individuals with the opportunity to earn money, but it also contributes to grid stabilization by supporting local energy grids.
Energy
Tesla Lathrop Megafactory celebrates massive Megapack battery milestone
The Tesla Megapack is the backbone of Tesla Energy’s battery deployments.
The Tesla Lathrop Megafactory recently achieved a new milestone. As per the official Tesla Megapack account on X, the Lathrop Megafactory has produced its 15,000th Megapack 2 XL battery.
15,000 Megapack Batteries
Tesla celebrated the milestone with a photo of the Lathrop Megafactory team posing with a freshly produced Megapack battery. To commemorate the event, the team held balloons that spelled out “15,000” as they posed for the photo.
The Tesla Megapack is the backbone of Tesla Energy’s battery deployments. Designed for grid-scale applications, each Megapack offers 3.9 MWh of energy and 1.9 MW of power. The battery is extremely scalable, making it perfect for massive energy storage projects.
More Megafactories
The Lathrop Megafactory is Tesla’s first dedicated facility for its flagship battery storage system. It currently stands as the largest utility-scale battery factory in North America. The facility is capable of producing 10,000 Megapack batteries every year, equal to 40 GWh of clean energy storage.
Thanks to the success of the Megapack, Tesla has expanded its energy business by building and launching the Shanghai Megafactory, which is also expected to produce 40 GWh of energy storage per year. The ramp of the Shanghai Megafactory is quite impressive, with Tesla noting in its Q1 2025 Update Letter that the Shanghai Megafactory managed to produce over 100 Megapack batteries in the first quarter alone.
Tesla Energy’s Potential
During the first quarter earnings call, CEO Elon Musk stated that the Megapack is extremely valuable to the energy industry.
“The Megapack enables utility companies to output far more total energy than would otherwise be the case… This is a massive unlock on total energy output of any given grid over the course of a year. And utility companies are beginning to realize this and are buying in our Megapacks at scale,” Musk said.
Energy
Tesla Megapacks powers the xAI Colossus supercomputer
Tesla Megapacks step in to stabilize xAI’s Colossus supercomputer, replacing natural gas turbines. Musk’s ventures keep intertwining.
Tesla Megapack batteries will power the xAI Colossus supercomputer in Memphis to ensure power stability. The collaboration between Tesla and xAI highlights the synergy among Elon Musk’s ventures.
The artificial intelligence startup has integrated Tesla Megapacks to manage outages and demand surges, bolstering the facility’s reliability. The Greater Memphis Chamber announced that Colossus, recently connected to a new 150-megawatt electric substation, is completing its first construction phase. This transition addresses criticism from environmental justice groups over the initial use of natural gas turbines.
“The temporary natural gas turbines that were being used to power the Phase I GPUs prior to grid connection are now being demobilized and will be removed from the site over the next two months.
“About half of the operating turbines will remain operating to power Phase II GPUs of xAI until a second substation (#22) already in construction is completed and connected to the electric grid, which is planned for the Fall of 2025, at which time the remaining turbines will be relegated to a backup power role,” the Chamber stated.
xAI’s rapid development of Colossus reflects its ambition to advance AI capabilities, but the project has faced scrutiny for environmental impacts. The shift to Megapacks and grid power aims to mitigate these concerns while ensuring operational continuity.
The Megapack deployment underscores the collaboration among Musk’s companies, including Tesla, SpaceX, Neuralink, and The Boring Company. Tesla appears to be the common link between all of Musk’s companies. For example, The Boring Company built a tunnel in Giga, Texas. In addition, Musk has hinted at a potential collaboration between the Tesla Optimus Bot and Neuralink. And from January 2024 to February 2025, xAI invested $230 million in Megapacks, per a Tesla filing.
Tesla Energy reported a 156% year-over-year increase in Q1 2025, deploying 10.4 GWh of storage products, including Megapacks and Powerwalls. Tesla’s plans for a new Megapack factory in Waller County, Texas, which is expected to create 1,500 jobs in the area, further signal its commitment to scaling energy solutions.
As xAI leverages Tesla’s Megapacks to power Colossus, the integration showcases Musk’s interconnected business ecosystem. The supercomputer’s enhanced stability positions xAI to drive AI innovation, while Tesla’s energy solutions gain prominence, setting the stage for broader technological and economic impacts.
LIVE BLOG: Tesla (TSLA) Q2 2025 earnings call updates
Tesla (TSLA) Q2 2025 earnings results
Elon Musk reveals big plans for Tesla Optimus at the Supercharger Diner
-
Elon Musk7 days agoWaymo responds to Tesla’s Robotaxi expansion in Austin with bold statement
-
News7 days agoTesla exec hints at useful and potentially killer Model Y L feature
-
Elon Musk1 week agoElon Musk reveals SpaceX’s target for Starship’s 10th launch
-
Elon Musk1 week agoTesla ups Robotaxi fare price to another comical figure with service area expansion
-
News7 days agoTesla’s longer Model Y did not scale back requests for this vehicle type from fans
-
News7 days ago“Worthy of respect:” Six-seat Model Y L acknowledged by Tesla China’s biggest rivals
-
News1 week agoFirst glimpse of Tesla Model Y with six seats and extended wheelbase
-
Elon Musk1 week agoElon Musk confirms Tesla is already rolling out a new feature for in-car Grok