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Tesla’s Powerpack farm in South Australia is about to get 50% larger

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Tesla’s big battery in South Australia, which was conceived following a bet between billionaires Mike Cannon-Brookes and Elon Musk to help the region with its energy troubles, is about to get a lot bigger. In a recent press release, Neoen confirmed that the Hornsdale Power Reserve will be receiving a 50 MW/64.5 MWh expansion, resulting in the world’s largest lithium-ion battery growing by another 50%. 

The expansion of the massive Tesla Powerpack farm will allow the battery installation to expand its services to providing digital or “virtual” inertia to the grid. This is a key service that, prior to the impending Powerpack expansion, was delivered only by synchronous machines, which are usually powered by coal, gas, or hydro. Once completed, the 50 MW/64.5 MWh addition will be capable of providing 3,000 “megawatt seconds,” or 50% of the state’s inertia requirements. 

While the initial installation of the Hornsdale Power Reserve was driven primarily by the efforts of Tesla CEO Elon Musk and fellow billionaire Mike Cannon-Brookes, the expansion of the South Australia big battery is poised to receive the full backing of the local government. The South Australian government, for one, is committing AUD 3 million (USD 2 million) to the project annually for five years in grant funding through its Grid-Scale Storage Fund. 

The Australian Renewable Energy Agency has also committed AUD 8 million (USD 5.46 million) in grant funding through its Advancing Renewables Program. Furthermore, the Powerpack farm expansion will be the first big battery project that would benefit from debt financing support from the Clean Energy Finance Corporation (CEFC). 

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Even before Neoen’s official confirmation, sightings of Powerpack units being transported to the Hornsdale Power Reserve area have been reported across the Tesla community. One such report, shared on YouTube by Hyperchange CEO Galileo Russell, estimated that the expansion will involve the installation of about 500-600 Tesla Powerpacks to the existing big battery. This figure was a rough estimate based on Powerpack sightings and statements from truck drivers who were transporting the battery units to the Hornsdale Power Reserve. 

The expansion of the Hornsdale Power Reserve generally bodes well for the ramp of Tesla’s energy business. In recent years, Tesla Energy has mostly taken a step back as the company worked on the Model 3 ramp. Now that Model 3 production is hitting its stride and facilities such as Gigafactory 3 are operational, Tesla is now able to focus more of its efforts in growing its energy business. This could work in Tesla’s favor too, as legendary billionaire investor Ron Baron has estimated that Tesla Energy has the potential to become a $500 billion business on its own. 

Watch out Hyperchange‘s report on the initial Tesla Powerpack sightings in the video below. 

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk teases massive new Tesla-xAI joint project known as ‘Digital Optimus’

It is the latest move by a Musk company to automate, streamline, and reduce the manual, monotonous, and tedious work currently performed by humans through AI and robotics development. Digital Optimus will be capable of processing and actioning the past five seconds of a real-time computer screen video and keyboard and mouse actions.

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Credit: Grok

Elon Musk teased a massive new project, to be developed jointly by Tesla and xAI, called “Digital Optimus” or “Macrohard,” the first development under Tesla’s investment agreement with xAI.

Musk announced on X that Digital Optimus will “be capable of emulating the function of entire companies.”

It is the latest move by a Musk company to automate, streamline, and reduce the manual, monotonous, and tedious work currently performed by humans through AI and robotics development. Digital Optimus will be capable of processing and actioning the past five seconds of a real-time computer screen video and keyboard and mouse actions.

Essentially, it will be an AI version of a desk worker in many capacities, including accounting, HR tasks, and others.

Musk said:

“Grok is the master conductor/navigator with deep understanding of the world to direct digital Optimus, which is processing and actioning the past 5 secs of real-time computer screen video and keyboard/mouse actions. Grok is like a much more advanced and sophisticated version of turn-by-turn navigation software. You can think of it as Digital Optimus AI being System 1 (instinctive part of the mind) and Grok being System 2. (thinking part of the mind).”

Its key applications would be used for enterprise automation, simulating entire companies, high-volume repetitive tasks, and potentially, future hybrid use with the Optimus robot, which would handle physical tasks, while Digital Optimus would handle the clerical work.

Tesla announces massive investment into xAI

The creation of a digital AI suite like Digital Optimus would help companies save time and money, as well as become more efficient in their operations through massive scalability. However, there will undoubtedly be concerns from people who are skeptical of a fully-integrated AI workhorse like this one.

From an energy consumption perspective and just a general concern for the human workforce, these types of AI projects are polarizing in nature.

However, Digital Optimus would be a great digital counterpart to Tesla’s physical Optimus robot, as it would be a hyper-efficient addition to any company that is looking for more production for less cost.

Musk maintains that there is no other company on Earth that will be able to do this.

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Tesla China posts strong February wholesale growth at Gigafactory Shanghai

The update was shared by Tesla observers on social media platform X, citing monthly China Passenger Car Association (CPCA) data.

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Credit: Grace Tao/Weibo

Tesla China sold 58,599 vehicles wholesale in February, reflecting strong year-over-year growth. The figure includes both domestic deliveries in China and vehicles exported to international markets.

The update was shared by Tesla observers on social media platform X, citing monthly China Passenger Car Association (CPCA) data.

Tesla’s February wholesale result represents a 91% increase year over year, compared with 30,688 vehicles in February 2025. Month over month, the result was down 15.2% from January, when Tesla China recorded 69,129 wholesale units.

The February total reflects combined sales of the Model 3 and Model Y produced at Gigafactory Shanghai. The facility produces the two vehicles for both domestic sales and exports.

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Gigafactory Shanghai continues to serve as Tesla’s primary vehicle export hub, supplying vehicles to markets across Asia and Europe. Data compiled by Tesla watchers shows that 18,485 vehicles were sold domestically in China in January 2026, while exports accounted for 50,644 units during the same period.

Tesla has also been extending financing programs in China as it pushes to strengthen domestic demand. The company recently extended its seven-year ultra-low-interest and five-year interest-free financing programs through March 31, marking the second extension of the promotion this year.

The financing initiative was first introduced on January 6 as a strategy aimed at offsetting higher ownership costs ahead of China’s planned 5% NEV purchase tax in 2026. The promotion was originally scheduled to expire at the end of January before being extended to February and then again through the end of the first quarter.

Tesla’s efforts come amid growing competition in China’s EV market. According to data compiled by CNEV Post, Tesla’s 2025 retail sales in China reached 625,698 vehicles, representing a 4.78% year-over-year decline. Part of that decline was linked to the Model Y changeover to its updated variant in early 2025, which temporarily reduced deliveries during the transition period.

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Tesla Model Y L spotted on transport trucks in Australia

One of the sightings was reported along Victoria Parade in Melbourne, and it showed multiple Model Y L vehicles on a transport carrier. 

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Tesla’s upcoming Model Y L has been spotted on transport trucks in Australia. Sightings of the six-seat extended wheelbase Model Y variant have been reported on social media platform X by members of the Australian Tesla community.

One of the sightings was reported along Victoria Parade in Melbourne, and it showed multiple Model Y L vehicles on a transport carrier. 

The sighting follows earlier observations by Tesla enthusiasts in Sydney, where a covered vehicle believed to be a Model Y L was spotted at a Supercharger.

The Sydney sighting drew attention after observers noted that the vehicle’s tare weight appeared to match the ADR approval listing for the Model Y L, suggesting it could indeed be the extended wheelbase variant of the electric SUV.

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Tesla has previously confirmed that the Model Y L will launch in Australia and New Zealand in 2026. The confirmation was reported by techAU following a media release from Tesla Australia and New Zealand.

The Model Y L expands the existing Model Y lineup with seating for six passengers. The vehicle features a longer body compared with the standard Model Y in order to accommodate a spacious second and third row.

Tesla has opted for a 2-2-2 seating configuration instead of a traditional seven-seat layout for the Model Y L. The design includes two individual seats in the middle row to provide easier access to the third row and additional passenger space.

Tesla Australia and New Zealand has also stated that the Model Y L will be covered under the company’s updated warranty structure beginning in 2026.

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Tesla has not yet announced pricing or official range figures for the Model Y L in Australia.

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