Energy
Tesla dumbs down Powerwall 2 offering but it actually comes in two versions

Tesla CEO Elon Musk revealed in October that the second generation of its residential storage battery — the Powerwall 2 — would have double the energy density of the original product and cost $5,000 with a built-in inverter. That’s a significant upgrade over the original, which needed a separate external inverter and was priced at $7,000 not including the price of the separate inverter and installation costs. More energy storage and an inverter for less money?
Yes and no. Green Tech Media has learned the company is quietly offering two versions of the Powerwall 2, one with a built in AC inverter and one that requires a separate external DC inverter. Why the difference? It depends on how a customer intends to use the Powerwall 2.
Ravi Manghani, energy storage director at GTM Research, has the answer. “The AC one maximizes efficiency for self-consumption in real time or export to the grid,” he says. “The DC system maximizes efficiency for customers who are less likely to consume during the daytime when the solar is producing — customers who need time-shifting to evening hours.” Offering the Powerwall 2 with and without an inverter allows the installer to custom design the system to meet the needs of individual customers.
Why is Tesla not touting the two different products? Manghani thinks it may be to avoid confusing customers with too much technical information. Explaining the difference between AC and DC current and then adding in the different efficiency levels of DC versus AC inverters may be too much information for non-professionals to comprehend. Customers are interested in price, not arcane details about how electricity works.
“Tesla is trying to simplify the information that it’s providing to the end customers, whereas other companies will specifically say ‘This is an AC-coupled system or a DC-coupled system,’” Manghini sasys. “It’s probably an information overload in some cases.”
Tesla now suggests that customers should allow an additional $1,500 for “installation and supporting hardware,” bringing the total to $7,000. That is very close to the number Tesla quoted when the original version of the Powerwall was introduced. The difference is the second generation product has twice the capacity of the original.
One other advantage of the Powerwall 2 with built in inverter is that it will interface seamlessly with existing rooftop solar systems. There are already a million such systems in Australia, Germany, and the US that could benefit from having a Powerwall added to the mix.
Both versions are priced at $5,500 even though one comes with a built in inverter and one does not. External inverters usually cost around $2,000 or more. Bear in mind that the installed price of a Powerwall system will vary widely, depending on the complexity of installation in each individual home. Tesla is expected to begin delivering Powerwall 2 in early 2017.
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.
Energy
Tesla inks multi-billion-dollar deal with LG Energy Solution to avoid tariff pressure
Tesla has reportedly secured a sizable partnership with LGES for LFP cells, and there’s an extra positive out of it.

Tesla has reportedly inked a multi-billion-dollar deal with LG Energy Solution in an effort to avoid tariff pressure and domesticate more of its supply chain.
Reuters is reporting that Tesla and LGES, a South Korean battery supplier of the automaker, signed a $4.3 billion deal for energy storage system batteries. The cells are going to be manufactured by LGES at its U.S. factory located in Michigan, the report indicates. The batteries will be the lithium iron phosphate, or LFP, chemistry.
Tesla delivers 384,000 vehicles in Q2 2025, deploys 9.6 GWh in energy storage
It is a move Tesla is making to avoid buying cells and parts from overseas as the Trump White House continues to use tariffs to prioritize domestic manufacturing.
LGES announced earlier today that it had signed a $4.3 billion contract to supply LFP cells over three years to a company, but it did not identify the customer, nor did the company state whether the batteries would be used in automotive or energy storage applications.
The deal is advantageous for both companies. Tesla is going to alleviate its reliance on battery cells that are built out of the country, so it’s going to be able to take some financial pressure off itself.
For LGES, the company has reported that it has experienced slowed demand for its cells in terms of automotive applications. It planned to offset this demand lag with more projects involving the cells in energy storage projects. This has been helped by the need for these systems at data centers used for AI.
During the Q1 Earnings Call, Tesla CFO Vaibhav Taneja confirmed that the company’s energy division had been impacted by the need to source cells from China-based suppliers. He went on to say that the company would work on “securing additional supply chain from non-China-based suppliers.”
It seems as if Tesla has managed to secure some of this needed domestic supply chain.
-
News2 weeks ago
Tesla is overhauling its Full Self-Driving subscription for easier access
-
Elon Musk2 weeks ago
Elon Musk shares unbelievable Starship Flight 10 landing feat
-
Elon Musk1 week ago
Tesla’s next-gen Optimus prototype with Grok revealed
-
News7 days ago
Tesla launches new Supercharger program that business owners will love
-
Elon Musk7 days ago
Tesla Board takes firm stance on Elon Musk’s political involvement in pay package proxy
-
News2 weeks ago
Tesla appears to be mulling a Cyber SUV design
-
News1 week ago
Tesla deploys Unsupervised FSD in Europe for the first time—with a twist
-
News2 weeks ago
Tesla expands crazy new lease deal for insane savings on used inventory