Energy
Tesla Solar Roof is becoming a legitimate bargain against high-end roofs + solar
Tesla took a while before it was able to start a serious ramp of its Solar Roof tiles, but it appears that the wait will be worth it. As the electric car maker continues to expand its Solar Roof installations in the United States, it is starting to become evident that the aesthetically-pleasing solar shingles are a bargain in its class. At its current prices, Tesla’s Solar Roof presents savings compared to high-end roof options plus a traditional solar system.
The Tesla Solar Roof is actually one of the least expensive in its class of building-integrated PV options. While it’s true that the Solar Roof’s competitors are fewer than, say, the Model 3’s rivals in the EV segment, the flagship shingles do have some competition. These include DeSol’s Power Tiles, as well as the Luma Solar Tiles, both of whom adopt the same concept as the Tesla Solar Roof. The Solar Roof undercuts both competitors in price.
The Tesla Solar Roof is estimated to cost about $2.11 per installed watt, as noted by Green Building Advisor. This is far more affordable than the price of the DeSol Power Tiles, which stand at about $7 per installed watt. Even the Luma Solar Tiles, which are closer in appearance to Tesla’s Solar Roof V3, command a price of about $4.50 per installed watt. But this is not all, as the Solar Roof could be a reasonable alternative to a setup that involves traditional roofing materials and conventional solar panels as well.
A rough comparison outlined in a previous webinar from Solar Oregon estimates that replacing an entire 2,000 square-foot roof with Tesla Solar Roof tiles will cost about $42,500. This is more expensive than installing a regular asphalt-shingle roof with a traditional racked solar system, but it is more affordable when compared to more premium materials like metal, slate, and tiles combined with a conventional solar array.
This was highlighted earlier this year by Tesla owner-enthusiast Ben Sullins, who estimated that a 9.2 kW Solar Roof system will cost about $56,000. And while a standard shingle roof with a 9.2 kW PV system will likely cost just around $42,000, premium roofing materials with solar panels are far more expensive. Sullins estimated that a metal roof with a comparable PV system will cost about $70,000, a tile woof with a 9.2 kW solar system will cost about $111,000, and a slate roof with traditional panels will set back homeowners around $134,000.
With this in mind, and with Tesla’s tendency to keep innovating, there is a good chance that the Solar Roof will get even more affordable in the near future. At an estimated $2.11 per installed watt, after all, the Solar Roof is already a disruptor in its segment, and it is already taking steps to get closer to the costs of conventional roofing materials plus solar panels. Granted, this disruption is yet to become evident as the Solar Roof is only available in some zip codes of 16 US states today, but the following year will likely be exciting for the flagship solar product.
This was highlighted by Elon Musk during Tesla’s Q3 2020 earnings call. When asked about that ramp of the flagship product, Musk noted that the potential of the Solar Roof will be evident in 2021. “I think a future where we’ve got beautiful roofs generating energy that are tough and resilient and better in every way than a regular roof and alive with energy, that’s the future we want. Solar Roof is a killer product. This will become obvious next year,” Musk said.
Solar Oregon’s webinar about solar roof systems could be viewed below.
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.
Energy
Tesla Energy celebrates one decade of sustainability
Tesla Energy has gone far since its early days, and it is now becoming a progressively bigger part of the company.
Tesla Energy recently celebrated its 10th anniversary with a dedicated video showcasing several of its milestones over the past decade.
Tesla Energy has gone far since its early days, and it is now becoming a progressively bigger part of the company.
Tesla Energy Early Days
When Elon Musk launched Tesla Energy in 2015, he noted that the business is a fundamental transformation of how the world works. To start, Tesla Energy offered the Powerwall, a 7 kWh/10 kWh home battery system, and the Powerpack, a grid-capable 100 kWh battery block that is designed for scalability. A few days after the products’ launch, Musk noted that Tesla had received 38,000 reservations for the Powerwall and 2,500 reservations for the Powerpack.
Tesla Energy’s beginnings would herald its quiet growth, with the company later announcing products like the Solar Roof tile, which is yet to be ramped, and the successor to the Powerwall, the 13.5 kWh Powerwall 2. In recent years, Tesla Energy also launched its Powerwall 3 home battery and the massive Megapack, a 3.9 MWh monster of a battery unit that has become the backbone for energy storage systems across the globe.
Key Milestones
As noted by Tesla Energy in its recent video, it has now established facilities that allow the company to manufacture 20,000 units of the Megapack every year, which should help grow the 23 GWh worth of Megapacks that have already been deployed globally.
The Powerwall remains a desirable home battery as well, with more than 850,000 units installed worldwide. These translate to 12 GWh of residential entry storage delivered to date. Just like the Megapack, Tesla is also ramping its production of the Powerwall, allowing the division to grow even more.
Tesla Energy’s Role
While Tesla Energy does not catch as much headlines as the company’s electric vehicle businesses, its contributions to the company’s bottom line have been growing. In the first quarter of 2025 alone, Tesla Energy deployed 10.4 GWh of energy storage products. Powerwall deployments also crossed 1 GWh in one quarter for the first time. As per Tesla in its Q1 2025 Update Letter, the gross margin for the Energy division has improved sequentially as well.
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