Electric vehicle giant Tesla Inc. has announced that its megapack factory in Shanghai has commenced trial production. This development marks a significant milestone for the company, as it prepares to formally start mass production in early 2025.
What Happened
The Tesla Shanghai megafactory is the company’s first factory dedicated to the production of energy storage products outside the United States. Currently, Tesla operates another factory in Lathrop, California, which has the capability of producing 40 GWh of energy storage products. The construction of the Shanghai megafactory began in May, and it has taken only seven months to start trial production.
Key Facts
- Formal mass production is slated to start in Q1 2025.
- The Shanghai megafactory will produce powerful batteries, including the megapack, which can store over 3.9 Megawatt-hours of energy.
- Each megapack unit can power an average of 3,600 homes for an hour.
Why It Matters
The production of megapacks is crucial for Tesla’s energy business, which has shown significant growth in recent years. In the three months through the end of September, Tesla’s energy generation and storage revenue reached $2,376 million, marking a growth of 52% compared to the corresponding period of last year. The energy business achieved a record gross margin of 30.5%, and the Powerwall product achieved record deployments.
Tesla’s Presence in China
Tesla has another factory in China, called Giga Shanghai, which produces the company’s popular Model 3 sedans and Model Y SUVs. The construction of this factory began in January 2019, and it became operational by the end of the year.
Conclusion
The commencement of trial production at the Shanghai megafactory marks an important step for Tesla’s energy business. With the formal start of mass production slated for early 2025, the company is poised to increase its production of energy storage products and further expand its presence in the global energy market.