Electric vehicle giant Tesla Inc. is set to start production at its Shanghai megafactory on February 11, marking a significant milestone in the company’s expansion plans. This development comes less than a year after the construction of the megafactory began.
What Happened
The Shanghai megafactory, Tesla’s second globally, will commence production on February 11 and is expected to ramp up capacity in the first quarter. This information was reported by local media outlet Shanghai Securities News. Although Tesla has not confirmed the report, the news has generated significant interest in the industry.
The Shanghai Megafactory
The Shanghai megafactory is Tesla’s first factory dedicated to the production of energy storage products outside the United States. Currently, the company has only one other factory dedicated to manufacturing megapacks, located in Lathrop, California. The Lathrop facility has the capability of producing 40 GWh of energy storage products.
Construction and Production Timeline
Tesla officially began constructing the Shanghai megafactory in May and started trial production in December, just seven months after breaking ground. This rapid development is a testament to the company’s commitment to expanding its energy storage capabilities.
Megapack: A Powerful Battery
Megapack is a powerful battery manufactured by Tesla, in addition to its home battery called Powerwall. Each megapack unit can store over 3.9 Megawatt-hours of energy, which is enough to power an average of 3,600 homes for an hour.
Why It Matters
Tesla’s energy generation and storage segment reported revenue of over $3 billion in the fourth quarter, more than double the $1.44 billion reported in the corresponding quarter of 2023. The company deployed a record 11.0 GWh of energy storage products during this period. Revenue from the energy segment accounted for about 12% of the company’s total revenue in the quarter, while the automotive segment accounted for 77%.
Future Plans
Tesla continues to be hopeful for its energy segment, expecting energy storage deployment to grow at least 50% year-over-year in 2025. Both the Powerwall and Megapack continue to be supply-constrained as the company opens up to new markets. With the Shanghai megafactory set to commence production, Tesla is poised to increase its energy storage capabilities and meet the growing demand for its products.