Tesla's Shanghai Megafactory doubles Megapack output in 2025

Tesla's Shanghai Megafactory has achieved a significant milestone by producing over 2,000 Megapack energy storage systems in its first full year of operation. The facility, which began production in early 2025, doubled its output in the final five months of the year. This ramp-up underscores Tesla Energy's expanding role in global energy storage.

The Shanghai Megafactory, situated in the Lin-gang Special Area of the China (Shanghai) Pilot Free Trade Zone, marked its debut as Tesla's first dedicated energy storage factory outside the United States. Following the Shanghai Gigafactory for vehicles, this site focuses on Megapacks, large-scale battery units designed to enhance grid stability and integrate renewable energy sources. Each Megapack holds about 4 MWh of electricity, making them vital for utility-scale applications.

Production started steadily in early 2025, with the factory reaching 1,000 units by late July—achieved in under six months. The pace accelerated thereafter, adding another 1,000 Megapacks over the remaining five months, averaging around 200 units monthly. This controlled growth allowed Tesla to optimize operations, staffing, and supply chains. Most of the output has been exported, mainly to Europe and Australia, key markets for Tesla's energy solutions.

At full capacity, the factory aims to manufacture up to 10,000 Megapacks per year, providing roughly 40 GWh of storage. This development bolsters Tesla's worldwide network, complementing the California Megafactory, which hit its 10,000th unit in late 2024, and a new site under construction in Texas. As demand for large-scale batteries rises amid the shift to renewables, Shanghai's contributions highlight Tesla Energy's strategic push into international production.

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Artist's rendering of Tesla's new 50 GWh Megapack factory near Houston, highlighting battery production amid renewable energy infrastructure.
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Tesla Announces Third Megapack Factory Near Houston for Late 2026

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Tesla is expanding its energy storage operations with a third Megapack factory set to open near Houston in late 2026. The facility will produce the new Megapack 3/Megablock product at an annual capacity of 50 GWh, underscoring the company's focus on AI-driven grid solutions amid surging renewable energy demands.

Tesla is planning its biggest-ever battery storage megafactory in Shanghai, China, to bolster grid-scale energy solutions. The facility will focus on producing Megapack units to support renewable energy integration and urban power stability. This move aligns with China's aggressive targets for renewables and peak-shaving requirements.

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Tesla reported a record 14.2 GWh of energy storage deployments in the fourth quarter of 2025, up 29% from the previous year, even as its electric vehicle deliveries fell 16%. The company's energy business, including Powerwall and Megapack products, continues to show strong growth and profit margins. CEO Elon Musk highlighted the long-term potential of energy storage and solar integration.

Tesla has secured a $170 million order to supply 168 Megapack units for a 150 MW/600 MWh battery energy storage system at TagEnergy's Golden Plains Wind Farm in Victoria, Australia. The project will pair the southern hemisphere's largest wind farm with onsite storage to enhance grid reliability. Construction is set to begin early next year, with completion expected in mid-2027.

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Tesla reported its first annual revenue decline in 2025, down 3% to $94.8 billion amid EV weakness, but its energy storage business hit a record 46.7 GWh deployments, driving 26.6% revenue growth to $12.8 billion with 29.8% margins. The segment's success highlighted a strategic pivot to AI, robotics, and energy, though 2026 faces margin pressures from competition and policy shifts. Shares rose 3% after hours.

Tesla shared a second video on January 4, 2026, demonstrating its Semi truck reaching a 1.2 MW peak charging rate, with engineers cheering the milestone. This follows the December 31 demo and reinforces the truck's fast-charging potential ahead of 2026 production.

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Following the recently announced three-year framework agreement with SPIE for Megapack deployments across Europe (see prior coverage), Tesla is advancing its grid storage ambitions. This partnership supports network stability and renewable integration, helping diversify from EVs amid market pressures.

 

 

 

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