Tesla announces third Megafactory as competition heats up [Video]

Elon Musk announced that Tesla is already building a third Megafactory to produce more Megapacks just as the competition in the energy storage space heats up

Energy storage was Tesla’s silver lining this quarter.

While its main business, the automotive business, shrank in both revenue and margins, its energy storage business grew more than 100% year-over-year – having deployed 31.4 GWh versus 14.7 GWh in 2023.

That’s mainly due to its Megapacks, its popular utility-scale energy storage systems, and the production ramp at its Megafactory in California, where it produces those battery packs.

Tesla also recently completed construction at its second Megafactory, this one in Shanghai, China, and now, the company revealed that it is building a third Megafactory.

CEO Elon Musk said during the conference call following the release of its Q4 2024 financial results yesterday:

So, we have our second factory, which is in Shanghai, that’s starting operation, and we’re building a third factory. So, we’re trying to ramp output of the stationary battery storage as quickly as possible.

The CEO didn’t say …