Tesla has announced the commencement of trial production at its newly constructed Megapack manufacturing facility in Shanghai, China. The plant represents Tesla’s first Megapack production site outside of the United States and signifies a further expansion of the company’s presence in the Chinese market.
The Shanghai Megapack facility is positioned to serve the growing global demand for energy storage solutions, with a projected annual production capacity of 10,000 Megapack units, or 40 GWh of annual capacity. Tesla has indicated that the Megapack systems manufactured in Shanghai will be supplied to customers worldwide.
Construction of the Shanghai Megapack plant has been rapid, with construction beginning in May 2024. Tesla said it successfully passed its completion inspection on December 27.
The new facility occupies an area of roughly 200,000 square meters and represents an investment of approximately 1.45 billion yuan (US$201.7 million), as reported by the Lin-gang Special Area administration.
Tesla’s energy storage business has been a bright spot in the company’s financial performance. In the third quarter of 2024, Tesla reported $2.376 billion in revenue from its energy generation and storage segment, representing a year-on-year increase of 52.4 percent. Furthermore, the gross profit margin for the energy storage business reached 30.5 percent, a record high for the company.
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