Tesla opens its first energy-storage factory outside the US

In February 2025 Tesla opened its Shanghai Megafactory, the company's first dedicated energy-storage plant outside the United States, and began turning out grid-scale Megapack batteries for global markets. In its first year the factory produced over 2,000 Megapacks while ramping toward an annual capacity on the order of 40 GWh.

Energy storage has quietly become one of Tesla's fastest-growing and highest-margin businesses, and a second source of Megapacks reduces the bottleneck that had constrained how quickly Tesla could deploy grid batteries worldwide. It lets Tesla serve booming demand in Asia-Pacific without shipping every unit from California.

Grid-scale storage is the missing piece that makes intermittent solar and wind behave like dependable, dispatchable power. By industrialising Megapack production on two continents, Tesla is scaling the technology that lets utilities replace fossil "peaker" plants — turning a climate argument into an off-the-shelf product.