Tesla has started production at its new Megafactory in Shanghai, its second such factory, and it is starting to ship to its first customer.
Energy storage has been Tesla’s silver lining over the last few quarters.
While its main business, the automotive business, has been shrinking in both revenue and margins, its energy storage business has been growing at an impressive pace.
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 has ramped up production at the plant with a capacity of 40 GWh.
The company has also been building its second Megafactory, this one in Shanghai, China.
Today, Tesla announced that it has produced its first Megapack at the Shanghai factory and released these pictures:
Tesla also said that it will soon ship the first Megapacks to Australia from this factory.
Australia has been one of Tesla’s earliest customers of large-scale energy storage systems and it will make more sense to ship Megapacks from China than from the US.
This second Megafactory will help the logistics of Tesla’s energy storage business.
While Tesla’s energy storage volumes are ramping up, the company has had to slash Megapack prices over the last year, which is resulting in lower margins.
The company is also facing stronger competition. Its own battery cell suppliers, BYD and CATL, have released similar products as Megapacks.
FTC: We use income earning auto affiliate links. More.
