Tesla’s Megafactory in Shanghai has reached 60% completion just four months into construction, positioning the facility to begin production of the Megapack, Tesla’s utility-scale battery energy storage product, in early 2025.
Situated in the Lingang New Area of Shanghai, the Megafactory is strategically located near Tesla’s existing Gigafactory in the region. This will mark Tesla’s first Megafactory outside North America, with its other facility located in Lathrop, California.
According to Tesla’s latest update, production of Megapacks at the Shanghai facility is anticipated to commence in the first quarter of 2025. Once fully operational, the Megafactory will have an annual production capacity of 40 gigawatt-hours (GWh), matching the output of its California counterpart.
This capacity will enable the production of approximately 10,000 Megapack units annually from Shanghai and an additional 10,000 units from California, addressing the increasing demand for Tesla’s utility-scale energy storage solutions, which currently faces a multi-year waitlist.
Tesla’s Energy division has seen significant growth in recent years, driven by rising demand for energy storage products, particularly the Megapack. In the second quarter of 2024, Tesla achieved a record deployment of 9.4 GWh of battery storage, following a strong first quarter with 4.1 GWh deployed—a 157% increase year-over-year.
These trends align with CEO Elon Musk’s forecasts that Tesla’s energy business could eventually surpass its automotive sector in terms of growth.
