Tesla Inc. TSLA senior executive Grace Tao Lin revealed on Tuesday that the construction of the new Shanghai megafactory dedicated to energy storage products is approximately 45% complete.
Construction Development
What Happened: Tao Lin, who serves as the Vice President of External Affairs at Tesla, also showcased images of the forthcoming factory, including a concept image of the completed facility.
The Tesla Shanghai megafactory marks the company’s inaugural venture dedicated to energy storage product production outside the U.S. Construction officially commenced in May.
Expansion and Plans
Currently, Tesla’s only other factory dedicated to battery manufacturing is situated in Lathrop, California, with a capacity to produce 40 GWh of energy storage products.
Last month, Tesla announced plans to commence production at the new Shanghai factory in the first quarter of 2025.
Tesla also operates another plant in China, Giga Shanghai, which focuses on producing the popular Model 3 sedans and Model Y SUVs.
Significance
Why It Matters: Tesla experienced a remarkable 100% year-on-year surge in revenue from its energy generation and storage segment in the second quarter, amidst a decline in revenue from the automotive segment. The company’s revenue from energy storage products for the second quarter totaled $3 billion, following the deployment of 9.4 GWh of energy storage products.
For the entirety of 2024, Tesla anticipates that the revenue growth rate in its energy sector will surpass that of the automotive business.
During Tesla’s annual shareholder meeting in June, Musk emphasized the company’s progress in energy deployments, targeting a substantial yearly growth in energy storage deployment and stationary packs.
“We seem to be tracking to sort of a 200- to 300-percent year-over-year growth in energy storage deployment and stationary pack. So it’s giant. And the limiting factor really is being able to build more Megapacks and build more Powerwalls (energy storage products),” Musk noted.
Conclusion
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