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Tesla Megapack deployment, profitability reached all-time highs in Q1
Tesla Megapack deployment reached an all-time high in the first quarter of the year, along with the company’s energy business reaching higher profit margins than ever before.
During Tesla’s Q1 2024 earnings call held last Tuesday, CEO Elon Musk noted that Megapack deployments reached an all-time high, while the company reached a record profit margin of 24.6 percent on its energy business. By comparison, automotive margins in Q1 landed at 18.5 percent.
In addition, the company says it expects this trend to continue, as it predicts energy storage deployments overall to increase at least 75 percent from last year. Deployments also reached record highs in Q1, with Tesla deploying 4.1 GWh total energy storage deployments, as driven by Megapack deliveries.
“The Megapack, in particular, reached an all-time high in Q1, leading to record profitability for the energy business, and that looks likely to continue to increase in the quarters and years ahead,” Musk said during the call. “It will increase—we actually know that it will—significantly faster than the car business, as we expected.”
Tesla Megapacks to help grow 560 MW/2,240MWh battery in Australia
The recent statements come as Tesla continues to ramp Megapack production at its first “Megafactory” in Lathrop, California, and as it’s just beginning construction on a second Megafactory in Shanghai, China. Once they reach volume production, both plants are expected to be able to produce 10,000 Megapacks per year.
“Lathrop is ramping as planned. We have our second GA line allowing us to increase our exit rate from 20 GWh per year at the start of this year to 40 GWh per year by the end of the year,” added Mike Snyder, Tesla’s Senior Megapack Director, during the Q1 2024 call.
“There’s really nothing limiting the ramp. Given the longer sales cycles for these large projects, we typically have order visibility 12 to 24 months prior to ship date, so we’re able to plan the build plan several quarters in advance.”
As Tesla stated during its Q4 2023 earnings call, its energy business is expected to outpace its automotive business this year. The company deployed 15 GWh of batteries in 2023, increasing from just 6.5 GWh in 2022, and Musk has also said that Tesla is expecting triple-digit growth in this area.
Musk also noted last year that the energy business was becoming its highest margin business, with energy and service now contributing over half a billion to the company’s quarterly profit.
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
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Armored Tesla Cybertruck “War Machine” debuts at Defense Expo 2025
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Tesla Megapacks chosen for 548 MWh energy storage project in Japan
Tesla plans to supply over 100 Megapack units to support a large stationary storage project in Japan, making it one of the country’s largest energy storage facilities.
Tesla’s Megapack grid-scale batteries have been selected to back an energy storage project in Japan, coming as the latest of the company’s continued deployment of the hardware.
As detailed in a report from Nikkei this week, Tesla plans to supply 142 Megapack units to support a 548 MWh storage project in Japan, set to become one of the country’s largest energy storage facilities. The project is being overseen by financial firm Orix, and it will be located at a facility Maibara in central Japan’s Shiga prefecture, and it aims to come online in early 2027.
The deal is just the latest of several Megapack deployments over the past few years, as the company continues to ramp production of the units. Tesla currently produces the Megapack at a facility in Lathrop, California, though the company also recently completed construction on its second so-called “Megafactory” in Shanghai China and is expected to begin production in the coming weeks.
READ MORE ON TESLA MEGAPACKS: Tesla Megapacks help power battery supplier Panasonic’s Kyoto test site
Tesla’s production of the Megapack has been ramping up at the Lathrop facility since initially opening in 2022, and both this site and the Shanghai Megafactory are aiming to eventually reach a volume production of 10,000 Megapack units per year. The company surpassed its 10,000th Megapack unit produced at Lathrop in November.
During Tesla’s Q4 earnings call last week, CEO Elon Musk also said that the company is looking to construct a third Megafactory, though he did not disclose where.
Last year, Tesla Energy also had record deployments of its Megapack and Powerwall home batteries with a total of 31.4 GWh of energy products deployed for a 114-percent increase from 2023.
Other recently deployed or announced Megapack projects include a massive 600 MW/1,600 MWh facility in Melbourne, a 75 MW/300 MWh energy storage site in Belgium, and a 228 MW/912 MWh storage project in Chile, along with many others still.
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
Tesla highlights the Megapack site replacing Hawaii’s last coal plant
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Elon Musk responds to Ontario canceling $100M Starlink deal amid tariff drama
Ontario Premier Doug Ford said, opens new tab on February 3 that he was “ripping up” his province’s CA$100 million agreement with Starlink in response to the U.S. imposing tariffs on Canadian goods.
Elon Musk company SpaceX is set to lose a $100 million deal with the Canadian province of Ontario following a response to the Trump administration’s decision to apply 25 percent tariffs to the country.
Starlink, a satellite-based internet service launched by the Musk entity SpaceX, will lose a $100 million deal it had with Ontario, Premier Doug Ford announced today.
Starting today and until U.S. tariffs are removed, Ontario is banning American companies from provincial contracts.
Every year, the Ontario government and its agencies spend $30 billion on procurement, alongside our $200 billion plan to build Ontario. U.S.-based businesses will…
— Doug Ford (@fordnation) February 3, 2025
Ford said on X today that Ontario is banning American companies from provincial contracts:
“We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hellbent on destroying our economy. Canada didn’t start this fight with the U.S., but you better believe we’re ready to win it.”
It is a blow to the citizens of the province more than anything, as the Starlink internet constellation has provided people in rural areas across the globe stable and reliable access for several years.
Musk responded in simple terms, stating, “Oh well.”
Oh well https://t.co/1jpMu55T6s
— Elon Musk (@elonmusk) February 3, 2025
It seems Musk is less than enthused about the fact that Starlink is being eliminated from the province, but it does not seem like all that big of a blow either.
As previously mentioned, this impacts citizens more than Starlink itself, which has established itself as a main player in reliable internet access. Starlink has signed several contracts with various airlines and maritime companies.
It is also expanding to new territories across the globe on an almost daily basis.
With Mexico already working to avoid the tariff situation with the United States, it will be interesting to see if Canada does the same.
The two have shared a pleasant relationship, but President Trump is putting his foot down in terms of what comes across the border, which could impact Americans in the short term.
Armored Tesla Cybertruck “War Machine” debuts at Defense Expo 2025
Tesla Megapacks chosen for 548 MWh energy storage project in Japan
