Tesla is ramping up hiring at its Megapack factory in Lathrop, California. The automaker and energy company has several engineering positions it’s trying to fill as it focuses on meeting the demand for its utility-scale battery energy storage systems.
In late 2021, Tesla broke ground on its first dedicated facility for Megapack production, which opened in 2022 and is now capable of producing 10,000 Megapack units annually. This translates to sales of over $20 billion per year at the current prices of over $2 million each. This would enable the company to begin seeing substantial growth toward its bottom line from contributions of the energy side of its business if its gross profit per unit is significant.
Gary Black, manager of The Future Fund and Tesla investor in a recent podcast hosted by Farzad Mesbahi pointed out that Tesla could generate $10 billion in revenue this year from its energy side of the business if it produced half of what it’s capable of.
“The sell side is not talking about Megapacks,” he said.
“If Lathrop can even do 5,000 per year, and a lot of it’s based on can they get the batteries needed to produce five or ten thousand units. Five thousand units at $2 million each is $10 billion.”
He added that there’s a lot of debate on the type of gross margin, so he assumed a more conservative 20%. “Even if it’s 20%, that adds incrementally 50 cents to a dollar per share in earnings, and you’re also going to get tax credits as a result of this.”
Although Black’s estimates were conservative, Tesla is seeing high demand for its Megapack batteries. In Q3 2022, Tesla said that its energy storage deployments increased by 62% year-over-year in Q3.
“By far the highest level we have ever achieved,” Tesla said.
Tesla noted that this level of growth was accomplished as the semiconductor challenges were having an impact on its energy business. “Demand for our storage products remains in excess of our ability to supply.”
Those numbers could change tomorrow when Tesla releases its Q4 earnings report. Its hiring ramp at its Lathrop Megapack factory reflects this growth the company is hiring for various engineering positions.
It’s hiring quality engineers for stationary battery manufacturing, battery enclosure manufacturing, and quality systems engineers. Each position has various requirements. For example, the quality systems engineer would identify inefficiencies across the business and be responsible for driving business process design, implementation, and project management of technical solutions.
As demand for Tesla’s Megapacks continues to grow, delivery dates of the units are still expected to be towards the end of 2024.
Disclosure: Johnna is a $TSLA shareholder and believes in Tesla’s mission.
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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.
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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.
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Tesla Megapacks chosen for 548 MWh energy storage project in Japan
