On February 11, the launch ceremony for Tesla's Shanghai Energy Storage Gigafactory was grandly held in Lingang.
Since its official groundbreaking in May 2024, the Tesla Shanghai Energy Storage Gigafactory completed construction in just seven months and was finished by the end of December of the same year. From the start of construction to product rollout, the entire process was three months shorter than the build time of Tesla's Shanghai Gigafactory for automobiles, once again demonstrating the remarkable "Tesla Speed" and "Shanghai Speed."
It is reported that the Tesla Shanghai Energy Storage Gigafactory plans to gradually ramp up production capacity starting this quarter.
According to previously disclosed information, after the factory reaches full production, the annual output of Tesla's large-scale commercial energy storage system, Megapack, will reach 10,000 units, with a total energy storage capacity approaching 40 GWh (gigawatt-hours). This factory is Tesla's first energy storage gigafactory outside the United States and represents another major investment in China following the Shanghai Gigafactory. The commercial energy storage batteries produced here will be supplied to markets worldwide.
The energy storage business has become a key driver of Tesla's revenue growth.
According to Tesla's financial report, in the fourth quarter of 2024, the installed capacity of Powerwall and Megapack both hit record highs, with total energy storage installations reaching 11 GWh, a 244% year-over-year increase. The total installed capacity for the entire year reached 31.35 GWh, marking a 114% year-over-year growth.
Tesla revealed that raw material and other costs at its Lathrop Energy Storage Gigafactory continued to decline in the fourth quarter. With the expansion into new markets and the growing demand for energy storage products, the supply of Powerwall and Megapack remains constrained by production capacity.
Additionally, Tesla's 2024 financial report projects that the company's energy storage product installations will grow by at least 50% year-over-year in 2025.
The production launch of Tesla's Shanghai Energy Storage Gigafactory is expected to significantly alleviate the current supply-demand imbalance.
