Megapack Production over 10K
During New Years, many of us like to look back at our accomplishments, and Tesla is no different.
On December 29th, the company’s Twitter posted a list of milestones they hit in 2022.
One of the more impressive numbers on that list is the mention of their Megafactory in Lathrop, California - the facility where Tesla manufactures their Megapack energy storage systems.
According to the thread, Tesla is reporting that the facility is capable of producing 10 thousand Megapack units per year, which matches up with earlier reports about the company’s goals for the factory back in November.
The increase in production is definitely due to the new facility. Previously, Megapacks were being made in the GigaNevada facility, and the output was reportedly somewhere around 2100 units per year.
But the demand for Tesla’s Megapack units has risen sharply over the last couple of years, with facilities opening up in California, Canada, Australia, Hawaii, Slovenia, Belgium, England… so many countries, states and towns are starting to use the Megapack to bolster their power grids.
Or just replace older infrastructure entirely. Hawaii used their Megapacks to finally kick coal power. A small town in Belgium recently replaced a generator from WW2 with a small Megapack facility to stabilise peak or emergency grid loads.
And this explosion of customers seems to have caught Tesla by surprise a bit. In December it was reported that Tesla had listed the earliest estimated delivery date for new Megapack orders in late 2024.
This is a good sign that Tesla will likely need every unit of its new 10k capacity. Which is very good news, as each unit is over 2 million USD each, which could translate to over 20 billion in new revenue if they manage to fill all those orders.
CEO Elon Musk has mentioned before that there is an “essentially quasi-infinite demand for energy storage” and that Tesla’s energy services could end up being more profitable than even their vehicle fleet.
And that’s probably down to the fact that the world is in desperate need of solutions to both replacing ageing energy infrastructure, and replacing polluting sources with greener ones.
Whatever the reasons for Megapacks flying off the shelves, it translates to a lot of money for Tesla. Not a bad start to 2023.