Tesla's Shanghai Megafactory (energy storage super factory) is about to be completed and will prepare to start producing Megapacks in the first quarter of 2025. At least the recent updates shared on social media suggest this.
Tesla, which specializes in tracking Tesla news, reported that according to the latest update, Tesla's Megafactory in Shanghai will be completed ahead of schedule until December 2024. It seems that Tesla is determined to replicate the speed of the Shanghai Gigafactory Gigafactory, which started construction, started production, and delivered in the same year.
Approaching completion
Although Tesla occasionally provides the latest news about the Shanghai Megafactory, there are few actual videos about the construction of the factory. Part of the reason is that Tesla China has restricted the airspace around and near the Shanghai Megafactory. Therefore, although the completion of Shanghai Megafactory in 2024 is a high probability event, empirical pictures of the project are rare to find online.
Until recently, Tesla retail investor @ WR4NYGov shared some photos taken near the Shanghai Gigafactory on social media, with the source choosing to remain anonymous. From the photo, it can be seen that the Shanghai Gigafactory seems to have been completed, and it looks certain that it will start producing Megapack batteries in the first quarter of 2025.
Another Tesla investor @ Tslachan shared a video showing that Tesla's Shanghai Megafactory is about to be completed.
From the video, it is evident that the factory has entered the completion phase.
Similar to Tesla's Lathrop Gigafactory in the United States, the Shanghai Megafactory aims to produce Megapack batteries. Tesla CEO Elon Musk announced during the Q3 2024 earnings conference call that Shanghai Megapack will begin operations in the first quarter of 2025 with an initial annual production capacity of 20GWh.
The Shanghai Megafactory is expected to help Tesla Energy grow to a historic high. During the conference call, Elon Musk pointed out that Tesla will soon begin shipping 100 GWh of fixed energy storage annually. The Shanghai Gigafactory and other facilities are expected to play a key role in Tesla's efforts to develop its energy business.
Soon, we will be delivering 100 GWh of fixed energy storage at Tesla every year. And, I believe, it will eventually grow to several TWh per year. In order to have a sustainable energy future, this must truly be achieved. If you don't reach the terawatt level, you can't really drive development, "Musk said.
China Speed
The energy storage super factory will be used to produce Megapack large-scale energy storage products. According to Tesla's description, Megapack is a large commercial battery pack that can store over 3 megawatt hours (MW) of energy per unit, providing external energy to meet the 1-hour electricity needs of approximately 3600 households.
Megapack is mainly used for public utilities and large-scale industrial/commercial scenarios, capable of storing clean energy electricity such as wind and solar power. It can also be connected to the current power grids of various countries' markets, and the charging and discharging power can be changed at any time according to the situation, which helps stabilize the power grid and prevent power outages.
In May 2024, Tesla officially started construction of the Megafactory in the Shanghai Lingang Free Trade Zone. In just a few months, the construction progress has rapidly advanced, and by the end of September, the main building had been completed by over 60%. This efficient construction speed not only reflects Tesla's execution ability, but also China's huge advantage in infrastructure construction.
The new factory is designed to have an annual production capacity of 10000 units and 40GW of energy storage products. Once put into production, the Shanghai Megafactory will become Tesla's first Megapack production base outside the United States, doubling the company's Megapack capacity and supporting global market demand together with its factory in Lathrop, California.
The rapid growth of Tesla's energy business has been clearly reflected in recent financial reports. In the third quarter of 2024, Tesla's energy division's gross profit margin reached a new high of 30.5%. The production of Shanghai Megafactory is expected to further enhance Tesla's competitiveness in the global energy storage market and provide strong support for the development of renewable energy worldwide.