Tesla is originally known for its electric vehicle business. However, CEO Elon Musk has previously announced aspirations for Tesla Energy to surpass the growth of its EV division.
That said, the company has made significant moves to expand its solar and energy business. Last month, it started Tesla Megapack production at its newest Lathrop Megafactory in California. Now, Teslarati reports that it has already reached an annual production capacity of 10k Megapacks.
Tesla celebrates 10,000 Megapacks production rate per year
Remarkably, it took Tesla just around a year to commission the Lathrop Megafactory and begin production after the groundbreaking ceremony in September 2021. Now, it has been announced that the Megafactory has achieved a production rate of 10,000 Megapack units annually.
Tesla’s solar and energy business’ potential
Lathrop Megafactory’s annual production capacity of 10,000 Megapacks can generate more than $20 billion in sales.
Tesla might see its energy business’ contributions to its bottom line expand significantly in the upcoming years, considering that Tesla’s gross profit per Megapack is sizable.
“Demand for our storage products remains in excess of our ability to supply. We are in the process of ramping production at our dedicated 40 GWh Megapack factory in Lathrop, California, to address the growing demand.”
Tesla Q3 2022 Update Letter
That is not surprising, as there is certainly a massive demand for energy storage, especially now that many countries have started to acknowledge the limitations of the grid.
“There are going to need to be a lot of gigafactories, if not from Tesla, then from someone else. There’s essentially quasi-infinite demand for energy storage, if the energy density and the price are good enough.”
Tesla CEO Elon Musk
Tesla is certainly at the forefront of the movement toward sustainable technologies and transportation. Its Megapack batteries are essential for the company to achieve its vision of a sustainable energy future. In fact, Elon Musk has already emphasized numerous times that Tesla Energy has the potential to surpass the company’s EV business.
