Tesla Says Megapack Battery Systems Nearly Sold Out Through 2027

Tesla Inc. CEO Elon Musk stated that the company's Megapack battery storage systems are nearly sold out through 2027, driven by surging demand for its energy business as the company expands manufacturing capacity.

During an earnings call, Musk noted that energy demand remains very strong and that gross margins on the segment are expected to increase meaningfully. According to the company, Tesla's energy generation and storage division recorded a 33.1% gross margin, up from 20.4% in the previous quarter, while deploying 13.7 gigawatt-hours of energy storage in its second-best quarterly performance.

Production Expansion

To keep pace with the order backlog, Tesla recently began producing Megapack 3 batteries at its Brookshire, Texas, facility, which features a designed annual capacity of 50 gigawatt-hours. The company also operates Megafactories in California and Shanghai to support global demand from utilities, renewable-energy developers, and data centers.

Chief Financial Officer Vaibhav Taneja attributed part of the recent margin improvement to tariff refunds and warranty adjustments involving battery suppliers. Meanwhile, energy revenue fell 16% year over year to $2.88 billion, reflecting fluctuating project deliveries despite the record-high order rate.

Key facts

• Tesla CEO Elon Musk reported Megapacks are nearly sold out through 2027.
• The energy generation and storage division recorded a 33.1% gross margin in the quarter.
• Tesla deployed 13.7 gigawatt-hours of energy storage during the period.
• Energy revenue fell 16% year over year to $2.88 billion.
• Tesla began producing Megapack 3 batteries at its Brookshire, Texas, facility with a 50 gigawatt-hour capacity.