Tesla Powers Up In China: Land Acquired for Megapack Battery Factory Construction In Shanghai

EV giant Tesla Inc (NASDAQ:TSLA) has reportedly acquired land for its Shanghai-based Megapack battery factory and is gearing up for construction.

What Happened: The land acquisition was reported by Bloomberg, citing a company representative.

Tesla announced its plans to open a second Megapack factory in China with a capacity of producing 10,000 megapacks/year in April. The company already has a megapack factory in Lathrop, California.

The construction of the new factory was expected to start in the third quarter with production slated for mid-2024.

Why It Matters: A Megapack is a powerful battery aimed at storing energy and helping stabilize the grid. It is a key component of Tesla’s energy generation business which has seen a surge in growth, with earnings of $1.6 billion in Q3, reflecting a 40% increase.

Each Megapack unit can store over 3 megawatt-hours of energy, enough to power an average of 3,600 homes for an hour, the EV manufacturer says.

Tesla's current plant in Shanghai- Giga Shanghai- manufactures its lower-end vehicles namely the Model Y and 3.

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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