Tesla Energy seems to be well on its way to ending 2023 on a strong note. This was hinted at by a rather large fleet of 337 Megapack batteries that was recently sighted at the Megafactory in Lathrop, California.
The Tesla Megapack is the electric vehicle maker’s flagship battery storage system. Designed specifically for grid use, the Megapack has been deployed in several notable projects around the world. These include a 150 MW/300 MWh Tesla Megapack system in New South Wales, Australia and a 182 MW/730 MWh battery farm in Moss Landing, California.
Tesla currently offers two variants of the Megapack: a 2-hour version that offers 1.9 MW of power and 3.9 MWh of energy and a 4-hour version that offers 1 MW of power and 3.9 MWh of energy. The batteries are priced at $1,908,590 for the four-hour variant with installation and $2,123,590 for the two-hour variant with installation. Without installation fees, the Megapack costs $1,321,390 for the two-hour variant and $1,270,310 for the four-hour variant.
Considering that longtime Tesla watcher Met God in Wilderness was able to spot 337 Megapack batteries at the Lathrop Megafactory during a flyover on November 2, 2023, one could estimate that the battery fleet at the site could be worth about $500 million. Elon Musk hinted as much during the Q3 2023 earnings call when he noted that Tesla Energy was becoming the company’s highest-margin business.
“Regarding energy storage, we deployed 4 GWh of energy storage products in Q3. And as this business grows, the Energy division is becoming our highest-margin business. Energy and service now contribute over half a billion to quarterly profit,” Musk said.
While the Lathrop Megafactory is already producing large numbers of Megapack batteries, the facility is still being ramped by Tesla. As per the electric vehicle maker in its Q3 2023 Update Letter, the company’s energy storage deployments increased by 90% YoY in Q3 to 4.0 GWh, which was Tesla’s highest quarterly deployment ever. The Megafactory is also being ramped towards its full capacity of 40 GWh with its phase two expansion.
Watch the recent drone flyover of the Lathrop Megafactory in the video below.
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