Tesla's First Megafactory Outside US To Start Production On Feb 11: Report

EV giant Tesla Inc. (NASDAQ:TSLA) will reportedly start production at its Shanghai megafactory on Feb. 11, less than a year after starting construction.

What Happened: According to a report from local media outlet Shanghai Securities News, the megafactory in Shanghai, Tesla’s second globally, will start production on Feb. 11 and ramp up capacity in the first quarter.

Tesla did not immediately respond to Benzinga’s request for confirmation on the report.

The Shanghai megafactory is the company's first factory dedicated to the production of energy storage products outside the U.S. Currently, Tesla has only one other factory dedicated to manufacturing megapacks, located in Lathrop, California. The Lathrop facility has the capability of producing 40 GWh of energy storage products.

Tesla officially began the construction of the Shanghai megafactory in May, taking only seven months from the start of construction to starting trial production in December.

Megapack is a powerful battery manufactured by the company in addition to its home battery called Powerwall. Each megapack unit can store over 3.9 Megawatt-hours of energy or enough to power an average of 3,600 homes for an hour.

Why It Matters: Tesla reported revenue of over $3 billion from its energy generation and storage segment in the fourth quarter or more than double the $1.44 billion reported in the corresponding quarter of 2023, upon deploying a record 11.0 GWh of energy storage products.

Revenue from the energy segment accounted for about 12% of the company's total revenue in the quarter, while the automotive segment accounted for 77%. The company reported quarterly total revenue of $25.71 billion, missing a street consensus estimate of $27.26 billion.

Tesla continues to be hopeful for its energy segment for it said late last month that it expects energy storage deployment to grow at least 50% year-over-year in 2025. Both the powerwall and megapack continue to be supply-constrained as it opens to new markets, the company added.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Read Next:

• Tesla Launches Limited-Time Car Insurance Subsidy for Model 3 In China, Researcher Expects It To Have ‘Limited Impact’ On EV Maker’s Delivery Hardships In Q1

Photo courtesy: Shutterstock