Benzinga - by Nabaparna Bhattacharya, Benzinga Editor.
Tesla, Inc. (NASDAQ:TSLA) has reportedly initiated the construction of a factory in Shanghai on Thursday. The EV behemoth is forging ahead to create its Megapack energy storage batteries.
Tesla’s $200 million Shanghai battery plant in Lingang pilot free trade zone marks its first outside the US, Business Standard reported, citing Chinese state media.
The factory is scheduled to commence mass production in early 2025, boasting an initial capacity of 10,000 Megapack units annually.
CnEV Post said the project received a construction permit from regulatory authorities last week.
Shanghai Lingang Economic Development Group became the first customer for the plant’s product Megapack in China and signed a contract with Tesla for the first order at the ceremony, CnEV Post added.
The report read that Lingang, which houses Tesla’s Chinese EV factory for Model 3 and Model Y, now welcomes the Megafactory adjacent to Tesla’s Shanghai Gigafactory.
Senior VP Tom Zhu highlights its pivotal role in the global energy transition, focusing on Megapack production for worldwide distribution. The factory aims to contribute nearly 40 GWh of energy storage to the market.
Zhu noted that 40 GWh could power 50,000 homes in Shanghai for a year, CnEV Post added.
According to the Tesla website, the Megapack serves as a robust energy storage solution, stabilizing the grid and averting power interruptions by storing and supplying energy as needed.
Price Action: TSLA shares are trading higher by 1.22% to $182.31 premarket at last checked Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Illustration Photo courtesy: Tesla
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