Energy
The business that grew 27% while cars shrank: Megapack 3, Megablock and three Megafactories.
Megapack 3 and Megablock
Unveiled September 8, 2025: Megapack 3 stores about 5 MWh (up from 3.9) using larger LFP cells with 78% fewer thermal connections, and Megablock bundles four of them with a transformer and switchgear into a ~20 MWh unit that installs 23% faster, packs 248 MWh per acre and lets a gigawatt-hour be deployed in 20 business days. Electrek
The first Megapack 3 came off the line at the new Brookshire, Texas Megafactory on August 6, 2026 — 16 months from groundbreaking, designed for 50 GWh a year. Lathrop, California produces ~40 GWh and the Shanghai Megafactory has run since early 2025. Q3 2026 saw the first Megapack deliveries with Tesla's in-house LFP cells, and Musk says 2027 Megapack output is “almost sold out.”
The numbers
Storage deployments: 31.4 GWh in 2024, 46.7 GWh in 2025, and 8.8 / 13.5 / 13.7 GWh in the first three quarters of 2026 (Q3 missed a ~15.9 GWh consensus). Energy revenue was $12.8B in 2025 and $2.88B in Q3 2026 (−16% YoY) at a 33% gross margin helped by tariff refunds. Notable 2026 deals: a 25 GWh framework with NatPower in Italy and the UK and 1.4 GWh for Mufasa in the Netherlands. Related-party sales in 2025 included ~$430M to xAI, mostly Megapacks for Colossus. Q3 results