TSLA
The battery business is no longer the side quest
Tesla has started building Megapack 3 batteries at its new Brookshire, Texas Megafactory, and that matters more than your average ribbon-cutting. This isn’t just another factory—it’s Tesla pushing harder into the part of the business that’s been growing faster than its cars.
Why investors should care
The company designed the site to eventually crank out 50 gigawatt-hours of Megapack 3 capacity a year. That’s a big deal at a moment when utilities, renewable developers, and data centers are all scrambling for grid batteries like they’re the last charger at the airport.
And here’s the spicy part: Tesla’s energy segment is quietly looking more attractive than the core auto business.
- Tesla deployed 13.5 GWh of storage products in Q2, up about 41% from a year earlier
- Vehicle deliveries rose about 25% in the same stretch
- Energy generation and storage revenue hit $3.14 billion in the quarter
- Energy gross margin came in at 20.4%, above automotive’s 16.9%
Texas, meet the battery boom
The Brookshire plant gives Tesla a front-row seat in one of the biggest battery buildouts in the U.S. Texas is expected to account for a huge chunk of the nation’s new utility-scale storage this year, so Tesla is planting a flag right where the demand is.
That’s the strategic shift here: while the car business deals with pricing pressure and bigger spending on AI, robotaxis, and robotics, Megapack is starting to look like the part of Tesla that could do the heavy lifting.
Big picture: Tesla still sells cars, sure. But this update says the company increasingly wants you to think of it as an energy infrastructure player too—and Wall Street may have to update the mental spreadsheet.