Elon Musk is looking to increase the company's solar and battery business as car sales dip.
Elon Musk's Tesla Inc. has unveiled plans to build a new factory to build its Megapacks, a large-scale lithium-ion battery storage solution in Shanghai, a
report said. The output capacity of this plant will be roughly 10,000 Megapacks a year, equivalent to that of its Lathrop, California facility in the U.S.are container-sized lithium-ion battery packs that can store up to 3.9 Megawatt-hours . The large capacity packs are intended for use by utility companies as they look for solutions to store energy generated from renewable sources like solar and wind energy. Megapacks connected to the grid can supply additional power during peak demand.
The upcoming plant's production capacity is estimated to be 10,000 Megapacks a year, similar to what the company produces at its Lathrop Megafactory facility in California every year. However, having changed its headquarters to Texas, Tesla is looking to tap into China's battery supply chain to reduce its costs and increase the output of its battery pack business, as more countries shift to renewable energy sources.Tesla's major source of revenue is its electric vehicle business.
is being tuned up to produce a million vehicles a year. Estimates suggest that a third of cars sold by Tesla globally last year came from the Shanghai production facility, which was set up only in 2018.However, a slowdown in demand for electric vehicles amidst rising inflation has meant that Tesla is now dealing with an increase in unsold inventory of its cars, risking its revenues.
Whether renewable energy storage solutions now help revive Tesla's potentially sagging fortunes, remains to be seen.
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