- Tesla began construction of the Shanghai Megafactory on May 23, 2024, its first energy storage project outside of the US.
- The Megafactory will begin capacity ramp-up in the first quarter and is expected to help Tesla improve its supply of energy storage products.
Tesla’s (NASDAQ: TSLA) Megafactory in Shanghai, which produces energy storage products, officially went into production today, with a ceremony taking place in the Lingang new area where the factory is located, according to local media outlet The Paper.
Construction of the factory began in May 2025, and products rolled off the assembly line in just nine months, three months shorter than Giga Shanghai, which produces EVs, once again setting a new “Tesla speed” and “Shanghai speed,” said the report.
The Tesla Shanghai Megafactory will begin capacity ramp-up in the first quarter, according to the report.
This is an important milestone for Tesla, marking the beginning of more Tesla products going from China to the world, an official from the Lingang new area said, cited by The Paper.
The Shanghai municipal government and Lingang will help Tesla create a new glory in the energy storage industry, and will create better conditions to help its energy storage products develop domestic and overseas markets, the official said.
Tesla later shared the development, along with multiple images, on its social media accounts in China.
The US EV maker began construction of the Shanghai Megafactory on May 23, 2024, its first energy storage project outside the United States.
The factory is located in Shanghai Pudong’s Lingang new area, which is also home to Tesla’s EV factory in China that produces the Model 3 and Model Y.
Shanghai Lingang Economic Development Group is the first customer in China for the plant’s product, Megapack, and signed with Tesla about the first orders at a groundbreaking ceremony last May.
On December 31, the state-run Xinhua News Agency reported that the Tesla Megafactory completed construction in seven months and began trial production.
Tesla’s energy storage products include the Powerwall, Powerpack and Megapack. The Shanghai Megafactory mainly produces Megapack, an ultra-large commercial energy storage battery, for the global market.
The Shanghai Megafactory’s Megapack will have an annual production capacity of up to 10,000 units and an energy storage scale of nearly 40 GWh, Tesla previously said.
The Megapack is a powerful battery that stores energy and supplies it, helping to stabilize the grid and prevent power outages. A total of 40 GWh of power is enough to power 50,000 homes in Shanghai for a year.
Tesla had previously said that supply of the Powerwall and Megapack continues to be limited by capacity as new markets are opened up and demand for energy storage products continues to grow, The Paper’s report today noted.
The startup of production at the Megafactory in Shanghai will significantly improve this supply-constraint situation, the paper said.
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