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Elon Musk’s Tesla Unveils Megapack 3 and Megablock: Faster, Cheaper Energy Storage

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By Vedprakash sahu

Tesla Inc. (NASDAQ: TSLA) has expanded its clean energy portfolio with the launch of the Megapack 3 and the Megablock, next-generation energy storage systems designed for faster installations, lower costs, and greater efficiency.

Megapack 3: Simplified, Cost-Effective Storage

At Tesla’s “Las Megas” event in Las Vegas on Monday, the company showcased the Megapack 3, which features a drastically simplified thermal bay with 78% fewer connections. Production will begin in Houston in late 2026.

Megablock: Scalable Power at Lower Cost

The newly announced Megablock connects more than four Megapack 3 batteries with a megavolt transformer and switchgear. Tesla says it can be installed 23% faster while cutting construction costs by 40%.

High-Performance Energy Storage Specs

  • 248 MWh per acre site density
  • >10,000 cycles with a 25-year lifespan
  • 91% round-trip efficiency at medium voltage

Tesla’s $4.3B LG Deal & Master Plan IV

The announcement follows Tesla’s $4.3 billion supply agreement with LG Energy Solutions, starting in 2027, for LFP batteries to power future storage systems.

Meanwhile, Elon Musk also unveiled Master Plan IV, shifting Tesla’s long-term strategy toward artificial intelligence and humanoid robotics. Musk predicted that the company’s Optimus robots could eventually represent 80% of Tesla’s total value.

Tesla's Dropping Market Share

Despite innovation in energy storage, Tesla’s U.S. EV market share dropped below 40% for the first time in eight years, now standing at 38%. In Europe, sales declined 40.2% year-over-year, underscoring rising competition in the global EV sector.

Tesla maintains strong Momentum, Growth, and Quality metrics, but continues to face concerns over valuation.


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