Tesla's new Megafactory in Shanghai, dedicated to manufacturing its grid-connectable stationary batteries known as Megapacks, launched production on Tuesday, marking a significant expansion of the U.S.-based clean energy company's presence in China.
With an initial annual production capacity of 10,000 units, or roughly 40 gigawatt-hours of energy storage, the Megafactory is set to significantly contribute to Tesla's goal of reshaping global energy storage for power grids. The company anticipates a year-on-year increase of 50 percent in energy storage deployments in 2025.
Covering an area of approximately 200,000 square meters, the new Shanghai plant represents a total investment of about 1.45 billion yuan (around 202 million U.S. dollars), according to the administrative body that oversees the Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone, where this Tesla facility is located.
Notably, mass production at the factory commenced just eight months after construction began, serving as a new example of Tesla's speedy expansion in China.
The Megafactory is also the first of its kind built by Tesla outside the United States.
According to the company's 2024 financial report, the annual installed capacity of its energy-storage batteries globally reached 31.4 gigawatt-hours, up 113 percent year on year.
The installed capacity for Tesla-deployed energy storage systems is expected to grow at least 50 percent year on year as the Megapacks produced in Shanghai are put into use.
Tesla launches energy-storage battery production at Shanghai Megafactory
U.S. President Donald Trump said on Sunday that a deal with Iran to end the war has not been "fully negotiated yet," lashing out at critics of the planned deal.
"Our deal is the exact opposite, but nobody has seen it, or knows what it is. It isn’t even fully negotiated yet," Trump said in a post on his Truth Social.
"So don't listen to the losers, who are critical about something they know nothing about. Unlike those before me who should have solved this problem many years ago, I don't make bad deals!" he wrote.
"If I make a deal with Iran, it will be a good and proper one," he said in the post.
Earlier on Sunday, Trump said he has told his "representatives not to rush into a deal" with Iran because "time is on our side."
"Both sides must take their time and get it right," Trump wrote on Truth Social, noting that the U.S. blockade on Iranian ports "will remain in full force and effect until an agreement is reached, certified, and signed."
U.S. Secretary of State Marco Rubio said on the same day that the draft peace agreement has garnered support from several countries in the Middle East, saying the U.S. is prepared to move forward.
The White House believes it could take several days for Iran's leadership to approve the deal, according to a report from U.S. media outlet Axios on Sunday.
While U.S. officials are optimistic that a deal will be signed within days, they also acknowledge it has not been finalized and could still fall apart, said the report, citing a senior U.S. official.
It is unclear whether the potential deal will lead to a lasting peace agreement that also addresses U.S. nuclear demands.
Iran has not made any commitments regarding the details of the nuclear issue at this stage of talks with the U.S.
According to the semi-official Iranian news agency Tasnim, Iran has rejected claims in Israeli media reports said the country will receive no relief on frozen assets until it begins transferring its enriched uranium stockpiles. The Tasnim report said Iran refuses to link the release of frozen assets with the nuclear materials issues.
Iran said that part of its frozen assets must be released immediately upon any possible announcement of a mutual understanding, and must be fully accessible to Iran, the report said.
If the assets cannot be unfrozen, one of Iran's red lines will have been crossed, and there will be no mutual understanding, the report said.
Trump says deal with Iran has not been "fully negotiated yet"
