Tesla’s Megapack is rapidly becoming a key component in energy storage and grid modernization efforts worldwide. Though often associated with powering AI infrastructure or industrial operations, Megapack’s true strength lies in its ability to stabilize electrical grids during blackouts and brownouts.
In a recent behind-the-scenes reveal, Tesla showcased the impressive scale of Megapack production at its Mega Lathrop facility, along with real-world examples of how these systems are already transforming energy resilience across the globe.
Mega-Scale Megapack
Tesla is operating the largest utility-scale battery manufacturing facility in North America at Mega Lathrop, which has the capacity to produce 10,000 Megapacks annually. Thanks to a highly automated assembly process that uses over 30 welding robots to assemble the core Megapack structure. This is the largest manufacturing fixture Tesla uses— likely to only be matched by future developments at Mega Shanghai.
Tesla uses a highly automated powder coating process, utilizing over 90 robotic paint atomizers to apply more than 140 pounds of powder coat to each Megapack. This process delivers Tesla’s signature white reflective finish, engineered for long-term durability and corrosion resistance that lasts up to 20 years, even in harsh coastal or high-heat environments.
All of Megapack’s power electronics are designed and built in-house. Each Megapack uses 24 battery modules, electrical busing, and thermal management systems to ensure grid reliability and help to maximize energy density. The architecture pairs each inverter with a battery module to maximize energy availability and overall uptime. Plus, before each Megapack ships its way across the world, Tesla performs rigorous on-site quality control to ensure that the installation process is as seamless as possible.
Watch Tesla’s video of the manufacturing process below:
Megapack’s Real-World Impact: Hawaii
The core purpose of Megapack is to make power grids more stable and resilient while also reducing reliance on dirty peak power plants like coal. They achieve this by balancing energy supply and demand in real-time, smoothing out fluctuations from variable renewable sources like solar and wind, which helps to prevent grid shortages.
Hawaii actually provides the most real and down-to-earth example of Megapack’s impact. In mid-2024, the Kapolei Energy Storage facility in Hawaii came online. Hawaii utilized 258 Megapacks with a combined capacity of 565 MWh, successfully replacing the state’s last coal-fired power plant. This single facility can power approximately 20% of Oahu’s peak electricity needs by itself for approximately 4 hours.
The project is more than just removing coal plants, though. It serves as an example of Megapack’s grid integration and grid forming technology. The Kapolei Energy Storage facility can manage grid fluctuations caused by weather changes impacting renewable energy, improving stability and preventing blackouts. Thanks to their rapid inverter response times of under a millisecond, Megapacks participate in complex grid balancing activities, including fast frequency and voltage support, which helps to maintain grid balance throughout the day. Beyond that, Kapolei also allows Hawaii to black-start the grid in case of a major power outage that takes out a large section of the grid.
This functionality would be especially useful in Spain, where black-starting the grid took over eight hours recently and is still disrupting the day-to-day life of people there.
You can check out Megapack’s real-world impact in this video from Tesla below:
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Ashok Elluswamy, Tesla's Vice President of Autopilot and AI Software, recently discussed Tesla's artificial intelligence programs' current state and future ambitions. He covered FSD and then extended it to the broader topics of robotics and Artificial General Intelligence (AGI).
Journey to Truly Autonomous Driving
At the core of Tesla’s AI efforts lies the quest for fully autonomous vehicles. Ashok reiterated the long-term vision where, eventually, all newly manufactured cars are expected to be self-driving, with older, human-driven cars potentially becoming items for specialized hobbies or unique purposes.
However, he did acknowledge that the current advanced driver assistance systems (ADAS), including Tesla’s own FSD, require better reliability before the human can be completely removed from the equation.
The development process, he emphasized, is fundamentally rooted in machine learning rather than traditional programming. A crucial aspect of this is that AI is consistent across every vehicle, learning collectively from the fleet’s experiences rather than being unique to each car.
Progress in AI is continuous.
Safety and reliability remain Tesla’s focus for FSD. Now, with Tesla just weeks away from launching its Robotaxi Network in Austin, Texas, this is more true than ever, as any accidents could cause a delay in the program’s expansion or stop the program entirely.
No LiDAR
Ashok confirmed that Tesla still has no interest in LiDAR while discussing Tesla's vision-based sensor suite. He reiterated that cost and scalability remain key concerns with LiDAR, adding that its perceived usefulness diminishes as vision-based systems continue to improve.
Beyond the Road: FSD and Robotics
Ashok described Tesla’s AI network poetically - a “digital living being.” This emphasizes the organic way FSD absorbs information from the environment and learns from it. But FSD isn’t just for cars. Tesla uses FSD, as well as the same AI4 hardware from its vehicles, for its humanoid robot, Optimus.
Ashok expects that there will be a tremendous wave in robotics over the next 10 to 20 years. A key part of this will be the development of humanoid robots, which he believes will eventually be capable of complex industrial and domestic tasks, interacting with natural language, likely by 2035.
This recent surge in AI capabilities has been heavily driven by advancements in deep learning and the availability of massive computing power. Tesla is making heavy investments in both software and hardware. It recently started construction of its Cortex 2.0 Supercomputer cluster at Giga Texas.
Envisioning Sustainable Abundance & AGI
The conversation also covered the topics of Artificial General Intelligence. Ashok offered a pretty bold prediction that AGI will arrive in as little as the next 10 years, based on the rate of advancement that he’s seen so far. He further projected that AI-based software could become capable of performing most human tasks, whether spreadsheets or even robotic athletics, within the next 15 years.
This technological leap, he believes, ties into Tesla’s newer mission statement of sustainable abundance. Sustainable abundance is where the combination of intelligent machines and effective robotics helps to move greater portions of society away from poverty. This has become Tesla’s guiding philosophy since the 2025 All-Hands Meeting earlier this year.
Sustainable abundance should be a win-win scenario for all involved, helping reshape both production and creative industries to help humans do what they want to do rather than what they have to do.
Future of Mobility
As FSD and other AGI tech mature, Ashok believes that all cars being manufactured by 2035 will become autonomous. By then, the very concept of car ownership may change and transform. Owning a car would be a more “premium experience,” as the convenience and efficiency of self-driving vehicles might make personal ownership less of a necessity for many people. This shift would also necessitate infrastructure improvements to accommodate potentially increased vehicle usage.
We took a look at what the future may look like when autonomous vehicles become commonplace. It’ll have a drastic effect on our society, as parking lots will need to be a fraction of the size they are today, drop-off and loading zones will need to be bigger, and, for the most part, road signs may no longer be needed.
Will need this big time in the future. With autonomous vehicles we'll have affordable premium transport for everyone. This will likely increase traffic due to the increased usage, even though each vehicle is much more efficiently utilized. https://t.co/xvdvmxmzxd
Touching on the Indian vehicle market, Ashok noted that EVs, especially when combined with technologies like FSD, are well suited to the typical travel patterns in India and could make a big difference. With Tesla putting its eyes on a potential factory expansion in the coming years in India, there’s a lot riding on Tesla being able to take on the challenge of Indian roadways, where traffic laws are not enforced and well known.
Ashok’s interview was a fantastic look into what he believes will be next for Tesla - and he left with some parting advice for the next generation of engineers.
Master core concepts and leverage the wealth of online resources available. There is an emphasis on talent and innovation over traditional corporate hierarchies, and don’t forget your priorities: work and family.
You can watch the full interview here. Closed captioning is available.
This morning, Tesla announced the appointment of Jack Hartung, President and former Chief Financial Officer of Chipotle Mexican Grill, to its Board of Directors. Jack will join the board on June 1st of this year and will also serve on Tesla’s Audit Committee.
Hartung brings over two decades of financial leadership experience to Tesla’s board. During his tenure at Chipotle, he held several leadership positions, including President and Chief Strategy Officer, as well as Chief Financial and Administrative Officer. Under his financial stewardship, Chipotle expanded immensely, now operating over 3,700 restaurants worldwide.
In addition to his new role at Tesla, Hartung serves on the Boards of Portillo’s Inc., The Honest Company, Inc., and ZocDoc, Inc.
Interestingly, Hartung has opted to forgo any cash or equity compensation for his role on Tesla’s board.
Tesla’s board now comprises nine members, including Chair Robyn Denholm, CEO Elon Musk, his brother Kimbal Musk, and Airbnb co-founder Joe Gebbia.
Areas of Interest
Hartung joins Tesla as it works through regulatory challenges in Europe around FSD, although it seems like Europe will finally see FSD introduced this September, at least on the highway.
Given Jack’s experience in the food sector, it’ll also be interesting to see whether he offers input on Tesla’s upcoming drive-in diner and whether the company expands the concept beyond a one-off Supercharger. We recently shared exclusive photos of the interior of the project, which appears to be in the final stages of construction.
Hartung’s experience in scaling operations may also be crucial during Tesla’s expansion of the Robotaxi network when it begins expanding outside of Austin, Texas.