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Hey everybody. 
Welcome back to the Elon Musk 

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Podcast. 
This is a show where we discuss 

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the critical crossroads, the 
Shape, SpaceX, Tesla X, The 

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Boring Company, and Neurolink. 
I'm your host, Will Walden. 

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Hello, hello, hello, everyone. 
Thank you all for being here. 

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It's great to see a lot of 
familiar faces out there. 

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For those joining us online, 
we're here in the Boring Company

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Tunnel for our latest product 
unveil and right on brand of 

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this, this event is powered by 
Megapacks and Cyber truck. 

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All right, let's get started. 
At Tesla, we are building a 

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world filled with sustainable 
abundance powered by sustainable

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energy. 
And tonight we are launching the

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next chapter in that vision. 
We are an engineering centric 

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and engineering LED company and 
we believe that electric 

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vehicles, charging, storage and 
solar and autonomy, they are not

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separate tools, but they are one
of they are part of 1 seamless 

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solution set. 
We are leveraging our 

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manufacturing expertise. 
We are leveraging our 

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manufacturing expertise to 
produce products affordably and 

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at scale, increasing the 
reliability, increasing the 

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reliability of clean energy and 
transportation in our 

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communities. 
Tesla offers hardware, software,

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controls and service all under 
one roof. 

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We have engineers across the 
full spectrum of product 

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development, energy projects and
manufacturing. 

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It's really what allows us to 
innovate and iterate quickly to 

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produce the best products in the
world. 

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Now in 2023, we introduced 
Master Plan Part 3 and we 

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outlined how the entire Earth 
could be run off sustainable 

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energies using technologies we 
have today. 

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In order to eliminate fuels, we 
need eliminate fossil fuels. 

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We need to power the grid within
renewables, but to do that, that

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requires massive batteries. 
In order to achieve a fully 

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sustainable economy, we 
calculated that the world needed

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46 terawatt hours or 46,000 GW 
hours of storage. 

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Now we know, we know not all of 
that is going to be a mega pack,

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but we are excited to continue 
being a leader in the space and 

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transforming the grid to a 
sustainable future. 

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But this transformation is not 
just about renewables. 

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Global electricity demand is 
projected to increase by 3% 

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annually, driven by 
electrification, manufacturing, 

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and data centers. 
AI data centers alone is 

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projected to make up to 10% of 
the US energy demand by 20-30. 

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This rate of load growth hasn't 
been seen in the US since the 

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early 2000s. 
Load is rapidly growing and to 

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be honest, the grid is not 
growing fast enough to keep up. 

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What's interesting to note is 
that the grid is traditionally 

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built to handle the highest 
demand moments, but for most of 

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the day or even most of the 
year, it is far below capacity. 

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It operates far below capacity. 
Some estimates state that the 

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grid is about 50% utilized here 
in the US and said another way, 

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50% of the grid infrastructure 
sits idle and unused most of the

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year. 
Batteries are are an ideal 

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solution to help the grid 
utilize more of its own supply. 

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Let's just look at this example.
So it's this is an example load 

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over the course of seven days 
and you can see the grid 

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capacity in the dash red line 
and obviously it is greater than

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the load which it should be. 
Now let's add in a new data 

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center load which just shifts 
our entire load up with the peak

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now exceeding the the grid 
capacity. 

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So traditionally this peak wood 
forest the grid to install more 

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infrastructure generation 
transmission substations just to

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serve that new peak. 
It would raise the entire dashed

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line, but it's an intuitive 
conclusion to see that batteries

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could support that peak. 
And in the process, we are 

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increasing the utilization and 
the efficiency of our existing 

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infrastructure. 
So with the growth of renewables

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and the strain on the grid, the 
need for storage is real and we 

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are racing to solve these 
challenges. 

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Our growth with Megapack over 
the last several years has been 

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exponential. 
We have over 36 GW hours 

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installed across 60 countries 
and over 2100 projects. 

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And we have another 30 GW hours 
projected to come online soon 

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with product that we have 
already shipped. 

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We've scaled our manufacturing 
facilities to greater than 80 GW

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hours of manufacturing capacity 
annually, but we recognize we 

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still have a long ways to go. 
We're just at the beginning as 

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the world needs 2.3 terawatt 
hours annually to support a 

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sustainable energy economy. 
We're up for the challenge. 

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But how do we go faster? 
I'm glad you asked. 

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How do we meet this challenge of
a growing energy demand and 

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strained grid infrastructure? 
We need fully integrated 

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solutions that consider the 
entire scope and the lifetime of

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these projects. 
We need solutions that are 

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secure, scalable, resilient, and
that inspire confidence in the 

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technology. 
And quite simply, we need to 

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figure out how to connect into 
the grid faster. 

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So when we started developing 
the latest iteration of 

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Megapack, we focused on three 
guiding principles #1 simplicity

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and speed. 
We recognized that complexity 

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creates risk and it adds delays.
In order to simplify and go 

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faster, we need to figure out 
how to make it easier further 

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upstream in the project #2 we 
needed a flexible platform. 

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The grids needs and the industry
are evolving quickly. 

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We need a platform that is able 
to navigate supply chain 

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complexities, policy changes and
evolving technologies. 

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And #3 we need to continue what 
we do best and leverage our 

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vertical integration. 
We need to enhance the things 

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that we've done well with 
Megapack and learn from our past

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generations of products and 
projects that we've built around

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the world. 
So we're excited to introduce 

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our next generation product, the
next iteration of innovation 

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born from necessity. 
Yeah. 

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All right. 
We're excited to announce Mega 

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Block, the latest evolution in 
our industrial storage product 

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lineup. 
This isn't just a new container 

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or a white box with new specs. 
We focused on this product being

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a plug and play platform, 
hardware, software, services 

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delivered as one all from Tesla 
and moving further up the value 

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stream than we historically 
have. 

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Our Mega Block platform is 
designed for 20 MW hours of 

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usable AC energy, a 25 year 
life, 10,000 cycles and with an 

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industry leading round trip 
efficiency of 91%. 

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So what is Mega Block? 
Let's take a closer look. 

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Mega Block is a pre engineered 
medium voltage block that 

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integrates our next generation 
Megapack Threes. 

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We have eliminated the above 
ground cabling between the 

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transformer and the Megapacks 
using a new flexible busbar 

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assembly. 
So we've essentially made this 

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part of the project now plug and
play. 

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Each block connects to a Tesla 
system controller, which 

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orchestrates control of the 
entire site of up to hundreds of

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Megapacks. 
We've combined these hardware 

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innovations with the same power 
electronics, site controls, 

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software and firmware platforms 
that we've used on previous 

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Megapack generations to reduce 
the risk and allow for a 

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seamless technology transition. 
And really, with Megapack 3, we 

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optimize the product for both 
mass and energy. 

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It was important to us to be 
able to fit the maximum amount 

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of energy per unit mass because 
mass is really where the system 

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breaks. 
We were able to fit 5 MW hours 

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of AC usable energy into 86,000 
LB box 28 foot long enclosure 

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that can be shipped globally. 
We manufacture it in one place 

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to maintain quality and ship a 
pre assembled product anywhere 

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in the world. 
Megapack 3 is optimized for up 

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to 8 hour applications and it 
builds on our proven silicon 

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carbide, Tesla inverters and our
Fire Protection system. 

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The new thermal Bay is 
drastically simplified. 

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It uses the Tesla Model Y heat 
pump essentially on steroids and

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has 78% fewer connections, which
minimizes failure points. 

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We've also also introduced a 
larger battle battery module and

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a larger a larger cell 
leveraging the latest in cell 

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technology. 
And I wanted to talk about the 

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cell and the supply chain a 
little bit because obviously 

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that's a, that's a key component
in the industry. 

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Right now. 
Megapack 3 is using a 2.8 liter 

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cell. 
It's Co engineered with Tesla's 

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cell team and sourced from 
reliable vendors worldwide. 

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And now with Tesla Megapack 
factories in the US and China, 

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we'll be sourcing cells from the
US, Southeast Asia and China, 

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making Mega Block a flexible 
platform ready to handle supply 

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disruptions, policy changes and 
technology evolution. 

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For example, we made sure that 
the platform didn't need to be 

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overhauled. 
If we want to introduce a 5 

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liter cell, we have multiple 
transformer vendors qualified 

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and tested to validate 
performance from the cell level 

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to the medium voltage level. 
Megapack 3 will be manufactured 

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in Houston in late 2026 with a 
manufacturing capacity of 50 GW 

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hours per year. 
Mega Block works even in the 

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harshest climates, with an 
industry leading operating range

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down to -40°C up to 60°, which 
means we can operate from the 

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northern reaches of Alaska and 
Canada to the hottest parts of 

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the Atacama Desert in Chile and 
the Kingdom of Saudi Arabia. 

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And one of our core principles, 
again, in designing Mega Pack 

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Three with simplicity, it's easy
to make things more complicated 

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as you're thinking about 
evolving a new product line. 

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And we wanted to avoid that. 
We wanted to do what we did well

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with Megapack 2XL, which was 
build a product in the factory 

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that is factory tested, ship it 
to the field, ready to connect 

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to the grid with 0 onsite 
assembly. 

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So that effect, Megapack 3 can 
be easily transported using A7 

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axle trailer with no onsite 
assembly. 

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And with a higher energy rating,
we have less Megapacks reducing 

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the costs and we went from up to
24 cable connections between the

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Megapack and the transformer 
down to three simple busbar 

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connections. 
Overall, Megabock is installed 

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with 23% less labor hours, up to
40% lower costs and it's 

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engineered for site level 
density. 

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Now it's it's no secret that the
industry has been trending 

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towards higher and higher energy
density containers. 

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But as we developed this 
product, we realized there was a

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fundamental problem with that 
approach. 

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Once you exceed the maximum 
shipping weight, you introduce 

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risky and costly transportation 
permits and trailers or you you 

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resort to on site assembly, 
installing batteries in the 

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field, validating, integrating, 
commissioning them and not doing

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that in a factory setting. 
And the metric that actually 

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matters is site level density, 
which includes the clearances on

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the ground needed to install and
service your product. 

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Said simply, it's, it's, it's 
not about what you can fit on 

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your site. 
It's, I'm sorry, it is what you 

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can fit on the site. 
It's not about what you can fit 

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in the box. 
This is where we put our focus 

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and our energy, site level, 
energy density and testing in 

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the factory. 
And with that focus, Megapack 

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delivery is an industry leading 
site level density. 

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Commissioning speed. 
Commissioning speed is key. 

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It really is what drives value 
because time is money, 

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especially to a lot of people in
this room. 

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These large capital projects are
tough. 

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They require hundreds of people 
working across several 

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disciplines over the course of 
months or years. 

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Things that might go wrong 
probably will go wrong in that 

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process and you need a partner 
that's going to stand by you 

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through the whole process. 
With Mega Block we are targeting

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to Commission one GW hour in 20 
business days, which is the 

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equivalent of bringing power to 
400,000 homes in less than a 

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month, which is crazy. 
How are we planning to do that? 

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Like most things at Tesla, we 
are ruthlessly attacking every 

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opportunity to save our 
customers time. 

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Simplify the process, remove 
steps, automate as much as you 

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can. 
One example is how we use 

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simulation. 
So we like to bring our 

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customers and sometimes 
utilities and grid operators 

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into a room with our engineers, 
sometimes months before the 

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Megapacks are even delivered to 
the site. 

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And we can take your actual 
hardware and your software 

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controls, the actual software 
that you'll be using on your 

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site. 
Simulate the grid at the exact 

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point in the grid where you will
be connecting and run a bunch of

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simulations, control scenarios, 
grid, grid scenarios to see is 

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this going to work like I 
thought it would work. 

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It's essentially a peek into the
future to see if the project is 

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going to work. 
Our customers love it. 

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It's a great opportunity to sort
out different bugs in the 

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software and it allows you to 
have confidence that when the 

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mega packs are connected to the 
grid, it is going to work. 

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Commissioning this fast is a 
great example of how our 

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vertical integration, our 
engineers across the full 

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spectrum allow us to serve our 
customers. 

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So at Tesla, we do more than 
build the batteries. 

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With most battery OEMs and 
integrators, you have to go to 

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different companies for 
different parts. 

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The batteries for one, the 
inverter from someone else, 

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service from someone else, maybe
site controls again for 1/4 

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counterpart. 
And you can imagine piercing all

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those things together and being 
successful can be difficult. 

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What sets us apart and what 
we're proud about is our ability

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to provide all your needs in one
place, to be your partner 

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through the whole process. 
We provide hardware, software, 

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service fully integrated in one 
package. 

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And I just wanted to take a 
moment to talk about how this 

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full ecosystem has helped our 
customers. 

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Autobidder is our autonomous 
energy trading platform. 

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It's built all right. 
It's built by Tesla's machine 

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learning optimization software 
engineers. 

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And in its most basic form, it 
is buying low and selling high. 

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But in reality, there is 
hundreds of decisions that need 

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to occur in real time in order 
to maximize profits. 

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So here's an example leaderboard
from ERCOT in Texas of one of 

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Tesla's projects and it shows us
at the top of the leaderboard in

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revenue per MW installed. 
And the reason I wanted to bring

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this up is that it's This site 
is not an exception. 

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Autobidder launched in 2017 and 
we have maintained leadership in

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every market we operate in by 
constantly adapting and evolving

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our our algorithm. 
We're excited to launch into 

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France later this year. 
We discussed grid forming 

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software at Investor Day a few 
years ago, and we talked about 

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how it's going to be the future 
of the grid. 

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And honestly, there's been a ton
of momentum over the past couple

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years. 
So what is it exactly? 

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The analogy is that it 
contributes to grid stability, 

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the way a car's shock absorber 
dampens vibrations and keeps the

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ride smooth. 
And the reality is you can't 

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have a fully sustainable grid 
run on run on renewables without

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grid forming software. 
It's what allows us to take the 

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traditional generation off of 
the grid. 

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And I still, I still frequently 
hear that this technology is not

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ready and it's still in the R&D 
phase. 

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This is simply not true. 
Tesla has been deploying grid 

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forming software since 2016. 
We have it operating on over 600

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projects, 600 projects across 4 
GW hours with 10 GW hours coming

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online soon. 
Here you're looking at Plus 

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Powers, Plus Powers project in 
Oahu. 

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This project allowed the island 
to start the start 

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decommissioning and start taking
the last coal power plant 

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offline. 
It represents over 20% of the 

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island's peak load. 
And recently and a few times 

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actually, the battery has been 
able to stabilize the grid when 

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one of the generators trips 
offline. 

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It's doing that using grid 
forming software. 

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So it works. 
It is the future and we are 

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excited to see how it stabilizes
grids around the world. 

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All right, Our global service 
organization, this team is the 

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best. 
They're they're, they're the 

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best team in the world. 
And we're super proud. 

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We're super proud of them. 
And I say that because over this

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last year, they, we, we had 
99.3% uptime on our projects 

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around the world. 
And that is a big fleet to 

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maintain above 99%. 
So, yeah, so how how are we 

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doing this? 
Again, it's like everything 

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else, simplify the process, 
remove steps, automate where you

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can. 
We are using automation to 

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detect issues and to trigger our
field service teams to action 

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around the world. 
We have over the air firmware 

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updates that increase the 
performance and the security of 

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the product over the lifetime of
the project just like we do with

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the vehicles. 
And we have an entire 

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engineering team building 
software and hardware service 

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tools that are purpose built for
Megapack, making every step 

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quicker and faster and focusing 
on time. 

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This year we also launched our 
certified service provider 

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program. 
This enables our customers and 

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third parties access to all the 
service tools that our internal 

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teams have been using for years.
This enables our customers like 

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Southern Company to take 
advantage to take Megapack 

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service into their own hands. 
We are excited to bring our full

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software suite and our service 
platform to Mega Block. 

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And one day, not too distant 
future, we can see Optimus being

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a field service technician, 
reducing costs for both us and 

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for our customers. 
Mega Block builds on 10 years of

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project experience around the 
world. 

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It is simple, it's fast to 
install, it's flexible, and you 

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00:19:29,120 --> 00:19:31,520
get all the integrated service 
and software that you've come to

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00:19:31,520 --> 00:19:35,600
love by working with Tesla, 
because with Tesla, and really 

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00:19:35,600 --> 00:19:38,040
it's been been like this since 
the beginning of the Megapack 

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00:19:38,040 --> 00:19:40,080
program. 
The project is really our 

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00:19:40,080 --> 00:19:46,120
product. 
Global power infrastructure is 

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00:19:46,120 --> 00:19:49,280
under pressure and we need 
scalable and reliable energy 

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solutions that can deploy 
quickly. 

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Mega Block accelerates the 
ability to solve these problems.

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The people in this room, you 
guys are the ones changing the 

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world. 
You guys are building the 

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00:19:59,680 --> 00:20:01,000
projects. 
You're developing it over the 

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course of a long time and 
investing your money. 

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00:20:03,120 --> 00:20:05,760
We are excited to transform. 
We are excited and humbled to 

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00:20:05,760 --> 00:20:09,160
transform the grid with you. 
Together, we can deploy the 

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terawatt hours needed to power a
sustainable future. 

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And tonight, we're excited to 
have a prototype of Megapack 3 

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upstairs. 
I just want to say thank you to 

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everyone that has made this 
trip. 

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00:20:20,280 --> 00:20:23,920
Thank you for supporting us. 
Thank you for for being partners

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00:20:23,920 --> 00:20:26,880
and all these large projects and
for trusting Tesla with those 

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00:20:26,880 --> 00:20:28,200
projects. 
Have a great night. 

335
00:20:40,520 --> 00:20:42,240
Hey, thank you so much for 
listening today. 

336
00:20:42,240 --> 00:20:44,280
I really do appreciate your 
support. 

337
00:20:44,280 --> 00:20:47,120
If you could take a second and 
hit the subscribe or the follow 

338
00:20:47,120 --> 00:20:49,320
button on whatever podcast 
platform that you're listening 

339
00:20:49,320 --> 00:20:52,000
on right now, I greatly 
appreciate it. 

340
00:20:52,000 --> 00:20:54,640
It helps out the show 
tremendously and you'll never 

341
00:20:54,640 --> 00:20:57,600
miss an episode. 
And each episode is about 10 

342
00:20:57,600 --> 00:21:00,240
minutes or less to get you 
caught up quickly. 

343
00:21:00,640 --> 00:21:03,360
And please, if you want to 
support the show even more, go 

344
00:21:03,360 --> 00:21:09,040
to Atreoncom Stage Zero and 
please take care of yourselves 

345
00:21:09,040 --> 00:21:10,960
and each other, and I'll see you
tomorrow.