Brian Wang, Herbert Ong and Hans Nelson are covering the TESLA Megapack event. There will be new megapack products announced. Likely a mini megapack with about 500 kilowatt hours of energy. In between power walls and 3.9 MWh megapacks. There will likely be a megapack V3 that will have transformer components for easy lego construction of grids and converting solar power for easy and fast usage for AI data centers and truck megacharging.
They announced the 20 MWH megablock made from 4 Megapack V3. Over 25% higher energy density but still lighter than old megapacks.
Tesla will make their own transformers. There was a shortage of transformers. This is huge.
Revenue recognition will be faster.
80 GWH/year of megapacks from Lathrop california and Shanghai.
50 GWH/year of new megablck megapacks with all of the transformers and switches to go with it.
They will have 130 GWh/year of production in second half of 2026. They should go to 30-35 GWh/year of production and installation for Tesla energy.
The transformers and switches in each megablock will add value and revenue.
There was a shortage of transformers and Tesla will start making their own starting from the second half of 2026. It was slow and problematic installing and transporting energy storage and Tesla is solving that as well.
Medium Voltage Transformer: For a 5 MVA unit (suitable for stepping up from low-voltage battery inverters to medium voltage like 34.5 kV), costs typically range from $50,000 to $200,000 in 2025. This is based on breakdowns showing $20-40/kW for grid integration components including transformers in utility-scale BESS, scaled to 5 MW. Dry-type options may be lower ($10,000-50,000 for smaller or standard units), while oil-filled pad-mounted transformers for outdoor BESS applications trend higher due to durability and efficiency requirements. Adjusted for 2025 from 2021-2022 baselines ($25/kW), with modest reductions from learning curves (4-6% by 2030), expect ~$23/kW or ~$115,000 total.
Medium Voltage Switchgear: For a 5 MW system (e.g., metal-clad or metal-enclosed air/gas-insulated units for protection and isolation), costs range from $50,000 to $150,000. This often falls under balance-of-plant (BOP) or power conversion system (PCS) costs at $10-30/kW, including breakers and controls. SF6-free eco-friendly options add 5-20% premium.
There is a notable shortage of medium voltage transformers (typically classified as distribution transformers up to 35 kV) in the US as of 2025, driven by surging demand from renewables, data centers, EVs, and grid upgrades. Supply is projected to fall short by ~10% for distribution transformers, with lead times averaging 1 year (up from historical 3-6 months). Power transformers (higher voltage, larger) face a worse 30% shortfall and 3-year waits, but medium voltage is less acute though still impacted. Imports cover ~50% of supply, but domestic production lags amid material constraints (e.g., steel, copper) and manufacturing capacity. This could inflate costs by 10-20% and delay projects
They have started with a bigger megapack. Five times the power 20 MWh. Four megapack 3 units.
Transportable by regular trucks without extra permits.
Tested in the factory.
Installed fast on site. they can install 1 gigawatt hour in 20 days. This means faster revenue recognition.
Teslabot will become a field service technician in the future.
Picture of what is believed to be mini megapacks and also covered megapacks that could have enhanced electronics.
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
Known for identifying cutting edge technologies, he is currently a Co-Founder of a startup and fundraiser for high potential early-stage companies. He is the Head of Research for Allocations for deep technology investments and an Angel Investor at Space Angels.
A frequent speaker at corporations, he has been a TEDx speaker, a Singularity University speaker and guest at numerous interviews for radio and podcasts. He is open to public speaking and advising engagements.