Tesla turns on Megapack 3 production in Texas as energy storage further boosts its business mix

Tesla has begun work to build Megapack 3 batteries at its new Brookshire, Texas Megafactory, according to a Yahoo Finance report published Aug. 7, 2026. The update indicates a ramp in Tesla’s utility-scale energy storage pipeline at a time when the company has increasingly positioned batteries as a major growth lever beyond car sales.

The report frames the move as part of a broader shift in Tesla’s revenue mix, arguing that its battery business is growing faster than its vehicle business. In practical terms, that puts more weight on Megapack deployments, manufacturing throughput, and the economics of storing and delivering electricity for grid operators, data centers, and other large customers.

Megapack 3 is Tesla’s newer generation of large-scale battery energy storage, designed for utility-scale power applications. While the company has previously described Megapack as a product aimed at storing energy when supply exceeds demand and releasing it when it is needed, this report focuses specifically on Tesla’s manufacturing progress tied to the third-generation configuration.

Brookshire, Texas is the location of Tesla’s energy-focused Megafactory, which the report says is now under construction for Megapack 3. Battery production growth at such sites is typically intended to shorten delivery timelines, expand capacity for new contracts, and reduce reliance on slower, more incremental scaling.

Still, Tesla did not provide detailed, verifiable production figures in the material associated with this update, such as the expected monthly output rate, near-term customer delivery schedules, or any change to prior guidance. Without those specifics, investors and customers will likely watch for follow-on disclosures that quantify the ramp and translate it into deliveries or revenue.

Tesla’s energy storage business has been expanding alongside utility needs for grid flexibility, especially as more intermittent renewables come online. Compared with autos, energy storage can also be tied to project-by-project purchasing cycles, where manufacturing capacity and logistics can materially affect how quickly contracted systems can be delivered.

The report’s emphasis on speed of growth is consistent with Tesla’s broader strategy to become a vertically integrated energy and infrastructure supplier. If battery-related production continues to scale faster than vehicles, it can change how investors evaluate Tesla, shifting attention toward storage margins, manufacturing yields, and the pace of large deployment wins.

For readers, the key unknown remains the scale of the Brookshire ramp and how quickly Megapack 3 output will translate into contracted shipments. The company’s reporting cadence, any operational announcements tied to commissioning milestones, and later confirmations from Tesla’s financial disclosures will be the main places to look for clarity on these points.