Tesla Unveils Megapack 3 and Megablock: Giant Grid Batteries for Cities

Tesla unveiled its next-generation utility-scale energy storage products — Megapack V3 and a new pre-engineered platform called Megablock — during its “Las Megas” event in Las Vegas on Monday.

Megapack V3 introduces a redesigned architecture that significantly improves installation speed, efficiency, and long-term reliability. Each unit offers 5 MWh of usable AC energy in a massive 28-foot enclosure weighing 86,000 lbs.

Tesla has simplified the system by reducing the number of cable connections from 24 in the current Megapack 2XL to just three busbar connections, while also enabling front-access service. Notably, 75% of Megapack 3’s mass consists of battery cells, co-engineered with Tesla’s cell team, utilizing a new 2.8-liter LFP battery format.

The unit uses a souped-up version of the Model Y heat pump in a streamlined thermal bay with 78% fewer connections, further minimizing failure points. Tesla confirmed that Megapack 3 will be manufactured at its new Megafactory near Houston, Texas, beginning in late 2026. The site will have a 50 GWh annual capacity, with some battery cells sourced from Tesla’s upcoming 7 GWh Nevada LFP facility.

Building on this new hardware, Tesla also introduced Megablock, a plug-and-play solution designed to slash installation time and costs. Each Megablock integrates multiple Megapack 3 units, transformers, and a flexible busbar assembly that eliminates above-ground cabling. Elon Musk confirmed on X that Tesla will begin producing its own transformers, a move that will further deepen vertical integration across the company’s energy business.

Tesla claims Megablock enables 23% faster deployment with up to 40% lower construction costs. A single 20 MWh Megablock can operate in extreme climates and deliver 91% medium-voltage round-trip efficiency.

Perhaps most impressively, Tesla says Megablock can scale to commission 1 GWh of energy storage in just 20 business days — enough to power 400,000 homes. Combined with Tesla’s Autobidder trading platform, which already manages over 600 projects globally, the new systems are positioned to replace fossil fuel plants with clean, dispatchable energy.

With Megapack V3 and Megablock, Tesla is pushing to accelerate grid-scale electrification worldwide, positioning batteries as the backbone of future energy infrastructure.