Tesla Says Megapacks Are Almost Sold Out for 2027

Credit: Tesla

Tesla is close to selling out its Megapack supply for all of 2027, CEO Elon Musk said on Tesla’s Q3 2026 earnings call on October 21. Musk said Tesla is “almost sold out of all Megapacks for 2027” and is ramping production as quickly as it can to keep up, adding, “We also expect gross margins on that to increase meaningfully.”

Energy storage deployments reached 13.7 GWh in the third quarter, which chief financial officer Vaibhav Taneja called Tesla’s second-best quarter ever, and the company’s deck listed its “highest-ever order rate and backlog” for storage. Revenue from the business still fell 16% from a year earlier to US$2.88 billion, partly because of tariff-related customer refunds, as we covered in our Q3 2026 earnings story.

Data centers are a big part of that demand, according to Taneja. “The business is witnessing extreme demand from data centers,” he said, and Tesla is doing what it can to raise output. He said that should lead to “improvements in ASP and further improvements in margins as we move forward,” referring to the average selling price of its storage products.

Margins on energy already jumped in the third quarter, from 20.4% to 33.1%, but Taneja was clear that most of that came from items outside normal sales. The improvement “is primarily attributed to tariff refunds recognized in the quarter and warranty true-downs,” he said, the second of which came from an agreement with a supplier to reimburse Tesla for certain cell-related costs. Taneja added that the tariff refund money is being reinvested to expand production capacity in the U.S.

On the newer Megapod product, which an analyst said Tesla had mentioned last quarter, Musk said it was too early to size up. “I think we’ll have a better sense for that probably in maybe end of Q1 or Q2,” he said, adding that it has “a lot of potential,” even if it’s hard to say how much right now.

Capacity is catching up as well, since Megafactory Texas started production in the quarter with a planned 50 GWh a year, joining 40 GWh in California and 20 GWh in Shanghai. That adds up to about 110 GWh of Megapack capacity, as we broke down in six things Tesla’s Q3 deck revealed, and Tesla also shipped its first Megapacks built only with LFP cells from its Nevada factory.

Recent orders give a sense of where that capacity is headed, including a deal earlier this month in which Taiwan’s Apollo Power agreed to buy 260 Megapack 2XL units, about 1 GWh, tied partly to AI data center projects, with deliveries running through the end of 2027.

Will data centers end up as Megapack’s biggest customer?