The move will put the US company in direct competition with a conglomerate controlled by Indian billionaires Mukesh Ambani and Goetham Adani, according to Reuters. According to "News.ro" reported that this new business marks Tesla's expansion in India beyond the scope of electric car sales, the company will start selling electric cars in the Indian market in August this year.
Tesla already operates a program called Megapack in the United States and other markets to provide large-scale energy storage systems to businesses and grid operators. The expansion plan was made public through a job advertisement, and Tesla is looking for a head of business development in India to "develop and implement a complete market expansion strategy for industrial energy storage solutions". The position calls for coordinating Tesla's entry into utility-grade energy storage systems, but the announcement did not provide further project details. The plan was first reported by Reuters, and the company has not yet responded to a request for comment. In this market, Tesla will compete with the ambitious projects of Mukesh Ambani's Reliance Group and the Goetham Adani-controlled Adani Group, both of which have invested heavily in energy storage.
India has set a target of 500 gigawatts of non-fossil energy capacity by 2030, compared with more than 262 gigawatts by the end of 2025. To achieve this, systems that can store energy during low consumption periods, stabilize the grid, and reduce carbon emissions are needed. The Indian government encourages investment in these technologies through tax incentives and is committed to developing a national energy storage infrastructure development strategy.
Tesla to Buy Chinese Equipment for Solar Panels and Batteries for $2.9 billion
Elon Musk's company is in talks with a number of Chinese companies to buy about $2.9 billion worth of solar panel and battery production equipment. The move is part of CEO Elon Musk's master plan to install 100 gigawatts of solar capacity in the United States, Reuters said. Musk said in January that solar could meet all of the U.S. electricity needs, including the growing demand for data centers.
The job announcement released by Tesla shows that the company plans to achieve 100 gigawatts of solar production capacity by the end of 2028, completely on U.S. soil, from raw materials to final products, according to News.ro. Potential suppliers include Suzhou Maxwell Technologies, the world's largest producer of printing equipment for solar cell manufacturing. The company has started applying to the the People's Republic of China Commerce Department for an export license, the sources said. Other potential suppliers include Shenzhen S.C New Energy Technology Co., Ltd. and Laplace New Energy Technology Co., Ltd.
It is estimated that some of the equipment included in the approximately RMB 20 billion contract may require special export approval from the Chinese authorities, but it is not clear how much equipment is involved in this procedure or how long the authorization will take. The source pointed out that Chinese companies have been told that the equipment must be delivered before this fall, and some equipment will be shipped to Texas. The solar capacity is expected to be mostly used by Tesla, but some of the energy could also power SpaceX satellites. The order is an important boost for Chinese solar equipment manufacturers, which are currently facing sluggish demand due to domestic oversupply.
At the same time, the situation highlights the difficulties the United States faces in trying to reduce its dependence on China. Much of the equipment used in solar plants is produced almost exclusively in China, despite Washington's attempts to restart domestic production. The Biden administration, at the request of U.S. solar panel producers, excluded solar production equipment from the tariff list for Chinese imports in 2024, citing a lack of alternatives. This exception was subsequently kept by the Trump administration at a time when the United States is trying to build its own solar supply chain.
Musk has often criticized the trade tariffs, saying they have "artificially high" solar costs in the United States at a time when the country is facing an energy crisis triggered by demand for AI data centers and industry growth. According to the U.S. Energy Information Administration, U.S. electricity consumption will hit a new high in 2025 and is expected to continue to grow in 2026 and 2027. In 2024, the total installed power generation capacity in the United States will be about 1300 GW, of which only 135 GW will come from solar energy.
Tesla is trying to localize more of its supply chain in different regions, but still relies on about 400 suppliers in China to keep costs low. Supply chain problems affected production preparations for U.S. Cybertruck and Semi models last year, when some Chinese component supplies were suspended due to trade tariff hikes.
Tesla starts powering homes in the UK
According to the recent announcement, Tesla will soon start supplying electricity to British homes, in addition to its core car manufacturing business. The country's energy regulator, Ofgem, said Tesla Energy, one of Tesla's energy investment Ventures, had been granted a license as a power supplier after a process begun in July last year.
The new license sets the stage for Tesla to expand in the UK, where it will try to leverage its business in solar and battery storage to compete directly with existing home energy providers such as Octopus Energy, British Gas and EDF, Hotnews. Tesla's UK subsidiary Tesla Motors Limited previously had a power generation license. Some Tesla electric car owners use household battery Powerwall to charge their vehicles using solar energy, and the excess energy can be sold back to the grid.
With the outbreak of war against Iran and retaliatory attacks by Tehran, energy prices have risen sharply, including in the UK, raising concerns about the bill for British consumers. Most UK households are protected by regulated rates from the direct impact of rising gas prices for heating and electricity until July this year, but the government will be under pressure to provide assistance if the conflict lasts longer.