A land acquisition and signing ceremony for Tesla's Megapack project was held in Shanghai on Friday morning, marking the official start of what the company called a "milestone project".

(Image credit: CnEVPost)

Tesla's business landscape consists mainly of EVs and renewable energy, and the latter is divided into solar and energy storage units, which are currently available in the form of the Powerwall, Powerpack, and Megapack.

Each Megapack unit can store more than 3 MWh of energy, enough to meet the electricity needs of 3,600 households for one hour, according to Tesla's website.

On December 6, a report from local media outlet LatePost said that Tesla's energy storage battery products will also be sold in China.

The energy storage products planned to be sold in China are expected to help Tesla expand more sources of revenue and profit, with the business, which is currently focused on the US market, bringing in $1.56 billion in revenue in the third quarter, or 7 percent of total revenue, the report said.

Tesla's Megafactory in Shanghai will initially source batteries from CATL, and may later move to producing its own batteries, LatePost said, citing speculation from industry sources.

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