Tesla Expands in Texas with New Megafactory for Energy Storage

Tesla Inc. (NASDAQ: TSLA) is set to build a new Megafactory near Houston, Texas, dedicated to producing Megapack energy storage systems, according to Electrek. The facility, located in Waller County, is part of a tax abatement agreement aimed at boosting local manufacturing and job creation.

Under the deal, Waller County will provide tax incentives for $44 million in facility upgrades and $150 million in manufacturing equipment. The project is expected to generate around 1,500 jobs, reinforcing Tesla’s commitment to expanding energy storage solutions in the U.S.

Tesla plans to repurpose a 1-million-square-foot building at the Empire West industrial park near Katy, Texas. Previously leased by logistics company DB Schenker, the site will be transformed into a Megapack production plant. Additionally, a 600,000-square-foot distribution center with some manufacturing capabilities is in the works.

This Texas Megafactory will be Tesla’s third, following plants in Lathrop, California, and Shanghai, China. While Tesla has not disclosed the expected production capacity, existing Megafactories are designed to produce 40 GWh of Megapacks annually, supporting the growing demand for large-scale energy storage solutions.

Elon Musk’s Tesla continues to expand its energy infrastructure, strengthening its presence in renewable energy storage. The new facility underscores Tesla’s push to meet the rising demand for grid-scale batteries, further solidifying its position in the clean energy sector.