Tesla, NatPower strike 25 GWh Megapack storage deal
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- Tesla and NatPower struck a multiyear deal for 25 GWh of Megapack storage across Italy and the UK, valued at $4-5 billion for the first phase, announced Tuesday.
- NatPower will deploy Tesla Megapack hardware alongside Tesla's trading and dispatch software, which decides when to charge and discharge the batteries to capture grid price swings.
- The broader NatPower program aims to exceed 100 GWh of storage capacity, with potential revenue topping $15 billion over 20 years.
- Tesla's energy storage division deployed a record 46.7 GWh in 2025, up roughly 48% year-over-year, with Q1 2026 deployments hitting ~14.4 GWh, making it the company's fastest-growing business line as its automotive unit has stalled.
- The 25 GWh phase-one alone equals more than half of everything Tesla deployed globally in all of 2025, underscoring the scale of the NatPower commitment.
- TSLA was down about 3.3% in pre-market trading Tuesday, weighed down by separate reports of a ransomware group leaking confidential documents tied to Tesla and Apple.
- NatPower CEO Fabrizio Zago framed the deal as building an "ecosystem" that aligns capital with execution and can be replicated across multiple markets, addressing what he called the sector's struggle to deliver infrastructure on time.
Why it matters: Tesla's energy storage arm — its only fast-growing business — just landed a customer committing to more than half of last year's total global deployments as phase one, with software that turns each battery site into a higher-margin, recurring revenue asset. For Europe's grid operators racing to firm up intermittent wind and solar, 25 GWh of dispatchable capacity with trading software attached materially expands the toolkit to avoid curtailment in Italy and the UK.
