tech
January 29, 2026
Tesla sold $430 million worth of its Megapack backup batteries to Musk's xAI in 2025
In Tesla's annual financial filing, the company said that last year it sold $430 million worth of its energy storage products to xAI, Elon Musk's AI startup.
TL;DR
- Tesla sold $430 million worth of energy storage products (Megapacks) to Elon Musk's AI startup, xAI, in 2025.
- These sales constituted approximately 3.4% of Tesla's energy business revenue for that year.
- Tesla also invested $2 billion in xAI as part of its latest funding round.
- xAI is using Tesla Megapacks to power its data infrastructure near Memphis, Tennessee.
- xAI's operations at its Colossus facility were reportedly using natural gas-burning turbines, leading to community complaints about emissions.
- xAI's Grok chatbot and image generator are under investigation for enabling the creation of explicit deepfake images.
- Musk faces accusations in a pending lawsuit of violating fiduciary duty to Tesla shareholders by diverting resources to xAI.
- Tesla's energy division revenue grew, while its auto revenue declined, leading to a record drop in total sales.
- xAI recently raised $20 billion from investors including Nvidia and Cisco.
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