Tesla has revealed the location of its third Megafactory, following Mega Lathrop and Mega Shanghai. The new facility will be in Brookshire, Texas, covering 1.6 million square feet—twice the combined size of Mega Lathrop and Mega Shanghai.
Tesla has had a lease deal at the Empire West industrial park since at least late 2021, where a third-party company has been managing the shipment of vehicle parts from Giga Texas and Fremont factories service centers across North America.
Mega… Factory?
The name says it all. Tesla’s Gigafactories focus on vehicle production—like Giga Texas, Giga Berlin, and Giga Shanghai—while Megafactories are dedicated to Tesla’s energy products.
Tesla Energy is expanding rapidly, with executives suggesting it could soon become one of the company’s largest revenue streams as demand continues to outpace supply.
Mega Brookshire will manufacture Megapacks and Powerwalls, Tesla’s primary stationary energy products. Both use LFP batteries, meaning their production won’t impact Tesla’s vehicle output, as most of the company’s cars rely on NMC batteries.
Looking at the Numbers
Tesla plans to invest approximately $194 million in upgrades and equipment across the two buildings, with the facility projected to generate between $8 billion and $10 billion in annual revenue.
Of that investment, $44 million will go toward facility improvements, such as parking, electrical upgrades, accessibility, and structural updates. The remaining $150 million will be allocated to Tesla-sourced manufacturing equipment for product production.
Tesla will also be employing approximately 1,500 people in the local community, which will be a considerable economic boost for the local residents.
Mega Brookshire Phase 2
The Megafactory plans also include funding for a distribution facility, with Tesla set to invest $31 million in its purchase and an additional $2 million for equipment and facility upgrades. Given its proximity to Giga Texas, it’s likely that Mega Brookshire’s distribution terminal will support the Tesla Semi.
This marks Tesla’s first factory announcement since Mega Shanghai. While there were initial plans for Giga Mexico, where Tesla initially planned to build their next-gen vehicle, those plans have seemingly been shelved as Giga Texas and Fremont continue to expand.
Although an official timeline for Mega Brookshire’s launch hasn’t been shared, Mega Shanghai is set to begin production soon after breaking ground in May 2024. Based on that timeline, Mega Brookshire could be operational by mid-to-late 2026.
