SpaceX purchased $295 million worth of Tesla Megapacks during the quarter ending June 30, 2026, according to financial filings. The battery energy storage systems are being installed at the company's Colossus AI data centers in the Greater Memphis area. CEO Elon Musk's aerospace conglomerate is procuring the products from Tesla, another company he leads, to help power its expanding artificial intelligence infrastructure.
SpaceX Half-Year Megapack Spending Reaches $329 Million
The second-quarter purchases bring SpaceX's half-year total spending on Tesla Megapacks to $329 million. SpaceXAI has been installing these battery energy storage systems at its Colossus data centers in the Greater Memphis area.
Tesla Megapacks Store Energy for Data Centers and Utilities
Megapacks are used for business and utility-scale developments, and Tesla's newer Megablocks are a combination of four Megapacks around one transformer. The systems use lithium-ion or other battery cells and help data centers and utilities avoid blackouts, allowing for energy storage from all sources, including fossil fuels and renewable and intermittent sources like solar and wind.
Tesla is not the only company making battery energy storage systems. Top competitors, according to research by Wood Mackenzie, include China's Sungrow, BYD, CATL, Korea's LG, and U.S.-based Fluence, among others.
SpaceX Operates Natural Gas Turbines Alongside Battery Systems
At the SpaceXAI Colossus and Colossus 2 facilities in Greater Memphis, the company has also installed and used dozens of natural gas-burning turbines for power generation. Emissions and noise from the turbines have led to community uproar, with Greater Memphis residents complaining of the smell, health problems, noise and air pollution.
NAACP Sues SpaceX Over Memphis Turbine Emissions
The NAACP has sued SpaceXAI, which was formerly known as xAI, in a federal court in Mississippi to try to stop Musk's company from the continued use of the turbines without pollution controls or federal permits.
Musk Targets 20 Gigawatts Power Capacity by End of Next Year
On SpaceX's second-quarter earnings call, Musk said the company plans to rapidly expand its AI infrastructure and power plants. "Our tentative target is to actually have 20 gigawatts of power and cooling live online by the end of next year," he said. Some projects "won't pan out exactly on time," he added, "but I would expect that we'd still probably have at the, at the power plant level, something close to 15 gigawatts."
SpaceX Purchased $506 Million Tesla Products in Previous Year
Last year, before it was a publicly traded company, SpaceX bought $506 million of Megapack products from Tesla, and spent another $131 million on Tesla Cybertruck vehicles, which it said were purchased at manufacturer's suggested retail prices without discounts. The Cybertruck purchases by SpaceX came as consumers' interest in the angular steel pickups had waned, and following a myriad of safety recalls. SpaceX did not disclose any further purchases of Cybertrucks in the first half of 2026.
FAQ
What did SpaceX purchase from Tesla in Q2 2026?
SpaceX purchased $295 million worth of Tesla Megapacks during the quarter ending June 30, 2026, according to financial filings. These battery energy storage systems are being installed at the company's Colossus AI data centers in the Greater Memphis area.
Why is the NAACP suing SpaceX?
The NAACP has sued SpaceXAI in a federal court in Mississippi to try to stop Musk's company from the continued use of natural gas-burning turbines without pollution controls or federal permits at its Memphis facilities. Greater Memphis residents have complained of smell, health problems, noise and air pollution from the turbines.
