Tesla has started the construction of a significant battery production plant in Shanghai, following CEO Elon Musk's recent visit to China to boost the company's sales performance. The new facility, announced last year, is expected to commence operations in the first quarter of 2025. It will have the capacity to manufacture 10,000 Megapacks annually, large batteries designed for storing substantial electricity quantities, according to the Lingang Group statement. These Megapacks play a crucial role in grid stabilization, with each unit having the ability to power around 3,600 homes for an hour. The project, costing $200 million, underscores Tesla's commitment to China amidst escalating tensions between Beijing and Washington over trade policies and geopolitical issues.