Tesla And Natpower Sign A $4-5 Billion European Battery-Storage Deal, Even As Tesla Stock Falls
Tesla (Nasdaq: TSLA) and independent energy firm NatPower announced a multi-year deal to build 25 gigawatt-hours of battery storage in Italy and Britain using Tesla's Megapack systems and trading software - the first phase of a program targeting more than 100 GWh, across five initial projects, according to Reuters. The companies put construction costs at $4 billion to $5 billion and said revenue could exceed $15 billion over 20 years, a company forward-looking figure. NatPower CEO Fabrizio Zago said the partnership aligns capital with execution in a way that can be replicated across markets. Tesla shares still fell about 6.6% to around $390.77 intraday with the broad tech tape.
A signed $5 billion storage mandate doing nothing for Tesla's stock on the day shows how completely the macro chip rout overwhelmed company-specific good news.
The deal is a hard, signed agreement, but the revenue figure is a projection. Reuters reported a firm deal for 25 GWh across five projects at $4 billion to $5 billion in construction cost, while the more-than-$15-billion revenue figure over 20 years is the companies' own forward-looking estimate.
Storage is Tesla's bet on the same AI power demand lifting the grid. Building grid-scale Megapack capacity in Europe positions Tesla to supply the electricity-storage buildout that AI-driven demand is accelerating.
The deal could not lift Tesla against the day'sheavy tech selloff.
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