SpaceX spent $295M on Tesla Megapacks in Q2
What's the story
SpaceX has made a major investment in Tesla's Megapack battery storage devices, spending $295 million in Q2 and a total of $329 million so far this year. The information comes from the company's earnings report released on Tuesday. The purchase highlights the close relationship between Elon Musk's various companies, as he is both CEO and largest shareholder of SpaceX and also runs Tesla.
Deployment details
Megapacks likely used at xAI data centers
The industrial-scale batteries are probably being used at SpaceX's xAI data centers.
Before the merger with SpaceX, xAI had already purchased $430 million worth of Megapacks for its data centers.
In Q1 2026 alone, xAI had spent just $34 million on this equipment. This further emphasizes the importance of these battery storage devices in powering AI operations and projects within Musk's companies.
Additional investments
SpaceX has also invested heavily in Tesla Cybertrucks
Along with its Megapack purchases, SpaceX has also invested heavily in Tesla Cybertrucks.
According to a regulatory filing, the company had acquired $131 million worth of these vehicles at the manufacturer's suggested retail price by December 2025.
This further shows how much Musk's companies are investing in each other's products and services to further their respective goals.
Importance of batteries
Megapacks remain vital for xAI
Despite xAI's heavy reliance on natural gas to power its data centers, large batteries like the Megapack remain vital.
They provide backup power in a second or less and additional power to GPUs when needed.
AI data centers don't have a constant power demand; it fluctuates based on the requirements of training AI models and running inference tasks.
Power management
Importance of large batteries like Megapack in AI operations
The fluctuating power demand of AI data centers can lead to high costs from local utilities or even overload on-site generators.
This is where batteries come into play, helping manage these peaks and ensuring consistent operation while reducing costs.
The use of Megapacks by SpaceX and xAI highlights the importance of battery storage devices in maintaining efficient and cost-effective operations in the world of artificial intelligence.