Tesla Unveils Powerwall 3: Specs, What's New and How It Compares to Powerwall 2

By Kevin Armstrong
Tesla has introduced its newest Powerwall, Powerwall 3
Tesla has introduced its newest Powerwall, Powerwall 3
Not a Tesla App

Tesla continues its foray into home energy solutions with the highly anticipated launch of Powerwall 3, a product that pledges to redefine sustainable home energy systems. Official details emerged, painting a promising picture of the capabilities and features of the next-generation home battery.

What Sets It Apart

Building on the success of its predecessors, the Powerwall 3 retains the same 13.5 kWh energy capacity in Powerwall 2. However, the noteworthy upgrade comes in the amount of power it can provide — an increase to 11.5 kW continuous power, instead of 10 kW peak on the Powerwall 2.

The Powerwall 3 also had its on-grid power increase substantially from 5.8 kVA (4.64 kW) to 11.5 kW, both continuously.

Built-in Inverter

A major distinguishing feature is the fully integrated solar inverter with a capacity to handle up to six solar inputs, facilitating high-efficiency direct solar connections. This move showcases Tesla’s commitment to advancing clean energy solutions, setting a new benchmark in solar-to-grid energy conversion efficiency pegged at a staggering 97.5%.

Compatibility and Expansion Possibilities

While it’s built for the future, the Powerwall 3 seems to take a step back in terms of compatibility with existing setups. Tesla has clarified that this new release will not be compatible with Powerwall 2 units or other solar inverters, indicating a clear pathway Tesla envisions for its users — a one-brand ecosystem that promises seamless integration and efficiency.

Prospective buyers should note the enhanced scalability; a single unit can be easily expanded to meet growing energy demands, with a maximum additional capacity of 40.5 kWh per unit. However, it seems Tesla is looking to streamline its operations by directing new solar installations towards the Powerwall 3 while recommending Powerwall 2 for additions to existing solar setups.

Design and Installation

Tesla has slightly redesigned the Powerwall 3, making it compact yet heavier compared to its predecessor. With dimensions of 43.25 in x 24 in x 7.6 in and a weight of 287 lbs, it seeks to blend power with aesthetics. Installation includes the promise of seamless backup transition and resilience against flood and dust, adhering to North American safety and EMI standards.

Despite the buzz and some users reporting early installations, the wide-scale availability of Powerwall 3 is slated for 2024. Moreover, it will not be part of the $500 rebate offer that is currently applicable to Powerwall 2 and Powerwall+ installations happening between June 15, 2023, and October 31, 2023.

Comparing Powerwall 2 and Powerwall 3

Feature Powerwall 2 Powerwall 3
Energy Capacity 13.5 kWh 13.5 kWh
On-Grid Power 5.8 kVA continuous 11.5 kW continuous
Backup Power 10 kW peak, 106A LRA motor start 11.5 kW continuous, 150 LRA motor start
Size (L x W x D) 45.30 in x 29.6 in x 5.75 in 43.25 in x 24.0 in x 7.60 in
Weight 251.3 lbs 287 lbs
Warranty 10 years 10 years
Scalability Single size Up to 40.5 kWh max addition per unit
Inverter Not included Included (6 solar inputs)

As Tesla prepares to roll out the Powerwall 3, prospective users are keen on the transformative features it brings to the home energy landscape. The inclusion of an integrated solar inverter and system controller stands out, promising an efficient and versatile home energy solution. However, it's not without its limitations, particularly concerning compatibility and financial incentives.

Tesla Updates Robotaxi App: Adds Adjustable Pick Up Locations, Shows Wait Time and More [VIDEO]

By Karan Singh
Nic Cruz Patane

Tesla is rolling out a fairly big update for its iOS and early-access-only Robotaxi app, delivering a suite of improvements that address user feedback from the initial launch last month. The update improves the user experience with increased flexibility, more information, and overall design polish.

The most prominent feature in this update is that Tesla now allows you to adjust your pickup location. Once a Robotaxi arrives at your pickup location, you have 15 minutes to start the ride. The app will now display the remaining time your Robotaxi will wait for you, counting down from 15:00. The wait time is also shown in the iOS Live Activity if your phone is on the lock screen.

How Adjustable Pickups Work

We previously speculated that Tesla had predetermined pickup locations, as the pickup location wasn’t always where the user was. Now, with the ability to adjust the pickup location, we can clearly see that Tesla has specific locations where users can be picked up.

Rather than allowing users to drop a pin anywhere on the map, the new feature works by having the user drag the map to their desired area. The app then presents a list of nearby, predetermined locations to choose from. Once a user selects a spot from this curated list, they hit “Confirm.” The pickup site can also be changed while the vehicle is en route.

This specific implementation raises an interesting question: Why limit users to predetermined spots? The answer likely lies in how Tesla utilizes fleet data to improve its service.

Release Notes

While the app is still only available on iOS through Apple’s TestFlight program, invited users can download and update the app.

Tesla included these release notes in update 25.7.0 of the Robotaxi app:

  • You can now adjust pickup location

  • Display the remaining wait time at pickup in the app and Live Activity

  • Design improvements

  • Bug fixes and stability improvements

Nic Cruz Patane

Why Predetermined Pick Up Spots?

The use of predetermined pickup points is less of a limitation and more of a feature. These curated locations are almost certainly spots that Tesla’s fleet data has identified as optimal and safe for an autonomous vehicle to perform a pickup or drop-off.

This suggests that Tesla is methodically “mapping” its service area not just for calibration and validation of FSD builds but also to help perform the first and last 50-foot interactions that are critical to a safe and smooth ride-hailing experience.

An optimal pickup point likely has several key characteristics identified by the fleet, including:

  • A safe and clear pull-away area away from traffic

  • Good visibility for cameras, free of obstructions

  • Easy entry and exit paths for an autonomous vehicle

This change to pick-up locations reveals how Tesla’s Robotaxi Network is more than just Unsupervised FSD. There are a lot of moving parts, many of which Tesla recently implemented, and others that likely still need to be implemented, such as automated charging.

Frequent Updates

This latest update delivers a much-needed feature for adjusting pickup locations, but it also gives us a view into exactly what Tesla is doing with all the data it is collecting with its validation vehicles rolling around Austin, alongside its Robotaxi fleet.

Tesla is quickly iterating on its app and presumably the vehicle’s software to build a reliable and predictable network, using data to perfect every aspect of the experience, from the moment you hail the ride to the moment you step out of the car.

Tesla Will Face $2 Billion in Lost Profit as 'Big Beautiful Bill' Kills EV Credits

By Karan Singh
Not a Tesla App

The massive legislative effort titled the "Big Beautiful Bill" is taking direct aim at what has become one of Tesla’s most critical and profitable revenue streams: the sale of US regulatory credits. The bill could eliminate billions of dollars from Tesla’s bottom line each year and will slow down the transition to electric vehicles in the US.

The financial stakes for Tesla are absolutely immense. In 2024, Tesla generated $2.76 billion from selling these credits. This high-margin revenue was the sole reason Tesla posted a profit in Q1 2025; without the $595 million from regulatory credits, Tesla’s reported $409 million in profit would have been a $189 million loss.

How the ZEV Credit System Works

Zero-Emission Vehicle (ZEV) credits are part of state-level programs, led by California, designed to accelerate the adoption of electric vehicles. Each year, automakers are required to hold a certain number of ZEV credits, with the amount based on their total vehicle sales within that state. Under this system, automakers that fail to sell a certain percentage of zero-emission vehicles must either pay a significant fine or purchase credits from a company that exceeds the mandate.

Automakers who fail to sell enough EVs to meet their quota have a deficit and face two choices: pay a hefty fine to the state government for each missing credit (for example, $5,000 per credit in California) or buy credits from a company with a surplus.

As an all-EV company, Tesla generates a massive surplus of these credits. It can then turn around and sell them to legacy automakers at prices cheaper than the fine, creating a win-win scenario: the legacy automaker avoids a larger penalty, and Tesla gains a lucrative, near-pure-profit revenue stream. 

This new bill will dismantle this by eliminating the financial penalties for non-compliance, which would effectively make Tesla’s credits worthless. While the ZEV program is a state law, the Big Beautiful Bill will fully eliminate the penalties at a federal level.

A Multi-Billion Dollar Impact

The removal of US ZEGV credits would be a severe blow to Tesla’s financials. One JPMorgan analyst estimated that the move could reduce Tesla’s earnings by over 50%, representing a potential annual loss of $2 billion. While Tesla also earns similar credits in Europe and China, analysts suggest that 80-90% of its credit revenue in Q1 2025 came from US programs. 

Why the Program Exists

While the impact on Tesla would be direct and immediate, the credit system has a wider purpose. It creates a strong financial incentive for legacy automakers to develop and accelerate their zero-emission vehicle programs, whether it’s hydrogen, electric, or another alternative.

Eliminating the need for these credits would remove that financial pressure. This could allow traditional automakers to slow their EV transition in the US without the fear of a financial penalty, potentially leading to fewer EV choices for consumers and a slower path to vehicle electrification in the country.

Big, But Not Beautiful

On Sunday Morning TV, Elon Musk was asked his thoughts on the Big Beautiful Bill. They were pretty simple. A bill could be big, or it could be beautiful - I don’t know if it can be both, Musk stated.

The bill poses a threat to Tesla’s bottom line and to the adoption of EVs in the US market, where automakers will no longer have a financial incentive to transition to cleaner vehicles, a market they’ve regularly struggled in when competing against Tesla.

Tesla will have to work carefully in the future to cut expenses to remain profitable after the elimination of these regulatory credits.

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