Tesla’s first overseas energy storage plant starts operating as global competition from Chinese firms and pricing pressures mount.

The opening of the $200 million Megapack battery plant in Shanghai highlights Elon Musk’s unusual position as Tesla CEO and Trump administration adviser.

Tesla's battery megafactory in Shanghai, for manufacturing its megapack batteries, has launched production on Tuesday, Chinese official news agency Xinhua said.

Storyline Tesla's Megafactory in Shanghai begins production of Megapack batteries (Voice_over) Tesla's new Megafactory, which produces energy storage products, officially went into production. The Shanghai facility is Tesla's first Megafactory outside the United States and marks another major investment in China following the Gigafactory Shanghai car manufacturing plant.

U.S. carmaker Tesla's new Megafactory in Shanghai, dedicated to manufacturing energy-storage batteries known as Megapacks, launched production on Tuesday, marking a significant expansion of the company's presence in China.

Tesla (NASDAQ: TSLA) has officially started production at its Shanghai battery megafactory, dedicated to manufacturing its high-capacity Megapack energy storage systems, according to Chinas state news agency,