In a recent podcast appearance, Tesla and SpaceX CEO Elon Musk made a light-hearted yet pointed observation about China's aggressive push into the green energy sector, suggesting the nation might be taking cues from his long-standing advocacy.
Musk's 'Joking' Observation on China's Execution
Speaking on the Moonshots podcast, Musk discussed the global energy demands of data centres and the critical role of batteries. He remarked, "It seems like China listens to everything I say, and does it basically or they’re just doing it independently." He elaborated by pointing to China's massive industrial output in areas he has championed for years.
"I don’t know, but they certainly have a massive battery pack output, they’re making a vast number of electric cars, and vast amounts of solar," Musk stated. "These are all the things I said we should do here." His comments underscore a stark reality: China's dominance in scaling the very technologies essential for a sustainable future.
The Data Behind China's Green Tech Dominance
The numbers powerfully back Musk's observation. In 2024 alone, China produced a staggering 13 million electric vehicles, representing a 70% year-over-year growth since 2020. Furthermore, Chinese firms like CATL and BYD command a 69% share of the global EV battery market. On the solar front, Musk has previously warned on X (formerly Twitter) that China's solar power generation is expanding so rapidly it could surpass the entire electricity output of the United States within four years.
Musk's Battery Solution for the AI Era's Power Crisis
When the conversation turned to solving the soaring power needs of artificial intelligence, Musk presented a clear solution: utility-scale batteries. He explained that the United States has a peak power output of around 1.1 terawatts, but average usage is only about half a terawatt.
"So if you just buffer the energy, charge up the batteries at night, discharge during the day without incremental capital expenditures, without building new power plants, you can double the energy throughput of the US," Musk asserted. He emphasized that "the best way to actually increase the energy output per year of the United States or any country is batteries."
Tesla's Megapack: The Hardware for the Solution
The podcast host then asked if such large-scale batteries were under development. "Yeah, Tesla makes them," Musk replied, highlighting the company's Megapack product. The Megapack is a utility-scale battery system designed to stabilize electrical grids and prevent outages by providing reliable energy storage.
Musk's own AI venture, xAI, is utilizing this technology, having installed 168 Megapacks at its data centre in South Memphis, Tennessee. Pushing the envelope further, Tesla introduced the Megablock in September 2025—a grouping of four Megapack 3 units capable of storing 20 megawatt-hours of energy, enough to power approximately 4,000 homes for four hours.
Musk's podcast insights frame a global race for energy resilience. While he jests about China heeding his advice, the underlying message is a serious call for accelerated adoption of battery storage and renewable energy infrastructure worldwide, with Tesla positioning itself as a key hardware provider in this essential transition.
