Sunday, June 22, 2025
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Massive COVID Fund Fraud Occurred Kamala’s VP Pick, Gov. Tim Walz.

Dozens of Somali immigrants are involved in the largest COVID-19 fraud case in the United States, which saw the fraudsters net over $250 million in Governor Tim Walz’s Minnesota. A total of 47 Somali immigrants in Minneapolis, Minnesota, stand accused of embezzling $250 million in federal aid in the North Star State, run by Democratic presidential nominee Kamala Harris’s running mate. He has previously praised the Somali community in Minnesota, arguing they contribute to the state culturally and demographically.

The Feeding Our Future organization misappropriated funds intended for children and families affected by the pandemic, diverting them towards personal luxuries, real estate, and other non-essential purchases. State auditors released 16 separate reports highlighting a pattern of fraud under Governor Walz’s administration. Criticism has emerged over the Minnesota Department of Education’s oversight failures, with audits indicating officials ignored warning signs and vulnerabilities facilitating the fraud.

Governor Walz claimed that the fraud had been detected early and credited his administration for initiating corrective measures and prosecutions. However, Republican House Minority Leader Lisa Demuth questioned why no one from Walz’s team had faced any consequences despite numerous negative audit findings.

“When he is not holding any commissioners responsible, then yes, Gov. Walz is responsible for the fraud that has been ongoing in the state of Minnesota,” she argues.

A state audit pointed to a “culture of unaccountability” within agencies led by Walz’s appointees. Additionally, a judge recently admonished Walz for making misleading statements regarding the state’s handling of the scandal, potentially inflaming the ongoing legal proceedings related to Feeding Our Future.

The Governor and his officials have also been accused of “cooking the books” regarding teachers’ pensions, and hiding the extent of fees paid to Wall Street fund managers.

By Popular Demand.
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More From The Pulse

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IN FULL: Trump Addresses the Nation on Iran Strikes.

President Donald J. Trump addressed the nation overnight on the U.S. strikes against Iran’s nuclear facilities. Here are his remarks in full:

THE PRESIDENT: Thank you very much.

A short time ago, the U.S. military carried out massive, precision strikes on the three key nuclear facilities in the Iranian regime. Fordo, Natanz and Esfahan. Everybody heard those names for years as they built this horribly destructive enterprise.

Our objective was the destruction of Iran’s nuclear enrichment capacity and a stop to the nuclear threat posed by the world’s number one state sponsor of terror.

Tonight, I can report to the world that the strikes were a spectacular military success. Iran’s key nuclear enrichment facilities have been completely and totally obliterated. Iran, the bully of the Middle East, must now make peace. If they do not. Future attacks would be far greater and a lot easier.

For 40 years, Iran has been saying. Death to America, death to Israel. They have been killing our people, blowing off their arms, blowing off their legs, with roadside bombs. That was their specialty. We lost over 1,000 people and hundreds of thousands throughout the Middle East, and around the world have died as a direct result of their hate in particular. So many were killed by their general, Qassim Soleimani. I decided a long time ago that I would not let this happen. It will not continue.

I want to thank and congratulate Prime Minister Bibi Netanyahu. We worked as a team like perhaps no team has ever worked before, and we’ve gone a long way to erasing this horrible threat to Israel. I want to thank the Israeli military for the wonderful job they’ve done. And most importantly, I want to congratulate the great American patriots who flew those magnificent machines tonight, and all of the United States military on an operation the likes of which the world has not seen in many, many decades.

Hopefully, we will no longer need their services in this capacity. I hope that’s so. I also want to congratulate the chairman of the Joint Chiefs of Staff, General Dan ‘Razin’ Caine, spectacular general, and all of the brilliant military minds involved in this attack.

With all of that being said, this cannot continue. There will be either peace, or there will be tragedy for Iran, far greater than we have witnessed over the last eight days. Remember, there are many targets left. Tonight’s was the most difficult of them all, by far, and perhaps the most lethal. But if peace does not come quickly, we will go after those other targets with precision, speed and skill. Most of them can be taken out in a matter of minutes. There’s no military in the world that could have done what we did tonight. Not even close. There has never been a military that could do what took place just a little while ago.

Tomorrow, General Caine, Secretary of Defense Pete Hegseth will have a press conference at 8 a.m. at the Pentagon. And I want to just thank everybody. And, in particular, God. I want to just say, we love you, God, and we love our great military. Protect them. God bless the Middle East. God bless Israel and God bless America. Thank you very much. Thank you.

WATCH:

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President Donald J. Trump addressed the nation overnight on the U.S. strikes against Iran's nuclear facilities. Here are his remarks in full: show more
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Trump Strikes Iran in B2 Bomber Raid, Will Address Nation TONIGHT.

PULSE POINTS

WHAT HAPPENED: Donald Trump announced a successful strike on three nuclear sites in Iran, declaring the mission complete and calling for peace.

👤WHO WAS INVOLVED: President Donald J. Trump, U.S. military forces, and Iranian nuclear facilities at Fordow, Natanz, and Esfahan.

📍WHEN & WHERE: Location: Iran; Sites targeted include Fordow, Natanz, and Esfahan; Timing not independently confirmed.

💬KEY QUOTE: “NOW IS THE TIME FOR PEACE! Thank you for your attention to this matter.” – Donald Trump

🎯IMPACT: The statement signals a major escalation in U.S.–Iran tensions and a call for post-strike diplomacy.

A Truth Social post attributed to U.S. President Donald J. Trump announced a direct American military strike on three nuclear sites in Iran: Fordow, Natanz, and Esfahan. The post claims a “very successful attack” involving a full payload of bombs, particularly on the Fordow facility, with all aircraft safely returned.

Initial reports suggest American B2 bombers were used in the raid, with open source intel accounts posting about how Fordow is “gone.”

The President is expected to address the nation at 10PM EST.

it is believed the U.S. dropped up to six bunker buster bombs on Fordow, and used around 30 Tomahawk missiles on other Iranian nuclear sites, according to sources talking to Fox News.

Trump’s message hails American forces as unmatched globally and suggests the operation was not only successful but also a trigger point to call for global peace. He concluded the message with: “NOW IS THE TIME FOR PEACE!” signaling a pivot toward de-escalation following the apparent aggression.

The claim marks a dramatic escalation in American military posture toward Iran and could reignite regional tensions not seen since the Soleimani strike in 2020. The facilities named are key components of Iran’s nuclear infrastructure, long viewed as potential flashpoints by Washington and its allies.

This is a developing story.

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UN Nuclear Watchdog Warns Strikes on Iranian Reactors Could Cause Catastrophic Meltdowns.

PULSE POINTS

WHAT HAPPENED: At a United Nations (UN) Security Council meeting, International Atomic Energy Agency (IAEA) chief Rafael Grossi warned that an Israeli strike on Iran’s Bushehr nuclear plant could trigger catastrophic radioactive fallout.

👤WHO WAS INVOLVED: Rafael Grossi, the IAEA, the UN Security Council, Israel, and Iran.

📍WHEN & WHERE: New York City, June 2025

💬KEY QUOTE: “[A] hit that disabled the only two lines supplying electrical power to the plant could cause its reactor’s core to melt, which could result in a high release of radioactivity to the environment.” – Rafael Grossi

🎯IMPACT: A strike on Bushehr could unleash a regional humanitarian disaster and displace thousands.

IN FULL

Rafael Grossi, Director General of the International Atomic Energy Agency (IAEA), warned of the severe consequences of a potential strike on Iranian nuclear reactors at a meeting with the United Nations (UN) Security Council on Friday. He emphasized that the biggest concern is the Bushehr nuclear power plant.

“[Bushehr] is the nuclear site in Iran where the consequences of an attack would be the most serious,” Grossi said, explaining that “a direct hit could result in a very high release of radioactivity to the environment.”

“Similarly, a hit that disabled the only two lines supplying electrical power to the plant could cause its reactor’s core to melt, which could result in a high release of radioactivity to the environment,” he added.

Israel continues to hit facilities allegedly tied to Tehran’s plan to build a nuclear bomb, but has yet to strike at Bushehr. Iran has claimed they are not seeking to build a nuclear bomb, and the nuclear program is for civilian energy. However, Iran’s level of enriched uranium exceeds civilian energy needs and is close to achieving enough for a nuclear weapon. Grossi himself previously warned that around 90 percent of Iran’s enriched uranium is weapons-grade.

If there is an attack on the Bushehr nuclear power plant, an extremely high level of radioactivity could be released into the environment. Similarly, Grossi warned that attacks on a nuclear research reactor in the capital of Tehran, with a population of around ten million, “would also have severe consequences potentially for large areas of the city… and its inhabitants.”

These dangerous scenarios would require extensive protective measures to be taken, such as mass evacuations, sheltering populations, and even “the need to take stable iodine” supplements to counteract possible radiation sickness.

The IAEA continues to monitor radiation levels in and around Iran’s nuclear facilities. So far, there are facilities in Iran reporting damage due to Israeli strikes in Arak, Esfahan, Natanz, and Tehran.

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DATA: Service Workers Back No Tax on Tips Plan in Trump’s ‘Big Beautiful Bill.’

PULSE POINTS

WHAT HAPPENED: Hourly workers in service, hospitality, and retail industries overwhelmingly support President Donald J. Trump’s No Tax on Tips plan, according to a new survey.

👤WHO WAS INVOLVED: President Donald J. Trump, hourly workers, and the authors of the survey report.

📍WHEN & WHERE: Survey results published recently, with workers across the United States voicing their support.

💬KEY QUOTE: “I don’t know what the holdup is. I don’t know what the politics are, but if we can cut the BS now … it can help out a lot of people.” – Nevada food service worker.

🎯IMPACT: The plan aims to provide financial stability and relief for hourly workers, while being part of a broader economic agenda under Trump’s leadership.

IN FULL

Hourly workers in the service, hospitality, and retail industries overwhelmingly back President Donald J. Trump’s No Tax On Tips plan in the “One Big Beautiful Bill,” according to a new survey, saying tax-free tips would bring them needed financial stability and relief. According to the data, 83 percent of hourly workers want to see No Tax on Tips become law, with just four percent saying otherwise.

“These results suggest that any measure increasing the amount of immediately available income—such as untaxed tips—would provide meaningful, stabilizing support for a large segment of the hourly workforce,” the report, published by the earned wage payroll company Instant, states. As one Nevada food service worker put it: “I don’t know what the holdup is. I don’t know what the politics are, but if we can cut the BS now … it can help out a lot of people.”

Currently, the “One Big Beautiful Bill”—in the form of budget reconciliation legislation—is undergoing changes in the U.S. Senate after being adopted by the House of Representatives last month. While senators are making substantive changes to the bill’s Medicaid provisions, tax provisions like No Tax on Tips, No Tax on Overtime, and No Tax on Social Security are not expected to be altered from the House version.

The National Pulse has previously reported that President Trump has overseen the largest increase in blue-collar wage growth in 60 years. Blue-collar workers have experienced a 1.7 percent real wage increase in the first five months of Trump’s second term. The wage growth sharply contrasts with the negative growth experienced under former President Joe Biden.

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By Popular Demand.
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China Spying

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This Former Soldier Was Caught Selling Military Secrets to China.

PULSE POINTS

WHAT HAPPENED: A former U.S. Army Sergeant pleaded guilty to attempting to provide military secrets to China and faces up to ten years in prison.

👤WHO WAS INVOLVED: Joseph Daniel Schmidt, 31, a former Army Sergeant, along with the Federal Bureau of Investigation (FBI) and the U.S. Department of Justice (DOJ).

📍WHEN & WHERE: Schmidt was stationed at Joint Base Lewis-McChord from 2015 to 2020. He was arrested in San Francisco in October 2023 after returning from Hong Kong.

💬KEY QUOTE: “Joseph Daniel Schmidt was once a trusted guardian of our nation’s secrets and swore an oath to defend and protect U.S. national security,” said FBI Assistant Director Suzanne Turner.

🎯IMPACT: Schmidt’s actions highlight the enticements for current and former U.S. military personnel and others to spy for the Chinese Communist Party (CCP).

IN FULL

Joseph Daniel Schmidt, a 31-year-old former U.S. Army Sergeant, pleaded guilty to charges of attempting to deliver national defense information to China and retention of national defense information. Schmidt, who served from 2015 to 2020, was stationed at Joint Base Lewis-McChord in Washington. He is set to be sentenced in September and faces up to ten years in prison, along with a potential $250,000 fine.

According to the Justice Department, Schmidt had access to secret and top-secret defense information during his service with the 109th Military Intelligence Battalion. After leaving the military in January 2020, Schmidt contacted the Chinese Consulate in Turkey and Chinese security services, offering to provide national defense information.

In March 2020, Schmidt traveled to Hong Kong, where he attempted to hand over intelligence and a device capable of accessing secure military computers to Chinese security officials. He returned to the U.S. in October 2023 and was arrested in San Francisco.

“Joseph Daniel Schmidt was once a trusted guardian of our nation’s secrets and swore an oath to defend and protect U.S. national security,” said Assistant Director Suzanne Turner of the Federal Bureau of Investigation’s (FBI) Counterintelligence Division. “As alleged by the government, Schmidt betrayed his promise and potentially placed our nation at risk in his attempts to pass national defense information to Chinese security services.”

This case is part of a broader pattern of Chinese espionage attempts targeting U.S. military secrets. Earlier this year, former Army intelligence officer Korbein Schultz was sentenced to seven years in prison for selling sensitive military documents to an individual linked to China. Additionally, in September, three individuals, including two active-duty soldiers, were charged with stealing top-secret military information to sell to Chinese agents.

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House Democrats Are Still Trying to Give Citizenship to 11 Million Illegals.

PULSE POINTS

WHAT HAPPENED: Representative Maxwell Alejandro Frost (D-FL) is lobbying for a pathway to citizenship for all illegal immigrants in the U.S.

👤WHO WAS INVOLVED: Representative Maxwell Frost, Speaker of the House Mike Johnson (R-LA), Representative Brandon Gill (R-TX), and other lawmakers.

📍WHEN & WHERE: June 2025, at a press conference in Orlando, Florida.

💬KEY QUOTE: “I want to be clear, being undocumented [sic] is not a crime… Let’s document every single one of them with a speedy path to citizenship.” – Maxwell Frost

🎯IMPACT: The proposal has sparked backlash from Republican lawmakers, who have labeled it a “dangerous idea” and vowed to oppose it, and underlined Democrats’ ongoing support for open borders.

IN FULL

Democrat Representative Maxwell Frost (D-FL) has called for a pathway to citizenship for as many as 11 million illegal immigrants in the United States, stating that “we should document every single one of them.” Frost, the son of a Haitian migrant and a Lebanese-descended Puerto Rican, made the announcement during a press conference in Orlando, Florida, where he also unveiled the anti-deportation Stop Unlawful Detention and End Mistreatment Act (SUDEM) bill.

The SUDEM Act aims to provide detainees, their families, and legal representatives with detailed information about detention locations, reasons, and the legal authority behind each case, tying up federal immigration officials in red tape. Frost bizarrely claimed that being an illegal immigrant “is not a crime” and advocated for a “speedy path to citizenship” as a supposed solution to the issue of illegal immigrants in the U.S.

Republican lawmakers criticized the proposal, with Speaker of the House Mike Johnson (R-LA) describing it as “blanket amnesty” and a “dangerous idea.” Johnson stated on X (formerly Twitter), “We must defend common sense and the rule of law.” Texas Representative Brandon Gill also weighed in, accusing Democrats of pushing mass amnesty to “rig congressional apportionment in their favor.”

While Frost remains committed to advancing his legislation and plans to seek co-sponsors in Washington, D.C., the bill is unlikely to gain traction in the Republican-controlled House of Representatives. He has some support outside Congress, however, with far-left Late Show host Stephen Colbert inviting him on his show to promote the SUDEM bill and accuse ICE agents of kidnapping and human trafficking.

Immigration has been a key focus of President Donald J. Trump‘s policy agenda, with plans for increased border security, expanded deportations, and an end to federal benefits for illegal immigrants. Frost’s proposal comes amid heightened tensions over immigration enforcement, including violent protests and riots against recent ICE raids and legal challenges to the administration’s use of the Alien Enemies Act of 1798 to expedite deportations.

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Zelensky Demands $40 Billion a Year.

PULSE POINTS

WHAT HAPPENED: Ukrainian President Volodymyr Zelensky has demanded $40 billion annually in Western aid and urged additional pressure on Moscow from the Trump administration.

👤WHO WAS INVOLVED: Ukrainian President Volodymyr Zelensky, U.S. President Donald Trump, Russian President Vladimir Putin, and G7 leaders.

📍WHEN & WHERE: Statements were made this week following the G7 summit in Canada.

💬KEY QUOTE: “It’s crucial to have $40 billion annually in budgetary support for Ukraine—to ensure our resilience and the ability of our country to carry on. This should be a joint decision by G7 leaders, including the U.S.” – Volodymyr Zelensky.

🎯IMPACT: Zelensky’s continued calls for Western financial and military support highlight an ongoing reluctance to seriously engage with the idea of a compromise peace.

IN FULL

Ukrainian President Volodymyr Zelensky has urged Western allies to provide at least $40 billion annually to support Ukraine’s fight against Russia. Zelensky also called for increased pressure from the Trump administration on Moscow to end the conflict.

Zelensky missed an opportunity to meet with President J. Donald Trump, as the American leader, cut short his trip to the G7 summit in Canada earlier this week. The Ukrainian government had sought to secure additional commitments for weapons and support from the United States as Ukraine faces stalled negotiations and escalating challenges on the frontlines.

Zelensky highlighted the need for sustained financial aid on social media. “It’s crucial to have $40 billion annually in budgetary support for Ukraine—to ensure our resilience and the ability of our country to carry on,” he said. “This should be a joint decision by G7 leaders, including the U.S.”

Zelensky also called on Western powers to “continue urging President Trump to use the influence he really has—to force Putin to end this war.” Since the Russian invasion in 2022, the United States has allocated $184.8 billion in aid to Ukraine, with $89.5 billion already distributed.

The conflict remains intense, with both sides launching significant attacks. Russia has demanded that Ukraine withdraw from several claimed regions. At the same time, Kiev insists on an unconditional ceasefire and refuses to cede any territory, including Crimea, which is majority Russian and has been in Russian hands since 2014.

Image via the Presidency of Ukraine.

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Gay Africans Are Blaming Trump for Their HIV.

PULSE POINTS

WHAT HAPPENED: Gay men in African nations have blamed difficulties accessing HIV prevention medication on foreign aid cuts enacted by the Trump administration, rather than African governments or their own behavior.

👤WHO WAS INVOLVED: President Donald J. Trump, Secretary of State Marco Rubio, Russell Vought, public health officials, gay Africans, and African governments.

📍WHEN & WHERE: Since President Trump’s inauguration, with impacts felt in countries like Nigeria, South Africa, and Ethiopia.

💬KEY QUOTE: “I equally blame the Trump administration because, you know, these things were available, and then, without prior notice, these things were cut off.” – Emmanuel Cherem, Nigerian citizen.

🎯IMPACT: If gay African men are unwilling to change their behavior, African governments, the African Union, and liberal governments in the European Union (EU), Canada, and elsewhere might have to step up to fund the medication, instead of relying on American taxpayers.

IN FULL

Gay men in African nations are claiming increased HIV diagnoses due to the Trump administration’s decision to cut foreign aid funding, particularly for HIV/AIDS prevention programs, rather than their own risky sexual behavior. The cuts have allegedly limited access to medications such as Pre-Exposure Prophylaxis (PrEP), which reduces the risk of contracting HIV by 99 percent, though it remains unclear why African countries or the African Union have not funded the drug themselves.

Emmanuel Cherem, a 25-year-old from Nigeria, an oil-rich state and one of Africa’s largest economies, stated that he tested positive for HIV two months after losing access to the drug. “I blame myself [but] I equally blame the Trump administration because, you know, these things were available, and then, without prior notice, these things were cut off.” He did not explain why American taxpayers should have a particular responsibility to stop him from catching HIV.

The Trump administration paused foreign development assistance on the President’s first day in office, with Secretary of State Marco Rubio issuing a “stop work order” for the State Department’s Office of Foreign Assistance. Programs like the President’s Emergency Plan for AIDS Relief (PEPFAR) saw significant funding reductions, with prevention efforts now focused on pregnant and lactating women who may pass HIV to their children. LGBT individuals unwilling to take precautions and prostitutes are no longer a main focus.

During a visit by South African President Cyril Ramaphosa, President Donald J. Trump defended the cuts, stating, “Hopefully a lot of people are going to start spending a lot of money. I’ve talked to other nations. We want them to chip in and spend money too, and we’ve spent a lot. And it’s a big—it’s a tremendous problem going on in many countries.”

Public health officials, including Linda-Gail Bekker of the University of Cape Town, have expressed concerns that African nations may not be able to fill the funding gap, potentially leading to increased HIV transmission rates. UNAIDS has noted that countries like Malawi, Zimbabwe, and Mozambique were heavily reliant on U.S. funding for HIV prevention measures—though all fall under the umbrella of the African Union, and it is unclear why other relatively wealthy nations in Europe, the Middle East, and elsewhere could not fund the measures instead of America.

Image by Samantha Marx.

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These FBI Emails Prove Biden DOJ Targeted Trump Over J6 Choir.

PULSE POINTS

WHAT HAPPENED: Internal Federal Bureau of Investigation (FBI) emails revealed the Biden Justice Department’s effort to target President Donald J. Trump over a January 6 defendant choir.

👤WHO WAS INVOLVED: Department of Justice (DOJ) prosecutor J.P. Cooney, FBI Special Agent Walter Giardina, Senator Chuck Grassley (R-IA), and President Donald J. Trump.

📍WHEN & WHERE: March 2023, emails were obtained in June 2025 and reviewed by Senator Grassley in Washington, D.C.

💬KEY QUOTE: “Can we do some work to nail down Trump’s role in this,” wrote JP Cooney in an email to DOJ colleagues.

🎯IMPACT: Senator Grassley called it a “clear example” of the federal government weaponizing the DOJ against Trump.

IN FULL

Internal Federal Bureau of Investigation (FBI) emails obtained by Senator Chuck Grassley (R-IA) have revealed that the Joe Biden-era Department of Justice (DOJ) targeted President Donald J. Trump over a choir involving January 6 defendants. The emails show what was described as an “obsession with piling on Trump charges.”

An email from March 8, 2023, written by DOJ prosecutor J.P. Cooney, stated, “Can we do some work to nail down Trump’s role in this,” with the subject line “J6 Prisoner Choir/DJT.” The email included a Forbes article reporting that Trump collaborated on a song with January 6 defendants. Cooney noted that Trump recorded the Pledge of Allegiance at Mar-a-Lago, with Kash Patel and Ed Henry also involved.

Cooney’s email also mentioned that profits from the song were directed to an LLC run by Ed Henry, with proceeds intended for the families of incarcerated January 6 defendants. Cooney instructed DOJ colleagues to preserve related information and investigate Trump’s role further. The email was sent to eight DOJ staff members, including FBI Special Agent Walter Giardina.

Grassley highlighted Giardina’s involvement in what he called “overzealous” actions against Trump and his allies, including the investigation of Trump advisor Peter Navarro and Giardina’s role in the now-debunked Russia collusion hoax. Grassley stated that Giardina was the “initial recipient of the Steele Dossier” and accused him of improperly destroying government records while working for Special Counsel Robert Mueller.

Grassley criticized the DOJ and FBI, saying, “Instead of focusing on DOJ and FBI’s core law enforcement responsibilities, partisan prosecutors and agents were surfing the web to find any shred of information they could use to spin another baseless case against Trump. Their actions are a disservice to Americans, who pay their salaries and depend on DOJ and FBI to keep them safe.”

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Elon Musk Is Building a Massive Battery Plant for Communist China.

PULSE POINTS

WHAT HAPPENED: Tesla has signed a deal to construct its first grid-scale battery power plant in China, resurfacing concerns regarding Tesla CEO Elon Musk’s ties to the Chinese Communist Party (CCP).

👤WHO WAS INVOLVED: Tesla, the Chinese Communist Party (CCP), and China Kangfu International Leasing.

📍WHEN & WHERE: Project announced recently; it will be based in Shanghai, China.

💬KEY QUOTE: “After completion, this project is expected to become the largest grid-side energy storage project in China,” Tesla stated on the Chinese-controlled social media platform Weibo.

🎯IMPACT: The project highlights Tesla’s expansion into China’s energy storage market amid increasing geopolitical tensions between the United States and the CCP.

IN FULL

Elon Musk’s Tesla firm has secured its first deal to construct a grid-scale battery power plant in the People’s Republic of China, which will, upon completion, become the largest of its kind in the country. The company made the announcement on the Chinese Communist Party (CCP)-controlled social media platform Weibo, where Tesla highlighted the project’s potential impact on urban power supply.

The agreement, valued at four billion yuan ($556 million), was signed by Tesla, the local government of Shanghai, and China Kangfu International Leasing, according to Chinese media outlet Yicai. Tesla’s Shanghai factory has already produced over 100 Megapacks in the first quarter of this year, with each Megapack capable of delivering up to one megawatt of power for four hours.

In a statement on Weibo, Tesla described the grid-side energy storage power station as a “smart regulator” for urban electricity, capable of flexibly adjusting grid resources. “After completion, this project is expected to become the largest grid-side energy storage project in China,” Tesla stated, adding that the project would “effectively solve the pressure of urban power supply and ensure the safe, stable, and efficient electricity demand of the city.”

China’s CATL and carmaker BYD, both competitors in the battery market, have made substantial progress in battery development and manufacturing, with CATL holding approximately 40 percent of the global market share. Notably, CATL is also expected to supply battery cells and packs for Tesla’s Megapacks.

The deal comes amid strained trade relations between Beijing and Washington. The agreement also brings additional scrutiny on Elon Musk, who has long been criticized for his business ties to the CCP. Shortly after Musk was tapped as a special government employee to help advise the U.S. Department of Government Efficiency (DOGE), his companies saw a flood of Chinese investors, raising concerns about the possibility of foreign influence over the technology billionaire.

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