Base Power Company: Chapter 3

Summary

Base Power Company: Chapter 3 Manufacturing the Capability Cannon Welcome to the 2,538 newly Not Boring people who have joined us since our last essay! Join 275,867 smart, curious folks by subscribing here: Hi friends 👋 , There are only two companies on which I’ve written multiple Deep Dives. The first is Ramp, which I first wrote about when it was [valued at $300million](https://www.notboring.co/p/ramp-the-card-sized-finance-team),thenagainwhenitwas[valuedat$1 (and $1.6)billion](https://www.notboring.co/p/ramps-double-unicorn-rounds-behind),andthen[multiple](https://www.notboring.co/p/ramping-up)[times](https://www.notboring.co/p/ramp-and-the-ai-opportunity)[since](https://www.notboring.co/p/ramp-at-1-billion).Today,itisvaluedat$44 billion. The second is Base Power Company, which I first wrote about when it was valued at $300million([Chapter1](https://www.notboring.co/p/base-power-company)),thenagainwhenitwasvaluedat$1 billion (Chapter 2). Today, the company is announcing that it has raised $1billionata$12 billion pre-money valuation, bringing its valuation to $13billion.IntheintrotothelastRamppiece,[Rampat$1 Billion](https://www.notboring.co/p/ramp-at-1-billion), I wrote that “One of my goals for this newsletter (and Not Boring Capital) is to find a handful of generational companies as early as possible, write their story in chapters over time, and then publish the whole thing as a book when they IPO.” That is certainly my aim with Base Power Company, which I’ve both invested in and plan to keep writing about through and beyond IPO. This is the third chapter in the Book of Base. There will be many more to come. If you want to help write the Base Story, and I think you should, because I think it’s going to be one of the most important of our generation, my advice is to get yourself on the next flight down to Austin and join them. Let’s get to it. One Friday night earlier this summer, Base Power Company CEO Zach Dell and Ribbit Capital founder Micky Malka agreed to terms on a $1billionSeriesData$13 billion post-money valuation. By Saturday, the round, co-led by Ribbit, Valor Equity Partners, Addition, and JPMorganChase’s Strategic Investment Group, was fully subscribed. By Sunday, it was multiples oversubscribed. $13billionis,tobesure,aheftypricetagforatoddler,nomatterhowprecocious.Baseislessthanthreeyearsold,anditisnowthesecondmostvaluableenergystartupintheworld,behindHelion,andthemostvaluablethatissellingaproducttoday.Itisabet,Ithink,thatBasecanbecomethelargestenergycompanyintheworld.Thatseemscrazy,Iknow,butit’sbeenmyworkingthesisforawhile-thatBasehastheopportunitytodotoenergywhatSpaceXdidtospace,whatAndurilisdoingtodefense-namely,winalarge,old,incumbent-dominatedmarket.It’salsothecompany’sambition.LastNovember,beforeBasehaddecidedtoexpandtoChicago,beforeithadproduceditsfirstBaseCore,ZachcametoNewYorktodoafiresideatThriveCapital’soffice.Aftertheconversation,wewerechattingwithasmallgroupandsomeoneaskedwhethertherewasstillupsideingoingtoworkatBase,towhichZachreplied,“Basecanbecomea$400 billion company.” It was offhand and automatic, but what struck me was that Base had just closed a $1billionroundthemonthbeforethatvaluedthecompanyat$4 billion. As the valuation grew, the ambition did too, at exactly a 100:1 ratio. I suspect no matter how highly valued Base becomes, the goal will always be 100x higher. When we caught up last week, I asked Zach about that conversation at Thrive, and whether now that investors had valued the company at $13billion,inhismind,Basewasnowa$1.3 trillion company in the limit. He didn’t remember saying $400billionatThrive,andsaidthathedoesn’tnecessarilythinkaboutitthatway\dots beforelayingoutexactlyhowitcouldhappen:Ithinkaboutitmoreintermsofthescope,thesize,thetotalopportunity,andhowbigapartoftheenergymarketwecanbe.Atrilliondollarcompanyisprettybigtoday.Idon’tthinkit’llbethatbigin10years.SoImeanifyoubelievethatenergyisgoingtoremainoneoftheworld’slargestindustries,orevengetbiggerasapercentageoftotalGDP,andyoulookatallthelargestenergycompaniesinthemarket,youstackrankthembymarketcapandyoustareatitandyousay,‘Whichoneofthesecanbetrilliondollarmarketcaps?Andyouthinkokaytheremightbeoneortwoinhere.’Andthenyoulookatthatlistandyou’relike,‘DowethinkBaseisgoingtocrackthislist?Andwhereonitdowethinktheywillbe?’IthinkwewillcrackthatlistandIthinkwecanbenearthetopovertime.Ithinkwewillbeatthetop.So.Biggestindustryintheworld.Wewanttowinit.Youtellmehowbigthatwouldbe.Energyisanenormousindustry,andarguablytheworld’smostimportant.Itsitsatthebaseofeverything.Theworld’slargestenergycompanytoday,SaudiAramco,isworth$1.7 trillion. Exxon Mobil is second at $650billion,acooltrilliondollarsless.Whatisremarkableabouttheenergyindustry,though,isthatthereare18energycompaniesworthmorethan$100 billion, and 55 worth more than $50billion.Atitscurrent$13 billion valuation, Base would rank 182nd among publicly traded energy companies, between China’s COSCO Shipping Energy and Norway’s Vår Energi. This is a top-down view of the situation, basically just confirming that it is indeed very possible to build a very large energy company. What’s notable about the list, though, is just how old the companies on it are. These companies were largely built around the winning assets of the previous energy system: oil fields, refineries, pipelines, tankers, centralized generation, poles, and wires. The energy transition that’s been underway has already created new bottlenecks – the grid struggles matching variable supply with unpredictable demand, for example – and therefore new valuable positions. Then the most ravenous consumer of electrons in history entered the market in the form of data centers. If a new energy winner is going to be born, now would seem to be the time. The question is: how? In an industry dominated by well-established and literally well-resourced companies, how might a new entrant break into the top group, or even take the top spot? This is the question I tackled in Power in the Age of Intelligence in February. My hypothesis was that a company needs to identify the constraint holding its industry back and focus everything on breaking it in order to win the High Ground with a scarce, defensible asset. Then, use that position and its capabilities to integrate outward. This is what Standard Oil did, and Ford Motor Company, Carnegie Steel, and Swift Meats. The case study I used to show this idea in motion was, of course, Base Power Company. Base picked the right energy bottleneck - the grid - and the right technology to unblock it - batteries. They picked the right place to put the batteries, right next to homes, in the right starting state, Texas. They vertically integrated, assembled the right team to own each chunk it bit off, and got to work. “In 2023,” Zach told me, “we had this very opinionated view that batteries were this unique unlock to scaling energy consumption. And we thought that in a commodity business where cost is everything, to win, you had to vertically integrate and you had to leverage technology, because you needed to combine those things to get a structural advantage.” With Base Core, Base has won the High Ground: the ability to make the cheapest residential battery and deploy a growing network of them in the most valuable place on the grid, next to homes, starting in Texas, the state where batteries currently make the most sense. Owning the High Ground doesn’t mean Base has won, of course. Not even close. The High Ground is simply a strategically advantageous position from which to attack (“Job’s nowhere near finished,” Zach confirmed). What it means, though, is that it will be a lot harder for any new entrant, or even any incumbent, to try to attack the bottleneck in the way that Base has, or to try to beat Base at its own game. Their customers will be harder to acquire, their electrons more expensive, and their ability to impact the grid less sophisticated. As important as the position itself is what Base has learned capturing it. “Our first three years were basically learning a bunch of hard lessons about how to scale, build a brand, build a team, raise capital, manufacture and design products, optimize the supply chain, and the output of all of that is Base Core,” Zach said. Base’s young life has been a process of figuring out how to do a really hard thing, earning the right to make it a company capability, using it and other capabilities to do the next really hard thing, and turning that into a capability, too. Collectively, Zach calls all the things Base has learned to do its “Capability Cannon”: the deployments and engineering and electrical services and manufacturing and brand and balance sheet and policy chops that Base has earned along the way. The Capability Cannon is the most important thing Base builds, more important than any single product, as long as the opportunity ahead remains larger than its past accomplishments, which it should for a long time. Base can point its Cannon at the next opportunities it attacks. It is already pointing it at new geographies and new customer types. When we last saw Base, in Chapter 2, they operated in one state. Now they’re in two, having launched Illinois in June. Back then, fifteen months ago, its regulated utility business existed as one pilot. Last month, more than 50% of its installs were on regulated utility customers’ homes for the first time. It learns lessons from these expansions, too, and it will apply them to the next state and the next utility, and the ones after that, until there’s a Base Core on homes in every state, every neighborhood, and maybe even in foreign countries, too. It can also point the Cannon at new products, and at the AI infrastructure buildout. The way Zach sees it, there are four things you can do with power: you can make it, move it, store it, and sell it. Make, Move, Store, Sell. “There are massive opportunities across the whole stack,” he explained to me. “You think about the stack and power, it’s really four things: you have to make it (generation), you have to move it (transmission and distribution), you have to store it (batteries) and you have to sell it (retail and wholesale markets).” A couple of the other people on the team mentioned it too, as in, “Has Zach talked to you about his Make, Move, Store, Sell framework yet?” It seems to be an animating framework. And he shared it with Ribbit, too, which used MMSS as an organizing concept in the Power Letter it published last week. Ribbit took it a step further, actually, applying MMSS to both electrons and intelligence, and grouping “Dam Breakers” by which of those functions they did to which commodity. This is “capture the High Ground and integrate outward” in a picture, and the question is: which squares give you the best starting point from which to expand, and how far? This is why we get out of bed in the morning here at not boring HQ! Maybe they move left and start to Make or Move electrons. That would clearly fit the mission of fixing the grid, and of delivering affordable and reliable power to customers. Zach has hinted at owning generation since the beginning, and both Jared Greene, Base’s Head of Software, and Justin Lopas, its co-founder and COO, have talked about how you can start to integrate backwards into the grid once you own the Base Layer with batteries and software. Maybe, just maybe, they even move down into intelligence to capture some of those blue squares. “There’s a tendency for a company of our scale now to be like, ‘Oh, well we’ve got 500 people now so we can go and do more things,’” Justin told me, when I asked what they might do next, “But I still think - Zach and I talk about this all the time - that focus is extremely key.” Justin Lopas (l) and Zach Dell (r) in Focus Focus on what, though? If what Base sells is batteries next to Texan homes, then any deviation from that - selling batteries outside of Texas when there are so many Texans left, or selling something besides batteries or electrons altogether - might count as a lack of focus. But that’s not what Base sells, what it is building, or where its ambition ends. Base exists to fix the grid and sell affordable, reliable power to those who consume it, and it is building a set of capabilities that it can deploy at the best opportunities to do that. Three years ago, it had a very opinionated view that batteries were the best way to do that, and they nailed it. They nailed the strategy, and they’ve nailed the execution. No one brings batteries online faster, and no one makes batteries that deliver cheaper electrons. “Now,” Zach told me, “it’s time to scale the fuck out of that.” Along the way, they’ve learned a ton about how the industry works, and they’ve earned the knowledge that there are way more opportunities beyond making batteries to store and sell electrons. “And so we’re going to do all of that,” Zach said… “And then we’re going to take that massive Capability Cannon and we’re going to point it at AI.” And we’ll get there, I promise, but all of Base’s best laid plans, up to and including becoming the world’s largest energy company, rely on its ability to build its capabilities, to build the Core and then build outward from there. Which is one of the reasons that Base started manufacturing its own batteries. Manufacturing the Core The plan, when I spoke to Base’s Head of Hardware Dino Sasaridis for Chapter 2, was to not manufacture batteries for a little while. Crawl, then walk, then run. The Gen 1 battery, the one Base has been installing on customers’ homes, was a basically off-the-shelf battery system. Gen 2, he told me, was being designed to Base’s requirements and manufactured by partners (one battery partner, and two inverter partners). That was the focus at the time of writing. Then, once they’d worked out the kinks, they’d make the battery they really wanted to make, Gen 3, the vertically integrated, Made in Texas, absolute best battery in the world. Gen 3 is why Dino joined Base, after thirteen years at Tesla, where he led mechanical engineering on Powerwall 3. “I decided that whatever I did there I can do it again,” he told me, “and I can do it better here, and then Base Power Company can have the absolute best residential battery in the world. And I think we’re going to easily achieve that, honestly.” “That best residential battery is Base’s Gen 3, which it’s planning for now. Gen 2 is up next, later this year,” is what I wrote then, in April 2025… “Actually, the first time I recommended we cancel Gen 2 was right after I joined [in May 2024],” Dino admitted when we caught up a couple of weeks ago. “And I was like, these suppliers do not care about our success as much as we do. We should not do this.” He actually looked into canceling the contracts then, but for a number of reasons, including the fact that the $15millionincancellationpenaltieswouldeatabigchunkofthemoneyBasehadraised,theycouldn’tgetout.SoheturnedhisfocustomakingGen2asgoodasitcouldbe.TheideaofjustcancelingitkeptnaggingatDino,though,“Becauseattheendofthedayitwasstilljustbuyingaproductfromsomeoneelse,moneytransactedatdayzero.Andthereasonthatendsupbeingaproblem–I’msureI’mthe50thpersontotellyouthistoday–isthatifyoudon’townthestackofthetechnology,you’reabsolutelynotempoweredtofixitwhenitbreaks.”“SoItookahardlookatthedesign,mechanicallyandelectrically,andasked,‘Isthisthinggoingtobreak?’AndIwaslike,‘Yep,it’sprobablygoingtobreak.’ItwasinalotofwaysmorecomplicatedthanourGen1product.”Worse,DinosuspectedthatBasewouldn’tactuallylearnanythingnewfromGen2,whichiswhyyou’deverwastetimewalkingbeforeyouruninthefirstplace.Focusmeansfocusingonthingsthatgrowyourcapabilities,andGen2justwouldn’t.Everythingwaspointinginthesamedirection:Dinohadgottenhimselftoabout80Thenhewentto[ZachDell,Base’sCEO](https://www.linkedin.com/in/zach-dell-a631a554/)andsuggestedthat“Hey,crazyidea,I’velookedintoitforalmostayearandIreallydothinkweshouldcutGen2andjustdoitourselves,”towhichZachrespondedsomethinglike,“Woah,that’sbig,Ineedtothinkaboutthis.”Hedid,andwhentheyspoketwoorthreedayslater,they’dbothwalkeditbackalittle,andtheykindofnervouslylaughed,like“Thatwascrazy,right?”Butyouknowhowthisworks.You’vefeltit.Onceyougetthatfeelinginyourgut,whateverthedetails,theonlythingthatwillresolveitisjustcuttingbait?That’swhereDinowas.Whichiswhy,eventhoughthey’dputthecancellationonpause,Dinokepttalkingtopeopleaboutwhatif.Inaone-on-one,hementionedtoJared,that“Yeah,IwastalkingtoZachabouthowweshouldprobablyjustcancelGen2,butnevermind,that’scrazy.”“AndJaredlookedatmeandsaid,‘OhmyGod,you’reright.WeneedtocancelGen2.’AndIwaslike,wait,amIright?”Andwhetherhewasactuallyrightornot,itping-pongedfromthatconversationtoaleadershipteammeetingwithintheweek,rightaroundApril2025,rightwhentheLiberationDaytariffsmadeitthatmuchmoreattractivetomakeasmuchaspossibleintheUSanyway,atwhichpointBase’sleadersdecided,“Okay,fuck,weneedtodothis.Let’sriptheBand-Aidoff.”OnMay1,rightonscheduleasalways,twoweeksafterI’dpublishedChapter2withafewhundredwordsonthemeritsofGen2,Zachsentoutthemonthlyinvestorupdate.EverythinghadmovedintherightdirectioninApril.Monthlyinstallscrossed400,withanewhighdayof26.Closedcustomersgrew30Andonemorething\dots WemadethedecisiontocancelourGen2programandaccelerateGen3,alowercost,Basedesignedandmanufactured(inTexas)homeenergysystem.We’vere-allocatedallinternalengineeringresourcesfromGen2toGen3,workedwithourGen2supplierstowinddownallworkwiththem,andfocus100“Itmighthavechangedthegame,”Dinotellsme.“Itmighthavepivotedthesuccessofthebusiness,honestly.”“WehaddozensofpeopleimmediatelystopworkingonitandstartfocusingonGen3.Therewasabunchofthrowawayworkweavoided.Andthenumberofmeetingsperweektalkingabouttheday-by-dayslipofoneinvertersupplierversustheother\dots allthatshitjustturnedoff.”“Then,becausewehadalltheresourcesfreedup,wedidabigarchitectureweek,”hecontinued.“ThepowerelectronicsteamisinSanCarlos,soIinvitedthemhere.WegatheredthedesksinabigcircleandsprintedtowardaconceptforGen3.ThenwegotZachandJustinandJared,thewholeteam,togetherandlookedatit.Andwewerelike,‘Ohman,wecanmakethissomuchbetterthanitwasgoingtobe.’Ithinkatthatpointweallfeltlikewe’ddodgedabullet.Andthenwewentandmadeit.”“Andthenwewentandmadeit”soundssosimple,butmakingbatterieswasnotsomethingBaseactuallyknewhowtodobackthen.SotheycalledAndy.AftereightyearsatTesla,whereheleftastheDirectorofBatteryManufacturingEngineering,[AndyRoss](https://www.linkedin.com/in/andy-ross-a3625510/)decidedtotakehistalentstoGeneralMotorsasDirectorofManufacturingOptimization.GeneralMotorsisaverylargecompanyandthereisalottooptimize.Justoneweekintohisnewrole,inAugust2024,JustinandDinoreachedouttoAndytotalkaboutBase.Atthetime,Basewasn’tmanufacturingitsownbatteries,andwasn’tplanningtoforanothergeneration.“Thetimingisn’tgreatforme,”Andytoldthem,“andyoudon’tneedanybodywhodoeswhatIdoeither.Butfeelfreetousemeasaresource.”AndyjoinedBaseinMarch2025.HasitbeenmorefunthanGM?Iasked.“OhmyGod,somuchmorefun.”Basepeoplehavetheirowndefinitionoffun.InAndy’scase,“fun”meant:HejoinedinMarch,TheydecidedtocancelGen2andmanufactureBaseCorein-houseinApril,TheysignedaleaseintheoldAustinAmericanStatesmanbuildinginJune,TheygotthekeysinSeptember,andByMarch2026,hisoneyearanniversary,heandtheteamhadlandedtwoproductionlinesandbegunputtingBasebatteriesinthefield.ThecompanyreferstothislevelofspeedasBasePace,anditrunsonamixofprocessandelbowgrease.WhenIaskedAndytodescribethecultureofthefactoryteamtoday,nowthatit’sgrownfromfourtoone-hundred-and-thirty-four,hesaid,“Wewantpeoplethatcansolvetoughproblemsbutdon’treallycarewherethatproblemis,peoplethatdon’tcarewhatthenatureoftheproblemistheyjustwanttobeapartoffixingit.”Thatcomesfromthetop.AssoonasBasetookpossessionoftheoldbuilding,theywantedtogettowork.ButitwaslatesummerinTexas,veryhot,andtherewastechnicallycoolingtowerinfrastructureinplacebutithadn’tbeencycledinsevenyearsandtheyweren’tgoingtobeabletogetitrecommissionedintime,andthey’dquotedsomeretrofitstobetemporarilyinstalledbuttheywereoutrageouslyexpensive,like$1 million, and they wouldn’t be ready for seven months, and the plan, at the time, was to only stay in Base Factory 1 (BF1) for thirteen months anyway, so that wasn’t going to work. “So I just started fielding local rental companies,” Andy recounts, the way you recount war stories from the good ol’ days, when there were just four engineers on the team and no maintenance leader and so you just figured it out yourself, “to just start landing some chillers outside the building. Good, bad, or otherwise, the door-opening mechanisms on the dock overhead doors were broken, and they’d be outrageously expensive to repair too, so I was like, ‘All right, we’re just gonna land them in front of the dock doors’ and me and one of my NPI guys were just sawzalling holes in the dock doors to get ducting into this place because it was late summer so it was like 95 degrees in the building and we wanted to get to work.” “The first night they showed up, I was here until about midnight on a Friday with the rental HVAC company just trying to get this building less hot,” he remembers, with that glint. “I never thought I’d be sawzalling dock doors to duct tape and chewing gum some air conditioning into a building, but everybody was very happy when they weren’t dying of sweat on Monday.” He applied that same elbow grease to the facility’s compressed air system. When Andy realized that he wasn’t going to be able to get the leftover 1980s-level factory compressor system working himself, he “went on Tractor Supply and bought the largest, but also 120V, compressors that I could find, and I was in the ceiling making up a makeshift pneumatic system for all of our pilot systems, so running pipe and dropping lines and everything.” Andy calls these his “hacky redneck” fixes. They’ve largely been replaced at this point, now that Andy has a team. But because he’s done many of the hard jobs himself, when he asks his team to do the same, he can tell them with a straight face: “Sorry it sucks, but it isn’t going to exist otherwise.” “When I was at Tesla,” he told me, “it was a passion of mine to personally operate every station on every line on every continent that my team deployed things to, because a good solution to an engineer might not be a good solution to the person that has to use it.” Which is probably why, as Andy grew the team from those initial four engineers to the one-hundred-and-thirty-four people that make it up today, 80% of the salaried team members are people that Andy has worked with before, which I suggested must feel pretty darn good. “The thing that’s been special about manufacturing in particular is the amount of great people that have been,” he searches for the right combination of words, “bold enough, hopefully not foolish enough, but ambitious enough to pick up my call and hear me say, ‘You want to go do something crazy?’ and they say, ‘Yeah.’” “Bold enough, foolish enough, ambitious enough… doesn’t matter. They want to go solve big problems and we had big problems.” “We had no factory, we solved that problem, we got a factory. We had no team, we were solving that along the way. And we had no concept of a manufacturing strategy yet, then it was all just philosophical, on the computer, and then we went out there and found new machines, new vendors, new equipment from all over the world to go achieve it.” When Base started sourcing the equipment for BF1, it was just Andy and one other manufacturing engineer. By the time they were ready to start placing purchase orders, a few others had started to trickle in. Andy would tell them, “Welcome, this is the thing we’re going to buy tomorrow, you’re going to be in charge of executing this project now.” Those early days in BF1 might not have been pretty, and will certainly look downright primitive compared to BF2, BF3, BF…X. That’s great. At Base, you figure something out, and then you turn it into a capability. Your best laid plan needs to face harsh reality, so you can learn, improve, and try again. Plus, whatever the Manufacturing team had to do, it worked. Fast. In Austin, Texas, right down the street from Base HQ, “We landed two battery module manufacturing lines and one inverter manufacturing line (the ratio is because there are four battery modules per inverter).” By January, a little over one business quarter after taking possession of the space, Base’s pilot battery module line was up and running and the team started pre-production builds. All told, over the course of the last fifteen months, Base got out of Gen 2 contracts with only $1millioninpenalties,builtoutamanufacturingteam,openedafactoryintheoldAustinAmerican-Statesmanpressbuilding,figuredouthowtoaddageneratorhookuptothebattery,stoodupasupplychain,builtthefirstGen3batteries,testedtheminasmuchasthreefeetofwater,rewrotesoftwareandfirmwaretomatchtheirnewcapabilities,builtmoreGen3batteries,beganinstallingthemonemployees’homes,thenfriends’homes,andthenallsortsofTexans’homes,andrenamedthebatterysystemBaseCore.Allthatdone,BasenowofferswhatDinois“quiteconfidentisbyfarthecheapestresidentialbatteryonthemarket.”ByFebruary,ithaditsfirstBaseCoresystemreadytoinstall.TheDayTheTeamInstalledtheFirstBaseCoreManufacturingisascalestory.Youcertainlydon’tsetupawholefactorytomakeonebattery.Butyoudon’tscaleupawholebusinesswithoutstoppingtoappreciateonebatteryeveryonceinawhile,either,especiallywhenit’sanimportantone.ThatfirstBaseCore,whichpeoplefromalmosteveryBaseteamgatheredtoinstallonateammate’shouseinFebruary,wasanimportantone.[DanaPaz](https://www.linkedin.com/in/danapaz/),theAndurilalumwhoisBase’sHeadofDeployments,responsibleforthemulti-statelogisticsandinstallationnetworkthatBaseisgrowing,toldmethatitwasthehighlightofthischapterintheBasestory.“ThatfirstGen3install–sorry,BaseCore,don’ttell[Cole[Jones,Base’sHeadofGrowth]](https://www.linkedin.com/in/colecjones)IsaidGen3–trulywassuperepic,”shesaid.“Thereweresomanypeopleinatinypackedsidealleyandthevibesweresohigh.Forthose,likeDana,whohadbeentherefromthebeginning,itwasanopportunitytoreflect,briefly,onhowfarthey’dcome.“ThefirstGen1installwasmeandColewiththeCraigslistelectrician.Ittookovertwodaystohackthethingtogetheranditwasjustpurechaos,”Danaremembered.“Andthenthisonewaschaosbutinamuchbetterway”:Wenowhaveanentiresupportsystem,soyouhavetheengineerson-site,thehardware,thefirmware,theelectricianswerethere,thedeploymentspeoplewerethere.Wewerefinishingstuffinthefactory,offtheline,functionaltests,likethrowitinthebackofaperson’scar,driveitovertothesamehousetodotheinstall.Wehadablackstoneout,wewerecookingtacos.ItwasjustwaybettervibesonGen3thanGen1,whichwascool.“Itsetthestagewellforustothengooutanddosomethinghard,”Danasaid.“Wehadabunchofpilotsthatwehadtogoreworkabunchoftimes,becausewewouldtrysomethingnewoutanditwouldn’twork,sopeoplewouldbegoingbacktothesamehouselikesixtimes.Soyou’relike,‘Isitreallyworking?’Idon’tknow,youhaveyourdoubts.Butbeingabletoanchoronthatsuperepicfirstinstall\dots yeah,thatwasthehighlightformeoverthepastyear.”Somethingisworking.Thismonth,onlyfifteenmonthsafteritdecidedtomakethethinginthefirstplace,BasewillinstallmoreBaseCoresystemsthanGen1systems.HowtoBuildYourFirstBatteryFactoryThere’sbeenalotoflearninginbetweenthatfirstBaseCoreinstallandthethousandth,naturallyandonpurpose.Baselikestomakeathing,getitoutinthefield,hookitup,andlearnfromitasquicklyaspossible,sothatitcantweakitsdesign,maybesupplychain,andmanufacturinglinesasquicklyaspossible,sothatitcankeepcompoundingasquicklyaspossible.FortheHardwareandDeploymentsteams,thatmeantgettingthefirstoneoutandhookeduptoahouse,toseewhereitbrokeandtweakthedesignaccordingly.ForAndyandtheManufacturingteam,thatearlyiterationloopmeantthattheyneededtokeepthepilotfacility,BF1,asmanualandflexibleaspossible.“Whatbitesyouinmanufacturingisyoudesignathingthatyouthinkisgoingtobethethingyoulaunchonandthenyoulaunchwithamildlydifferent,sometimesradicallydifferent,productarchitectureandyou’rescramblingfromamanufacturingengineeringandequipmentstandpointtotrytorecoverthemachinetomatchthethingyouneedtogobuild,”heexplained.“AndthethingthatTeslataughtmewastotrytolimittheamountofonewaydoors,ortheinflexibility,aslongasyoucanfromamanufacturinglinestandpoint.”ThisiswhyautomationcomeslastinElonMusk’sfive-stepalgorithm.Automationisinflexible.“That’sonereasonthatwekeptitprettymanualtostartoutatthisfactory,wastoenableahigheramountofflexibilityinbothprocessandindesignaslongaswecould,”Andysaid.AnotherreasonwasthatBase’ssystemsweren’tsetuptohandlemuchmorethanmanual.TheManufacturingExecutionSystem(MES)-thesoftwarethattracks,monitors,documents,andcontrolsthemanufacturingprocess-thatBasehadbeenusingwas“originallybuilttodoretailclothinginventorytracking.Itwassomethingyouwoulduseinajobshopwhereyou’remaking50ofathingandthenyou’remakinganewthing,notwhereyou’remaking1,000ofathingperday.”Itwasalow-volumetoolwhereBaseneededahigh-volumeone.Atfirst,theteamtriedtoredneckhackitbybuildinganarchitectureinwhichtheoriginalsoftwaresystemmightwork.Maybeatthefirstlevelitdidn’tlookgood,butatthesecond\dots “No,whenwedugintoit,itstillwasn’tverygood.”TheypresentedtheirfindingstoJustin,andtoldhimtheyfeltconfidenttheyshouldgobuildtheirownMES,asignificantundertakingthatwouldrequiregoingslowforawhiletogofastlater.“OneofthethingsIappreciateaboutJustinisthathevaluesandappreciatestheexperiencethemembersofmyteambring,”Andysaid.“AndwhenwepresentedtheideaofmakingourownMEStohim,helookedattheteamandsaid,‘Yep,makeitso.’”Sotheydid.TheyreleasedthefirstversionofthesysteminJanuary,rightasthelinegotupandrunning.ByApril,itwasthesystemofrecordateverystation.ByJune,themanufacturingsoftwareteamwasintegratinglivecontrolsforthefactory’s21robots.(Beingsmartaboutwhentoautomatedoesn’tmeannoautomation,asJustindescribestoMollyO’SheaduringtheirBF1walkthrough.)ThentheybuiltWhimsy,whichstandsfor“Wheretheheckismystuffy’all,”totrackinventoryfromthemomentitarrivesatBF1untilitleavesforoneofBase’ssix-pluswarehousesaroundthecountry,andtheybuiltabespokeQualityManagementSystem,tohandlesupplierquality,productionapprovals,andnon-conformingparts.Ineachcase,fromthefirstinstalltotheflexiblemanufacturinglinetotheinternaltools,whatBaseisbecomingexcellentatistheprocessofgoingfrom“We’llfigureitout”toencodingthesolutioninprocessorsoftwareasquicklyaspossible.FigureItTheFuckOutIfirstdiscussedwritingthispiecewith[GabrielFederman](https://www.linkedin.com/in/gfederman/)atBaseacoupleweeksago.Threedaysafterthat,onaMonday,he’dpackedmycalendarwithmeetingswithabouttenteammembers.Andthatsameday,IgotanemailfromtwoBaseinterns,[PrithikaDevarajan](https://www.linkedin.com/in/prithikadev)and[RichaPandya](https://richapandya.com/),subjectline:“AtBaseToday?”Turnsout,they’deachseenmymeetingswiththeirrespectivebossesontheircalendarsanddecidedtotaketheinitiativeandreachout.AlsoturnsoutthattakinginitiativeisabigpartofthecultureatBase,andwhenwespokethenextday,RichaandPrithikaeachhadstories.Richa,aUniversityofTorontoelectricalengineeringstudentworkingonDino’sHardwareteamduringhereight-monthco-op,hasmostlybeenfocusedontheinverter,onfieldreturns,andonnewdesignsforthebatterymanagementsystem.ButassoonasshegottoBase,shestartedlookingthroughtheGoogleDrive,whereshefound[REDACTEDUPCOMINGBASEPRODUCT]andthought,“ThisisthecoolestthingI’veeverseen.”ShetoldDinoshewantedtoworkon[REDACTEDUPCOMINGBASEPRODUCT]andhesaid,“Great,writemeaproposal,”andhemeantlikeaproposalofwhatshe’dworkon,butRichacamebackwitha10-pagereportonwhatthecommercialversionof[REDACTEDUPCOMINGBASEPRODUCT]couldpossiblylooklike,andDinosaid,“Thisisreallycool,youshouldkeeppressing,”andsonowRichaisworkingonthat,too.Prithika,aUniversityofNorthCarolina-ChapelHillstudent(therereallyistalenteverywhereIguess),isworkingonGabe’smarketingteam,onsomeSEOstuff,andonthevisionanddesignforacommercialenergyproductthat’slaunchingsoon,andevenspenttwoweeksboots-on-the-groundinElPaso,onwhichmoreinasecond.Butshewasalsofascinatedbythecompany’sutilitypartnerships,andnoticedthatBasedidn’thaveamapofallthebatteriesinTexasandwhethertheywerechargingordischarging,[likePowerwalldoes](https://www.tesla.com/vpp),andsoshemadeaquickMVPandbroughtittoLaurenThomasontheUtilityPartnershipsteam.Laurenlookedatitandsaid,“Actually,thisisfrickingsick.Idon’treallycarethatyou’reanintern,Iwantyoutogofigurethisoutandmakeitbetterandcomebacktomeassoonaspossiblewithit.”Whichshedid.Thiskindofopennessandcross-pollinationispartoftheculture,too.Therearefifty-five(55!)internsatBasethissummer,andtheyallworkondifferentteamsandhangoutallthetime,whichmeanstheyallhavevisibilityintoallthedifferentareasofthebusiness.Itsoundslikeatonoffun,butwhendutycalls,theinternsareexpectedtodotheircorejobs,whateverittakes.Forexample\dots Baserecently[launchedautilitypartnershipwithElPasoElectric](https://www.epelectric.com/news/el-paso-electric-and-base-power-launch-residential-distributed-energy-storage-program-to-strengthen-grid-reliability)that[TimPianta](https://www.linkedin.com/in/tim-pianta-7b31a365/),Base’sHeadofUtilityPartnerships,wastellingmeaboutthedaybeforeItalkedtoRichaandPrithika.Whatmadethepartnershipunique,hesaid,wasthatitsgoalwasdeployinginspecific,particularlyconstrainedpartsoftheirgridtodefercapacityupgrades.Whatthatrequiredwasinstalling10MWbehindaparticularsubstation,whichmeantgettingroughly10Prithikawastaskedwithhelpingmakethathappen.“InElPaso,wehadtodeploy10MWofbatteries,”shetoldme.“Sotheysentmeand[Olive](https://www.linkedin.com/in/olivenye/),anothermarketingintern,toElPaso.”WhileBasehassignedupthousandsofTexans,manythroughutilitypartners,thelevelofgeographicprecisionneededinElPasowasnew.“Timwaslike,‘Youneedtofigureitout,’”Prithikasaid,“Andsowedid.Itwas104degrees,weweretherefortwoweeks,weknockedondoors,wehostedhappyhoursatcoffeeshops,weshowedupatfarmersmarkets,andwewereabletopullitoffandenduptwoweeksaheadofschedule.”Intheend,one-thirdoftheneighborhoodsignedupand10Partofthelesson,shesaid,wasthat“wewillfigureitthefuckoutnomatterwhat,”buttheotherpartisthatyouneedtoturnthatintolearninghowtodoaprocesswell.“Thenextutilitywillbesuchsmoothsailingnowthatwe’vefigureditout.”“Alotofhowwethinkaboutthingshere,”Richaadded,“isasafactory.Thefocusfromthebeginningofanythingishowwe’llbeabletostandardizeitandturnitintoafactory,whichinfluenceshowyoudesigntheproductinthefirstplace.”ThenshesaidsomethingthatdescribesBasein2026aswellasanythingI’veheard,howit’sabletomaintainitscultureandgrowreallyfastandnotstagnatebutnotdescendintochaos,howitcancompoundonthecoreandholdtheHighGroundandexpandout.“ImagineBasesortoflikeaweb.It’sexpandingoutwards,andallofournewideasareattheedge,andallthescrappinessisattheedge,andinthecenter,we’retryingtotakeinnewthingsoncethey’vebeenprocessedattheedgeandstandardizethemintoprocessesandsoftwareandmakethemmoreefficient.”Tosynchronizeourmetaphors,theCannonistheresultoftheWeb.Learnsomething,thenturnitintoaprocessorencodeitinsoftware,andasaresult,theteamisexperimentingwithnewtoolseveryday,theytoldme.WherethefactoryhasitsMESandlogisticshasWhimsy,forexample,theSoftwareteamhasbeenworkingonbuildingoutBaseOS,whichtakescustomersfromtopoffunneldowntogettingtheirinstallscheduled.Historically,thishasbeenabajilliontoolstiedtogetherthroughAPIsandnowtheywanttodoitthroughonehomegrownsystem.“Soit’sconstantlyfailing,butit’salsoconstantlygettingbetter,”whichisabeautifulmetaphor,too.Build,fail,getbetter,ownthatcapability,buildonit,fail,getbetter,outwarduntilthewebenvelopstheindustry.ThatiswhatAndyandteamaredoinginBF1,too.Bytheendoftheyear,they’llneedtobepumpingoutabout1,300BaseCoresystems,consistingoffour10-kWhmoduleseach,everyweek.That’sroughly5xfromtoday,withthosegainstocomefromaddinganightshift,andfrom“attackingalloftheuptimeproblems,thecycletimeopportunities,andstandardizingalotoftheworkflows.”Takesomescrappyredneckprocess,figureitoutattheedge,andstandardize.Theyearafterthat,they’llneedto3x,andthenthey’llneedto2xagain,atleastonthecurrenttrajectory.Thatmeansthatin2028,they’llbeproducing30xmorebatterieseachdaythantheydotoday,fromthecomfortofthebigger,moreautomatedBaseFactory2.From2028,today’sproductionnumberswilllooktiny,buttoday,they’recausefor(brief)celebration.“Youshouldseeanall-hands,”RichaandPrithikatoldme.“It’sliterallyjustJustinandZachsayingsomeKPIandeveryonestartsshoutingandclapping,everyone,everytimethere’sawin.Recently,inthefactory,they’vebeenhittingrecordsonhowmanymodulesandinverterstheyproduce.Everytimewehitsomekindofrecord,everyoneisjustso,sointoitandexcited.”Lastmonth,thefactorymade29510-kWhmodulesinasingleday.Thecrowdwentwild.UnbelievablyFastThethingaboutconstraintsisthattheymove.Figureoutthefactory,andsomethingelsebecomesthethingstandingbetweenBaseandflawlessexecution.WhenIaskedJustinwhichteamcurrentlyhadthe[Turtle](https://www.notboring.co/i/161326108/a-note-on-the-turtle),thestuffedanimalturtlethatsitsonthedeskofthepersonmostresponsibleforclearingthecriticalpath,hedidn’thesitate:“SquarelyontheSupplyChain.Basically,we’vebeenabletorampourfactoryfasterthanfourorfiveofthekeysupplierswe’resolesourcedtorightnow.”BecauseAndyandhisteamrampedupthefactorysofast,theTurtlenowfallstotheteamwhosejobitistofillitwithparts.[ColbyJarrett](https://www.linkedin.com/in/colby-jarrett-8355b857/)isworkingonit.ColbycameoverfromTesla,too,whereheworkedontheVehicleprogram,unlikealotoftheTeslarefugeesatBase,whoworkedonEnergytherebeforeworkingonEnergyhere.ButColbydidworkonbatteriesforvehicles,mostrecentlyastheSeniorManageronTechnicalProgramsforCellManufacturingEngineering,andoneveryfactorylaunchotherthanFremont,whichpredatedhis2017startdate.Duringhiseightyearsthere,Teslagotbigger,andmorebureaucratic,andhegottiredofthat,sohelookedforsomethingsmaller,spentabitoftimeatFormEnergyinPittsburgh,andthenjumpedtoBase.ColbyjoinedtoworkforDinoinHardware,workingonprogrammanagement,compliance,andsourcing.WhenhejoinedinJuly2025,therewasnofactory;therewasaprogramandanearlydesignforGen3andthatwasaboutit.“Andwe’vebeenkindofpush-pull-flippingitupthehilleversince.”WhenColbystartedatBase,oneofthefirstproblemshewastaskedwithwas“pickingasupplychain,soroughly20vendorstomake40parts.”IfiguredhewastherightpersontoaskaboutthechallengesJustinbroughtupaboutvendorsnotworkingatBasespeed,andhowyousolvethose.Hegavemesometechnicalreasons.Like,Basehassomethingaboutitsdesignthat’shardthattheydidn’trealizewouldbehardandnowthevendorishavingyieldissues.Aswespeak,Baseisrampingmorethantensupplierlinesalongsideitsown,sendingengineerstosupplierfloorstodevelopprocesses,installhardtooling,andproject-managethemovefrombridgesupplierstoproductionsuppliers.Or,Colbyadds,atthe“commercialinterface,atthespeedthatBasemoves,it’sprettymuchimpossibleforustotellthemexactlyhowthisthing’sgoingtobemadeinhighvolume.Bythetimeweneedthemtostart,they’vegottostartwithquiteabitofambiguitystillintheproductdesignandintheprogram,andremovingthatambiguitywithoutlosingcommercialleverageonpriceorscheduleisaveryhardproblemwithvendors.”Thiskindofstuffisnewforthecompany,andthepeoplewhostartedit.Justinadmittedthathehadkindofablindspot,becausehighvolumemanufacturingisverydifferentfromlowvolumemanufacturing,andatSpaceXandAnduril,he“haddonemostlylowvolumemanufacturing.”“Andinlowvolume,youcankindofbruteforcealmostanything.‘Oh,wedidn’tgetthepartdoneFriday?We’lljustworkthisweekendtofinishthemachinepartforFalconorStarshiporwhatever.”But,hesaid,inhighvolume,“youplanproductiononceinadvance,yousignlong-termcontracts,youreservelong-termcapacity.Alloftheseareconceptsthatareintellectuallyobviousbutwhenyouactuallygodotheminpractice,it’sabitdifferent.”Butyoudoit,youmakecontactwithrealityandyoulearnandyouearntherighttogettoscaleandtohireevenmoregreatpeoplelikeColby,andthenyoucontinuetofigureitout.Youcanfigureoutallofthehardtechnicalstuff,butmaybethebiggestthingyouhavetosolve,Colbytoldme,issomethingsofter.“Ispeculatethatsomeofourbiggervendorsjustdidn’texpectustoexecute,”hetoldme.“Weshowedthematimelineandtheysaid,‘Yeahweworkwithabunchofstartups,we’veseenthismoviebefore,you’regoingtocomebackandpushthescheduleonus.’Butplusorminusamonthortwo,we’reonthesameschedulewepublished18monthsago.”“Someofthemhavehadtheirlittle‘OhShit’moment,thatthisisreallyhappeningattheratethatwesaiditwasgoingto,andaretryingtoplaycatchupbecausetheydidn’treallystartoutoftheblocks.”Soyouhavetoprovetothemthatyou’regoingtodowhatyousay,whichyoucanonlydowithtime,andwhichBasehasnowdone,andyouhavetosellthemonavisionofwhathappenswhenyoucontinuetodowhatyousay.“Baseasacustomermaybeisn’tabigdealnow,”Colbysaid,“butthey’vegottounderstandtheopportunityandtheambitionsofBaseasawholeandoftheBaseCorebatterysothatthey’reincentivizedtogrowwithus.”Inshort,BaseneedstogetitssuppliersevenhalfasexcitedaboutBaseCoreasitsemployeesare.ThePlatonicIdealofaBatteryJustasDinowasn’texcitedaboutGen2fromanengineeringperspective,“Danawasn’texcitedaboutitfromanoperationsperspective,Iwasn’texcitedaboutitfromourmembers’perspective,”Coletoldme.“We’relike,‘Wait,whatarewedoing?Thisdoesn’tmakenearlyasmuchsenseasitwouldifweweretobuildtheplatonicidealofabattery.’”ColeisveryexcitedaboutBaseCore.“BaseCorehasbeenthecompany’sbigbet,tomakeitreal.Andnowitisveryreal,”hesaid.“It’sthebiggest,bestthingfortheenergyworld,evermaybe.Inmyopinion,itisthekeytoenergyabundance.”Intermsofitsspecs,BaseCoreisthebestbatteryonthemarket.BaseCoreisthehighest-capacitybatteryonthemarket,with39.2kWhofenergycapacity,comparedto25kWhforGen1and13.5kWhforTeslaPowerwall3.ManycustomersgettwoBaseCores,fornearly80kWhofcapacity,whichgivesBasemoreabilitytobalancethegrid,androomtoaddenergy-consumingproductstotheoffering.Ithasa20kWinverter,whichiscrazypowerfulandmeansthatBasecanpushoutalotofpowerveryquicklytosupportthegrid.JustintweetedthattheybelievetheinverterisoneofthemostAmerican-madeonthemarket,whichisparticularlyimportantnowthatthe[FCChasaddedforeign-madeinverterstotheCoveredList](https://docs.fcc.gov/public/attachments/DA-26-786A1.pdf)sincethey’revulnerabletobeingshutoffremotely.BaseCoreoperatesintemperaturesaslowas-22°F,muchcolderthanGen1’s14°F,whichwillcomeinhandy(necessary)inIllinoisandothercold-weathermarkets.Itisphysicallysmaller,anditsvolumetricenergydensityisnearly2xthatofGen1,meaningitpacksmoreenergyinasmallerpackage.Itstransfertime-howlongittakestoturnonwhenneeded-is10xfasterthanGen1,at50msinsteadof500ms,thedifferencebetweennoticingaflickerwhenthepowergoesoutandnotnoticingitatall.Notonlyisitthebestbatteryonthemarketgenerally,itiscustom-builttodowhatBaseneedsittodo.Dinotoldmethatthepriorityrankingwhendesigningthebatterywas:1.Safety\to 2.Function\to 3.Reliability(AllMust-Haves)\to 4.Cost(whywe’regoingtowin)\to 5.Install(whywe’regoingtowin)\to 6.Serviceability\to 7.Beauty\to 8.Delight.Baseoptimizedforlandingalotofrelativelyinexpensiveenergycapacityateachhomeinordertospreadinverter,customer-acquisition,andinstallationcostsovermanymorekilowatt-hours(kWh).Accomplishingthatmeansit’sthecheapestresidentialbatteryonthemarket,andisidealforlongbackupduration,andforbuying,storingandtradingmoregridenergy.ThemorekWh(andMWhandGWh)Basecontrols,themoremoneyitcanmake.Baseaimstoroughlybreakevenonthebatteriesthemselves-itchargesmembersafewhundreddollarsupfront,tocovertheinstallcosts,and$19 monthly fee in some areas. It makes most of its money today by storing power when it’s cheap and selling it back to the grid when it is expensive. Every battery is a time machine. Increasingly, Base makes money by helping utilities put more storage capacity online, as well, in order to better balance and get more out of their grids in order to delay capital investments. In both cases, more capacity directly translates to more revenue. And given that customer acquisition and install costs are roughly the same whether you’re installing 39.2 kWh or 20 kWh, the more you can pack in each system, the better the unit economics. This is one of the benefits of vertical integration: you can design your hardware to do exactly what both your customers and your business need it to do. Base Core has a little something for everyone. For Dana and Deployments, this is a battery that was designed to be installed. “The hardware was designed to install with ease,” Colby told me, “because we knew emotionally that we were going to have to be the ones to install it and didn’t want the pain and complexity of a hard battery install. I think if Base weren’t as vertically integrated as it is across the whole business, not just the hardware stack, those dependencies are less obvious to optimize for.” The biggest change is to Disco, so named because it’s an internal disconnect that sits between the grid, the home’s main panel, and Base Core. It allows Base to split the install into two stages: electricians do the detailed electrical work when they disconnect the home from the grid with Disco, and installers come to plug in the module the next day. “Install basically goes from three steps down to two steps,” Dana told me, and importantly, it decreases how much scarce electrician time Base needs to use. Designing for install does mean making trade-offs. For example, Dino told me, they could have squeezed in more energy per module, “but it would have been a trade: now every single time we lift the battery, it would have to be done by a piece of equipment and it can never be lifted by a person.” Vertical integration allows you to control that trade-off. One of the things I’ve appreciated about Base from the very beginning is that it optimizes for the whole deployment instead of any one spec. They call it the Deployment Factory, and the more Base controls, the better a factory it can design. Base Core comes with features that help the Software team, too. The same Disco has new telemetry on it, which helps them get to base truth on any issue very quickly. “For Gen 1, sometimes people would call us and say ‘my lights are flickering’ and we’d try to diagnose it based on information you give us and our one-hertz telemetry,” Jared told me, referring to the fact that it ran 1 time per second, a huge upgrade from the every five minutes utilities are used to but still too slow for the precision Base wants. “Now, we implemented new telemetry on the Disco, which at seven kilohertz (7,000 times a second) is running analysis on the actual waveform.” With that, the team can diagnose, and then fix, most issues remotely and near-instantly. The new battery is flash-flood tested and can be submerged in three feet of water, too. Dino mentioned that they “welded the lid on like a submarine. We hardened the crap out of it because we wanted them to be able to work underwater. And then we tested it, with water all the way up to the top of the inverter, and it just works. Full submarine mode unlocked.” This sounds like it’s a cool-to-have, but it also expands where Base can operate to include low-lying flood zones. Then there was the big one for Cole, the feature that answered the most common customer question: “How long is this thing going to last?” So Dino and his team added a generator port, and now Cole and his team can honestly tell customers, “We have this generator port, so it lasts as long as you need. Obviously, you can use the battery as your first line of defense, but in the event of a winter storm, you’ve got this thing included, and it’s only a few hundred bucks to add a generator to it.” Think of it like adding a gas tank to a Tesla to eliminate range anxiety. Most of the time, you’re golden with the battery, but if you can’t find a charging station and you just need to fill ‘er up quickly, you can. “I think it’s the best feature, honestly.” As Dino pointed out when deciding to kill Gen 2, though, this thing is going to break. The thing I heard from multiple people that makes making Base Core in-house so great is how fast you can fix it, which Dana said means that “The iteration loop is much faster.” That is the biggest benefit to vertical integration: the speed of the feedback and iteration loop. On an early install she went to, “One of the installers, the electrician, was like, ‘Why did we do this thing that way?’ And I turned to the designer and was like, ‘Yeah, I don’t know, designer, why did you do that thing that way?’ And the designer was like, ‘Oh, shit.’ And so all that stuff just makes the feedback loop much tighter, which just makes it a little bit better.” “Because we’re so vertically integrated, if something’s broken in another org, I can go fix it” Colby agreed. “I don’t have to argue with people outside my organization and work through a commercial interface. That’s a speed enabler, which I think is huge.” Put all of it together, and you have what the team is quite certain is the best and cheapest residential battery on the market, a killer combination that, once installed, will protect you from outages and save you money on your electricity bill, and it keeps getting better as the team learns from contact with reality. Which is why everyone seems to want a Base battery. More Demand Than We Can Meet At the end of each of my conversations, I asked people what they would title this chapter in the Base story. Zach asked to come back to me with a title, but said “The subheader of mine is: commercial validation, just rip-roaring product-market fit, more demand than we can meet.” Base’s demand has come from what Cole calls the three-headed monster: homebuilders, utilities, and direct deregulated customers. Each has been humming, with utility surging to become the largest source of demand over the past few months. In July, Base signed over 6,000 new Battery members, roughly 40% more than in June, while installing a record of more than 2,000 systems. For every battery it installed, more than three new Battery members signed up. Despite the manufacturing ramp, Base is still supply constrained, which is why Andy is so focused on increasing production 5x and why the Supply Chain team has the Turtle. As many Base Cores as the team makes, there will be demand. But recently, for the first time, being a Base Member doesn’t necessarily mean installing a battery. In April, the company launched Base Energy, “an energy plan with guaranteed below-market rates,” for renters, apartments, and other Texans “who might not be ready for a battery just yet.” Base Energy is another early bet beginning to pay off. In Chapter 1, we discussed why Base operates as a Retail Electric Provider (REP), or more specifically, a “gentailer,” a retailer who owns their own generation. I wrote: The battery means that Base can offer customers a lower price on their electricity. The reason is counterintuitive. Selling electricity in a deregulated market is a low-margin, high-risk business. It’s low margin because it’s competitive, and REPs have to buy from generators and sell to price-sensitive consumers. It’s high risk because prices can fluctuate wildly. For most REPs, that makes selling electricity even lower margin, because they need to hedge their risk with financial instruments for which they pay a premium. “The hedge is a financial battery,” as Jared described it. “The battery is a technical hedge.” Since Base can hedge with technology instead of options, it can pass the savings it would have otherwise spent on premiums back to customers. Base Energy shows that that’s true on a network-level, not just member-by-member. With its fleet of batteries, Base is long power: when electricity is valuable, it has stored electricity it can dispatch. A retailer, like Base Energy, is short power: it has promised to serve customers and must procure that power. Combining the two can reduce risk and improve economics, and can also serve as top-of-funnel, a way to build member trust, and a word-of-mouth engine. “How is it that you’re paying 10% less than me for the same electricity?” Three months after launch, Base Energy had reached more than 14,000 members, bringing Base’s total membership across both offerings above 30,000. The direct business - with or without Battery - is growing, as is the homebuilder business. Lennar accounted for roughly 2,500 homes, or 30% of Base’s 2025 installations, and by March 2026, Base was available in 77 Lennar communities with a take rate above 65%. The biggest growth engine, however, has been utility partnerships. Providing Utility to Utilities Fifteen months ago, we focused the entire “Expansion” section on regulated utility partnerships, of which Base had just signed its first, with Bandera Electric Cooperative. When asked how Base might fail to become what it could become, one of its investors told me, “If Base doesn’t work outside of deregulated markets, if it can’t break into utilities, it becomes a less good business. The size of the prize is smaller, and it’s more competitive.” The good news is: Base has been able to break into utilities. Tim Pianta, Base’s Head of Utility Partnerships, told me back then that while Base had the best battery technology, and believed it offered the fastest speed to capacity and highest reliability compared to grid-scale batteries and Virtual Power Plants (VPPs), the whole game was to “chop wood, carry water,” to take the time required to prove to utilities that it could do what it said it could. Since then, Base has been proving itself. That initial Bandera pilot has turned into five larger utility partnerships, totaling 220 MW: “When I last talked to you,” Tim remembered, “I think the regulated part of our business was quite small. In 2025, I think we were on the order of a couple percent of the business. This month and through the end of the year, about 50% of the installs that are happening are regulated utilities installed. So we’ve kind of caught up with the deregulated side to some extent.” In fact, a full 58% of Base’s July installs were in regulated utilities’ territories. This makes Cole’s job easier, at least from a customer acquisition standpoint. “From a go to market motion, the utility world is quite simple,” he told me. “You get like 5% of the addressable market signed up just by the utility sending an email. It’s a free CAC. I love it.” It’s “free,” of course, only after the months or even years of work that Tim and his team put in to sign a utility partnership, which is a long sales cycle in its own right. But as Base continues to prove that it can get capacity online faster than centralized solutions, even utility partnerships are becoming lower cost to acquire. When I spoke with Zach, he was on his way out for a road trip to three of the largest investor-owned utilities (IOUs) in the west. “All the big utilities are calling us and they’re saying, ‘Please help us,’ basically,” Zach told me. “That was just not true fifteen months ago.” There are different types of utilities, each of which might want something different from Base, which means that while Base manufactures one battery, it can monetize it in a number of ways. In a deregulated market like Texas, it owns the battery, sells electricity to members as a REP, and monetizes the fleet. With co-ops and municipal utilities, Base deploys a contracted fleet that the utility can use. With investor-owned utilities, the IOU might buy the assets through a build-transfer contract, because they can place the batteries in rate base and earn an allowed return on the approved investment, and pay Base for software and services. Base’s innovation, from its initial decision to own the batteries instead of selling them to retail customers, has always been a business model as much as a technical one. It has been able to meet customers, whether retail or utility, where they are, and as a result, Base is well on its way in Texas. Its batteries backup early adopters’ homes in Dallas-Fort Worth, Greater Houston, and parts of the Austin metro. It has partnered with the state’s forward-thinking utilities, including recently signing its home utility, Austin Energy, through which it signed up more than 1,000 of its neighbors in the first month. There is an argument to be made that Texas is perfect for Base, and that it should continue to focus on pressing its home court advantage. Base, however, does not want to simply become Texas’ largest REP. It wants to be America’s Next-Generation Power Company, and America is bigger than Texas. So in June, for the first time, Base pointed the Capability Cannon north and fired. Daaaaaaaaa Batteries On February 1, 2026, right on schedule as always, Zach and Justin sent the monthly update to its investors. In it, they shared that Base had decided on its second market: Illinois. Illinois is large, with roughly 4 million single-family homes, deregulated like Texas, and has become one of the most battery-friendly states in the country. The same month Base decided to launch in Illinois, Governor Pritzker signed the Clean and Reliable Grid Affordability Act (CRGA, or SB 25). Base is so key to the state’s energy plans that Governor Pritzker cited Base’s decision to launch in Illinois as evidence that the Act was working. Tactically, CRGA establishes a 3 GW battery storage target by 2030 and gives residential batteries access to the PJM wholesale capacity market. PJM is the Regional Transmission Organization (RTO) that covers parts of Illinois, including Chicago, and the Mid Atlantic. PJM’s high capacity prices make stored power particularly valuable, while Illinois’ aging infrastructure and time-varying distribution rates create the opportunity to get paid for relieving stress on the local wires, a value stream Base cannot currently monetize in deregulated Texas. Illinois is also well-positioned as a potential … base … of expansion to the northeast and midwest. These are all specific reasons to choose Illinois once Base decided it was time to expand, but not reasons to expand in the first place. I asked Justin how they decided the time was right to make the Lone Star State less lonely. His answer was that the process was “perhaps too scientific,” but basically, they look at the penetration rate of eligible single-family homes in a given metro, and how expensive it would be to increase the slope of expansion within that metro. It gets expensive at a certain point, near where they’re at in Texas. “So we think the economic optimum is to expose ourselves to more TAM over time,” or in English, to enter new markets. Less scientifically, while everything is bigger in Texas, Base’s ambitions are even bigger than that. The only way to prove that it can expand outside of its home state is to expand. Base can take the capabilities it has built in Texas, and turn them on the next best market, where it can, as with the battery itself, see what breaks in the new context, fix those things, and apply them to the next market, and the next one, so that it iterates on go-to-market and deployment faster than everybody else, too. All of which means tweaking and testing. On the Growth side, Cole said that a lot of the early marketing was very Texas-focused, but, “We’re shifting to becoming America’s Power Company, which requires you to kind of localize your approach.” “So if you look at our Illinois website,” he continued, “it has a classic Midwestern brick home with a kid playing baseball in the backyard. The approach and how we think about photography, how we think about design is expanding.” “What we learned in Texas is that you need to earn trust and you need to humanize energy,” he said, “but the way you humanize it is obviously going to change region-by-region. You’re seeing this with the Illinois launch, and you’ll see this with a few other launches we’re cooking up over the next few months, as well.” The value prop people care about in each region differs slightly, too. Base’s core offering, everywhere, is “affordable, reliable power,” but, Cole said, “some will veer more affordable, for example Chicago, and others will veer more reliable, for example Texas.” This makes sense - Texas has been rocked by outages, and PJM wholesale power has gotten dramatically more expensive recently. ComEd, the utility that covers Chicago, has seen its all-in residential rate jump to 17.07¢/kWh, up roughly 90% from ~9¢/kWh in 2021. Brian Potter talks about why PJM and others have gotten relatively more expensive compared to ERCOT here. What is true across all of Base’s customers is that they would like to pay less money to receive more reliable power. Another thing that seems to be true among Base’s customers is that they trust local news. “Our target audience watches the local news at 5pm, and so getting Zach on TV with a reputable local TV station is a good strategy,” Cole said. Local newspapers work, too. Base launched in Chicagoland, the greater Chicago metro area, on June 24th, on the heels of “recent severe storms which left more than 400,000 without power.” It signed up more than 1,000 members and did 26 installs almost immediately. Then on July 27th, storms knocked out power to more than 530,000 ComEd customers. The next morning, the Chicago Tribune ran a favorable feature on Base: Base Power launches backyard battery backup system for ComEd customers. That day, 1,437 leads came in in Chicagoland, five times the previous best day, and 172 of them signed that day, nearly double the previous daily record of 90 and almost a quarter of the new Chicagoland members signed up in all of June. In Illinois, too, it seems that Base will have more demand than it can meet, which means it falls to Dana to meet it. Deploying a New Market It should be easier to launch a second market than it was to launch the first. Base knows what it’s doing now. It knows how to talk to potential members and how to walk them from top of funnel through signup with BaseOS. It knows how to make batteries, how to get them to warehouses, and how to get them from warehouse to house. It knows how to install them, now with less electrician time. It knows the type of people it needs to hire, and roughly how many. In many ways, a new market is just doing those things in a new place. To be sure, there are differences, too, new problems to be solved, or old problems, already solved in Texas, to be solved anew. Take permitting. In Chapter 2, we talked about the fact that each Authority-Having Jurisdiction (AHJ) in Texas could supersede the National Electric Code (NEC) with its own rules, which meant that each new neighborhood was a new adventure, and whether Base was able to install smoothly or not often came down to the whims of each particular inspector. It was Kafkaesque and annoying, but Dana and her team figured it out case-by-case, and it was another source of advantage “if you think about Base as a machine that eats complexity and turns it into moats.” Then, Base ate complexity and turned it into law. In August 2025, thanks in large part to work by Base’s policy team, Texas passed SB1252, a standardized code framework that said, “a municipality may not adopt or enforce an amendment to the National Electrical Code, or adopt or enforce an ordinance, rule, or other measure, that would regulate the installation or inspection of a residential energy backup system.” The framework said that the rules had to be the same throughout the state. That made Deployments’ job much more predictable, if not easy, and it was one of a million little things they figured out to make Texas go more smoothly. But Illinois is not Texas, and its municipalities are not subject to SB1252. Chicagoland has more than 500 permitting jurisdictions. Base is back to negotiating with individual inspectors in each about small differences. There are different labor and union dynamics there, too. In each state Base enters, it will have to push for policies that make permitting easier to navigate, and that generally support affordable, reliable energy, unless it can make the National Electric Code… national. “As of 2025, Texas is the only state where the state itself controls permitting, because of SB1252,” Justin told me. “We’re trying to do that elsewhere, but there’s a federal permitting bill very slowly making its way through Congress, and we’re trying to get language on that bill that is basically supportive of a similar path to what we did here in Texas.” Justin is very serious about this, because it slows Base down, hurts the grid, and hurts Base’s customers. Plus, it’s an unnecessary headache when there are so many other hard things to worry about. When we saw each other at Reindustrialize in June, we were talking Illinois permitting within 60 seconds. Last week, he wrote an op-ed for Utility Dive titled America’s permitting crisis lives at City Hall making the case that local permitting discrepancies are slowing the transition to clean, cheap, reliable energy and calling for federal or state-level action to standardize the process. To that end, in November 2025, Base hired Zina Bash as Chief Legal Officer. Bash is a huge get and a perfect fit, having clerked for Justice Samuel Alito, served as a Special Assistant to the President for Regulatory Reform, and as Senior Counsel to the Texas Attorney General before going into private practice. Bash’s hiring is a sign of how important the company expects policy to be going forward, and another example of figuring something out at the edge of the web (SB1252) and turning it into a core capability. There are a lot of new things to figure out in Illinois, but this time, Base is doing it with more resources, a more experienced team, and stronger brand awareness. “When we were trying to hire people in Dallas with no warehouse and no footprint, people were like ‘You’re a scam for sure, like this is not a real company,’” Dana recalled. That made hiring tough. Now, people know that it’s a real company. They may have read about it in the Chicago Tribune, the WSJ, or Not Boring, which seems to be making hiring easier, even in new markets. A couple of weeks ago, Dana flew into Chicago on one of her frequent trips up to launch the market. Her plane diverted to Indianapolis to refuel, and by the time she got to Chicago, she’d missed the rental car window and they canceled her car. So Dana goes to the rental car window and tells them, politely, that it’s not like she chose for her flight to be delayed… So we’re chatting with the guy, and I’m like, ‘It’s midnight, I really just need you to give me a car. If you tell me I need to take an Uber an hour to my hotel I’m gonna be very sad.’ And he was like, ‘Okay, I don’t like that, let me see what we can do.’ And then he asked, ‘OK, what’s your email?’ and I told him, ‘Oh it’s whatever at basepowercompany.com’ and the other guy goes, ‘Oh my gosh, I just applied to get a battery, they’re reviewing my site survey!” and I’m like, ‘No way!’ and the other guy says, ‘I install solar when I’m not doing this,’ and I was like, ‘Do you want to work at Base?’ I gave him the recruiter’s email, and he emailed and he’s applying to be an installer. It was pretty electric and it made my day. Base plans to hire about 50 people in Chicagoland by year-end. Hiring electricians used to be a huge bottleneck, but Base has great recruiters for that now. “The recruiters honestly shocked me with how quickly they can hire great people at this point,” she said, and noted that the challenge is now staying competitive with data centers who are willing to pay top dollar for electricians for short-term projects. Base will have to figure out ways to compete without simply upping the dollars - things like benefits, 401k, and equity that come with working for a company long-term, to the extent that potential hires value them - but if paying up is what they have to do, they’ll figure it the fuck out. “The answer can’t be, well we won’t install batteries because we don’t have electricians,” she said. They’ll figure out hiring, and how to adapt warm weather Texas uniforms to Chicago’s cold, and warehouses, and vans, and all of the millions of little pieces of complexity that turn into Base’s moats. Some will be Chicago-specific, and some will be a level up: how do you adapt something that works well in one place and make it work well in many? Chicago is the edge of the web; they’ll do something scrappy there, then turn it into a capability and move it to the core. They’ll use what they learn to launch the next market, then the next, each with its own hiccups, each a little more smoothly than the last. Then… The Mission is to Fix the Grid “The way I think about where we are is that this is really Chapter 1, Part 3: scale up Solution Number One [the battery] and spread that to the country,” Jared said, when I asked him to name this chapter in the Base Story. Base made a bet that, over time, batteries will be the foundation of the modern energy system, and that the best way to own as much of that foundation as possible is to sell residential batteries to consumers and utilities to provide them with affordable, reliable power. There is a long way to go to prove that out at the scale Base is aiming for, but it has built the product with which it plans to expand, and has begun the expansion. I started this chapter talking about the end game, about what happens at the end of all of that, and how Base might build the world’s largest energy company. And then, I spent more than 10,000 words in the weeds talking about all of the very hard, specific, and often hacky things the company has had to do to just get to this point. That was by design. Winning the High Ground is hard, and holding it now that they have it will be hard, too. “Seeing it in action, I have a feeling I know the answer to this, but why has no one done this before?” new Base investor JJ Watt asked Zach in his new video. “The truth is,” Zach answered, “it’s just really freaking hard. It’s difficult. There’s no new physics. There’s no secret magic potion. It’s just a bunch of really smart people working their butts off to solve really hard problems, day in and day out.” Those smart people are still working their butts off putting Base Core on as many homes as possible. At one point in Base’s life, one install seemed impossible. In Chapter 2, they’d hit a high mark of 22 in a day. Now, the record is 113. The next time we talk, it may be in the thousands. In July, Base installed twice as many batteries as it had installed in total in April 2025. It’s now deployed 585 MWh of storage, and aims to pass 1 GWh by the end of the year. The more batteries they have in the field, the more they learn, the more they improve. Dino said that what excites him isn’t making the next shiny thing, but making Base Core into the Toyota Corolla, a supremely reliable machine that you can print at volume. Justin, Andy, Colby and their teams will fix the supply chain bottlenecks, and figure out how to increase production of Base Core by 30x, in BF1 and BF2. Dana and her team will continue to tighten the Deployment playbook, and then unleash it on a number of new markets, while Cole and Tim continue to earn the trust of their consumer and utility customers. Utilities, already a much bigger part of the business than they were in April 2025, will be a bigger part still by Chapter 4. They are the guardians of the grid, and Base keeps figuring out new ways to help them guard it. “We spend a ton of time with utilities, and as we’ve done that, we’ve learned that most of the problems that utilities face are coordination problems. It’s about blocking and tackling and solving problems across the stack, not just in Make, Move, Store, and Sell individually, but when you combine all them together,” Zach told me. “We’re pretty good at coordination problems and we have visibility into the entire stack, and so there’s a lot of stuff we can do in partnership with utilities.” If there’s one person in charge of coordination problems and grid topology, it’s Jared. His team’s firmware and software stitches the network together, pulls telemetry data from the batteries Base has deployed to over 17,400 customers’ homes, and understands the grid on a hyperlocal level in a way that not even utilities themselves do. “Now, we’re starting to work on Solution Number Two, as well,” Jared said. What’s next? I asked. Any hints? “The mission is to fix the grid,” he said. “And what is the power grid for? Increasingly, it’s for driving compute.” “And so if we want to do a good job at fixing the grid, well, it doesn’t work to fix the part of the grid that is going to be a shrinking portion of the pie. If you look forward a few years out at what are the factors that have the potential to make the grid unhealthy? Compute is a major part of that.” When Base first started, it was clear that batteries were going to play a role in the future of the grid, at least among supergeniuses. In Chapter 1, I linked to a 2023 essay by Casey Handmer called Grid Storage: Batteries Will Win. What wasn’t clear was that those batteries would be next to homes. One of Base’s insights was to say, “Grid-scale batteries are great, but residential batteries are even better. They’re just harder. Let’s figure it out.” Today, it is clear that compute will play a major role in the future of the economy, and become an increasingly large consumer of electrons, whether from the grid or behind the meter. Like batteries, idea number one is to put all the compute in big, centralized data centers wherever hyperscalers and neoclouds can find powered land, or land they can power themselves in a reasonable timeframe. “One thing that’s hard with large, centralized grid-scale loads in general is that it’s sort of like…,” Jared searched for the right analogy. “Here, imagine if you have a rock and you’re trying to suspend it in a spider’s web. Wow, totally crazy one,” he said, not realizing that he was not the only Base employee to use a spider’s web as an analogy… If you have like one big rock, it’s really hard to find a part of the web to put it where it’s not going to break the whole thing. But if you have a lot of sand, it’s much easier to distribute that across the web so that you don’t have so much load on any individual point that it causes the thing to collapse, so the spiderweb can hold a lot more sand. Wow. If you can put the sand specifically in places where the grid has headroom and you don’t have any particular spot where you’re trying to connect hundreds of megawatts, and instead you’re able to connect hundreds of megawatts but across the whole network, you end up being able to connect more compute more quickly. Especially because you have the battery there where you can help with power conditioning and you can do it at a very high rate, because we control the hardware. You can make sure that you don’t have some bad effect on the power grid. I think we should be able to bring a lot of compute online while keeping the grid healthy. Base is not the first company to think about doing decentralized compute, just as it was not the first company to put batteries next to homes. Tesla, no slouch, did it earlier, and Base has grown like wildfire anyway, by vertically integrating to deliver the best product on the market. But the capabilities Base has developed on batteries might give it an even better starting point for what it does next. Its ability to manufacture hardware and install it on homes seems important, as does its ability to make a distributed network of batteries operate as one. As Base was building out all of the capabilities and culture it needed to do that well, “This new thing showed up in the past three years,” Zach said, “that is the fastest-growing consumer of electricity ever: AI.” It’s always possible for a startup to build a better mousetrap and use it to topple incumbents. My whole thesis is that it’s possible. Joseph Schumpeter called this the kind of competition “which commands a decisive cost or quality advantage and which strikes not at the margins of the profits and the outputs of the existing firms but at their foundations and their very lives.” Man, though, do times of great change help. Base made an early bet that electrification was such a time, that the growth of solar on one side and EVs on the other would demand batteries, and they were right. Then a second, even bigger, moment comes along, a faster and more violent shift in power, and Base finds itself in the right place at the right time and with the right capabilities to seize it. This is how a small battery startup in Texas might, one day, become the largest energy company in the world, even as energy companies get larger. While it’s a bit too early to share specifics, what Zach was willing to say was this: “So now, we’re taking this Capability Cannon and we’re pointing it at the infrastructure buildout, and we’re going to do it in two broad ways: one is bringing the power to the compute, and two is bringing the compute to the power.” We’re going to take that massive capability machine and we’re going to point it at AI. And we’re going to orient the company kind of entirely around this thing that is going to totally transform our industry. As a result we should be able to build the largest energy technology company ever. Because if we are the best energy technology company, and energy is going through this kind of once in a generation demand inflection as the result of AI, the company who does this should become the world’s largest energy company and perhaps the world’s largest company. But we’ll see. “The thing that feels most true if you were hanging out here and walking around or having lunch or dinner or sitting in our all-hands meetings is that it still feels so unbelievably early,” he concluded. “We’re just firing up the stoves and buying the groceries. We haven’t even started cooking yet.” If you’ve made it this far, I think you should seriously consider joining Base. If I were younger and smarter, I’d work at Base. Job’s not finished. Job’s just getting started. Thanks to Gabe, Zach, Justin, Cole, Jared, Dana, Tim, Dino, Andy, Colby, Richa, Prithika, and the whole Base team for your time, insights, and for letting me help tell the Base story. That’s all for today. We’ll be back in your inbox Friday with a Weekly Dose. Thanks for reading, Packy Great chapter 3. An awesome top 1% type company for sure. Three mental models I added to my list from this:

1. Expanding capabilities at the edge and then standardize them into processes and software and make them more efficient.
2. Learn something, then turn it into a process or integrate into your exisiting processes
3. Constantly failing, but it’s also constantly getting better Not sure they will be THE biggest energy company though compared to Tesla/SpaceX merger, seeing as that company will make the batteries, megapacks, compute chips, A.I, planning 100GW of Solar production. Hard to catch up with that. But maybe 2nd biggest is reachable.

By Packy McCormick

Original Article