This book was published by Kid Stuff with a copyright of 1985.
As far as I know, this is the first Kid Stuff TF book. Megatron's straightforward plan: to fill a cavern with coal to blow it up to make a giant diamond to mount on a satellite to make a heat ray to melt the Rocky Mountains to turn them into a huge sea of oil (???) to refine into fuel to beat the Autobots.
In making the diamond, he actually kills an undisclosed number of human slaves in an explosion. Human deaths are very unusual in Transformers fiction.
Skyfire puts in an appearance (cartoon model), and for some reason is equipped with null-rays. He makes an apparent suicide run against the satellite, running out of fuel and burning on re-entry, but he shows up again in the other books, so I guess he made it.
Prime and Sunstreaker then fly into space unaided to destroy the satellite, making you wonder why they had to sacrifice Skyfire.
This book features the first of many drilling / mole machines to be seen in the Kid Stuff series.
(Steve-o's TF Mainpage)