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Tesla Gigafactory 3 in China to exclusively produce Model 3 and Model Y variants
Tesla’s groundbreaking event for Gigafactory 3 showcased the company’s current lineup of vehicles and a personal appearance from CEO Elon Musk. As could be seen from images uploaded of the ceremony, Musk shared the stage with the first vehicle expected to be produced in the upcoming facility — a Tesla Model 3.
Unlike Tesla’s first Gigafactory in Nevada, which produces the Model 3’s drive units and battery packs, Gigafactory 3 is set to be equipped with production lines for both batteries and electric cars. As confirmed by Elon Musk earlier today prior to the facility’s groundbreaking ceremony, the Shanghai facility will be producing the Model 3 sedan and the Model Y SUV.
In a follow-up tweet, though, Musk also mentioned a particularly notable detail about Gigafactory 3’s output. In his update, Musk stated that the upcoming Shanghai facility would be exclusively producing “affordable” versions of the Model 3 and Model Y. Higher-end versions of the vehicles, such as the Model 3 Performance, would still be built in the United States and exported to international markets, including China.
Shanghai Giga will produce affordable versions of 3/Y for greater China. All Model S/X & higher cost versions of Model 3/Y will still be built in US for WW market, incl China.
— Elon Musk (@elonmusk) January 7, 2019
Such an announcement bodes well for Tesla’s strategy in the Asian economic superpower. Tesla’s vehicles in the country, after all, have so far been higher-priced than EVs produced by local electric car makers. By producing its lower-end Model 3 and Model Y in Gigafactory 3, Tesla would be able to price the vehicles very competitively in the country, mainly as the electric cars would not be subject to import taxes — regardless of the presence of a trade war between the United States and China.
Elon Musk has not provided more details about the “affordable” versions of the Model 3 and Model Y that would be produced in Gigafactory 3. In the case of the Model 3, though, Musk’s statement most likely pertains to the Standard Range version of the electric sedan. That’s a car that is, at its most basic iteration, priced in the United States in the same range as a top-tier Toyota Camry. The Tesla Model Y, on the other hand, is an electric car that would be competing in a market already enamored with SUVs. In China, a country that is aggressively pushing for the adoption of electric vehicles, such electric cars would likely be disruptive.
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- (Photo: TeslainShanghai/Imgur)
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- (Photo: TeslainShanghai/Imgur)
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- (Photo: TeslainShanghai/Imgur)
Images from Tesla’s Gigafactory 3 groundbreaking event in Shanghai, China. (Photo: TeslainShanghai/Imgur)
Tesla is aiming to follow an incredibly ambitious timetable for Gigafactory 3. When the company initially announced its target of starting vehicle production within two years after the facility begins construction, many in the United States were skeptical. Wall Street analyst James Albertine, for one, flat-out declared the target timeline was “not feasible.” In Tesla’s Q3 2018 production and deliveries report, Tesla did adjust its estimates, making its timetable even more aggressive. Earlier today, Musk noted on Twitter that the goal is to finish the initial construction of Gigafactory 3 this summer, followed by the start of Model 3 production by the end of 2019. Large-scale manufacturing of the electric sedan would begin sometime next year.
While such an aggressive timeline is classic Elon Musk, it should be noted that Tesla seems to be getting a considerable amount of support from the Chinese government. After the project was officially announced last year, for example, it did not take long before local Shanghai banks granted Tesla low-interest loans to fund part of the facility’s construction. Furthermore, Tesla’s bid for the 864,885-square meter plot of land in Shanghai’s Lingang Industrial Zone went unchallenged. The company’s construction partner, China Construction Third Engineering Bureau Co., Ltd, is also a subsidiary of China Construction, which is owned by the government.
With support from the local Chinese government, there is almost no doubt that Gigafactory 3 will be completed on schedule. Ultimately, the start of Model 3 production in the upcoming facility would likely depend on Tesla’s capability to ship and set up its equipment in the battery and electric car factory.
Watch Elon Musk’s speech at the Gigafactory 3 groundbreaking ceremony in the video below.
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Tesla wins another award critics will absolutely despise
Tesla earned an overall score of 49 percent, up 6 percentage points from the previous year, widening its lead over second-place Ford (45 percent, up 2 points) to a commanding 4-percentage-point gap. The company also excelled in the Fossil Free & Environment category with a 50 percent score, reflecting strong progress in reducing emissions and decarbonizing operations.
Tesla just won another award that critics will absolutely despise, as it has been recognized once again as the company with the most sustainable supply chain.
Tesla has once again proven its critics wrong, securing the number one spot on the 2026 Lead the Charge Auto Supply Chain Leaderboard for the second consecutive year, Lead the Charge rankings show.
NEWS: Tesla ranked 1st on supply chain sustainability in the 2026 Lead the Charge auto/EV supply chain scorecard.
“@Tesla remains the top performing automaker of the Leaderboard for the second year running, and increased its overall score by 6 percentage points, while Ford only… pic.twitter.com/nAgGOIrGFS
— Sawyer Merritt (@SawyerMerritt) March 4, 2026
This independent ranking, produced by a coalition of environmental, human rights, and investor groups including the Sierra Club, Transport & Environment, and others, evaluates 18 major automakers on their efforts to build equitable, sustainable, and fossil-free supply chains for electric vehicles.
Tesla earned an overall score of 49 percent, up 6 percentage points from the previous year, widening its lead over second-place Ford (45 percent, up 2 points) to a commanding 4-percentage-point gap. The company also excelled in the Fossil Free & Environment category with a 50 percent score, reflecting strong progress in reducing emissions and decarbonizing operations.
Perhaps the most impressive achievement came in the batteries subsection, where Tesla posted a massive +20-point jump to reach 51 percent, becoming the first automaker ever to surpass 50 percent in this critical area.
Tesla achieved this milestone through transparency, fully disclosing Scope 3 emissions breakdowns for battery cell production and key materials like lithium, nickel, cobalt, and graphite.
The company also requires suppliers to conduct due diligence aligned with OECD guidelines on responsible sourcing, which it has mentioned in past Impact Reports.
While Tesla leads comfortably in climate and environmental performance, it scores 48 percent in human rights and responsible sourcing, slightly behind Ford’s 49 percent.
The company made notable gains in workers’ rights remedies, but has room to improve on issues like Indigenous Peoples’ rights.
Overall, the leaderboard highlights that a core group of leaders, Tesla, Ford, Volvo, Mercedes, and Volkswagen, are advancing twice as fast as their peers, proving that cleaner, more ethical EV supply chains are not just possible but already underway.
For Tesla detractors who claim EVs aren’t truly green or that the company cuts corners, this recognition from sustainability-focused NGOs delivers a powerful rebuttal.
Tesla’s vertical integration, direct supplier contracts, low-carbon material agreements (like its North American aluminum deal with emissions under 2kg CO₂e per kg), and raw materials reporting continue to set the industry standard.
As the world races toward electrification, Tesla isn’t just building cars; it’s building a more responsible future.
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Tesla Full Self-Driving likely to expand to yet another Asian country
“We are aiming for implementation in 2026. [We are] doing everything in our power [to achieve this],” Richi Hashimoto, president of Tesla’s Japanese subsidiary, said.
Tesla Full Self-Driving is likely to expand to yet another Asian country, as one country seems primed for the suite to head to it for the first time.
The launch of Full Self-Driving in yet another country this year would be a major breakthrough for Tesla as it continues to expand the driver-assistance program across the world. Bureaucratic red tape has held up a lot of its efforts, but things are looking up in some regions.
Tesla is poised to transform Japan’s roads with Full Self-Driving (FSD) technology by 2026.
Richi Hashimoto, president of Tesla’s Japanese subsidiary, announced the ambitious timeline, building on successful employee test drives that began in 2025 and earned positive media reviews. Test drives, initially limited to the Model 3 since August 2025, expanded to the Model Y on March 5.
Once regulators approve, Over-the-Air (OTA) software updates could activate FSD across roughly 40,000 Teslas already on Japanese roads. Japan’s orderly traffic and strict safety culture make it an ideal testing ground for autonomous driving.
Hashimoto said:
“We are aiming for implementation in 2026. [We are] doing everything in our power [to achieve this].”
The push aligns with Hashimoto’s leadership, which has been credited for Tesla’s sales turnaround.
In 2025, Tesla delivered a record 10,600 vehicles in Japan — a nearly 90% jump from the prior year and the first time exceeding 10,000 units annually.
BREAKING 🇯🇵 FSD IS LIKELY LAUNCHING IN JAPAN IN 2026 🚨
Richi Hashimoto, President of Tesla’s Japanese subsidiary, stated: “We are aiming for implementation in 2026” and added that they are “doing everything in our power” to achieve this 🔥
Test drives in Japan began in August… pic.twitter.com/jkkrJLszXN
— Ming (@tslaming) March 5, 2026
The strategy shifted from online-only sales to adding 29 physical showrooms in high-traffic malls, plus staff training and attractive financing offers launched in January 2026. Tesla also plans to expand its Supercharger network to over 1,000 points by 2027, boosting accessibility.
This Japanese momentum reflects Tesla’s broader international expansion. In Europe, Giga Berlin produced more than 200,000 vehicles in 2025 despite a temporary halt, supplying over 30 markets with plans for sequential production growth in 2026 and battery cell manufacturing by 2027.
While regional EV sales faced headwinds, the factory remains a cornerstone for Model Y deliveries across the continent.
In Asia, Giga Shanghai continues to be recognized as Tesla’s powerhouse. China, the company’s largest market, saw January 2026 deliveries from the plant rise 9 percent year-over-year to 69,129 units, with affordable new models expected later this year.
FSD advancements, already progressing in the U.S. and South Korea, are slated for Europe and further Asian rollout, complementing plans to expand Cybercab and Optimus to new markets as well.
With OTA-enabled autonomy on the horizon and retail strategies paying dividends, Tesla is strengthening its footprint from Tokyo showrooms to Berlin assembly lines and Shanghai exports. As Hashimoto continues to push Tesla forward in Japan, the company’s global vision for sustainable, self-driving mobility gains traction across Europe and Asia.
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Tesla ships out update that brings massive change to two big features
“This change only updates the name of certain features and text in your vehicle,” the company wrote in Release Notes for the update, “and does not change the way your features behave.”
Tesla has shipped out an update for its vehicles that was caused specifically by a California lawsuit that threatened the company’s ability to sell cars because of how it named its driver assistance suite.
Tesla shipped out Software Update 2026.2.9 starting last week; we received it already, and it only brings a few minor changes, mostly related to how things are referenced.
“This change only updates the name of certain features and text in your vehicle,” the company wrote in Release Notes for the update, “and does not change the way your features behave.”
The following changes came to Tesla vehicles in the update:
- Navigate on Autopilot has now been renamed to Navigate on Autosteer
- FSD Computer has been renamed to AI Computer
Tesla faced a 30-day sales suspension in California after the state’s Department of Motor Vehicles stated the company had to come into compliance regarding the marketing of its automated driving features.
The agency confirmed on February 18 that it had taken a “corrective action” to resolve the issue. That corrective action was renaming certain parts of its ADAS.
Tesla discontinued its standalone Autopilot offering in January and ramped up the marketing of Full Self-Driving Supervised. Tesla had said on X that the issue with naming “was a ‘consumer protection’ order about the use of the term ‘Autopilot’ in a case where not one single customer came forward to say there’s a problem.”
This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.
Sales in California will continue uninterrupted.
— Tesla North America (@tesla_na) December 17, 2025
It is now compliant with the wishes of the California DMV, and we’re all dealing with it now.
This was the first primary dispute over the terminology of Full Self-Driving, but it has undergone some scrutiny at the federal level, as some government officials have claimed the suite has “deceptive” names. Previous Transportation Secretary Pete Buttigieg was one of those federal-level employees who had an issue with the names “Autopilot” and “Full Self-Driving.”
Tesla sued the California DMV over the ruling last week.
Tesla wins another award critics will absolutely despise
Tesla Full Self-Driving likely to expand to yet another Asian country
