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China formally adds Tesla Gigafactory 3 area to Shanghai’s Free-Trade Zone
The Chinese government has stated that it is formally expanding Shanghai’s Free-Trade Zone (FTZ) to include the Lingang area, which hosts the site of Tesla’s Gigafactory 3. The update comes amidst a set of new tax incentives and import duty exemptions, which are being rolled out amid China’s continued trade tensions with the United States.
The plan to expand the FTZ was revealed by the State Council, China’s cabinet, in an announcement on Tuesday. The addition of the Lingang area, which is around the same size as the Hong Kong special administrative region, will roughly double the size of the Free Trade Zone.
China’s vice-commerce minister Wang Shouwen, who is among the country’s delegation in its trade talks with Washington, highlighted Beijing’s commitment to the expansion of the FTZ. “The expansion of the Shanghai FTZ is also an important step to demonstrate China’s clear stand for all-round opening up in the new era and its active role in guiding the healthy development of economic globalization,” Wang said.
With trade tensions with the United States hitting 13 months to date, Wang noted that Beijing would not hesitate to open its markets further, irrespective of developments in China’s trade ties with other countries. Speaking about these developments to the South China Morning Post, Shanghai vice-mayor Chen Yin noted that duties would also be deferred, or in some instances, not even collected, on certain products that are shipped through the new Lingang area.
“Goods from abroad entering the fenced customs areas of the new area will be under bonded or tax exemptions,” Chen said.
The formal addition of the Lingang area to Shanghai’s Free Trade Zone has been expected for some time, especially after Chinese President Xi Jinping stated last November that the FTZ would be expanded as a way for the country to deepen economic reforms and open up its market. Cao Hua, a partner at Unity Asset Management, a private equity firm, explained this in a statement.
“It is a vast area that can accommodate mega-manufacturing projects, commercial complexes, and entertainment facilities. The announcement about its inclusion in the FTZ is not a surprise, but it boils down to whether land resources and financial capital will be used effectively to turn Lingang into a boomtown,” Cao noted.
The formal inclusion of the Lingang area bodes well for Tesla, whose electric car manufacturing facility is nearing completion. The progress of Gigafactory 3’s construction has been rapid, with local media reports stating that trial Model 3 production runs could begin as early as September, ramping to a manufacturing rate of 3,000 vehicles per week once operations are fully underway.
Elon Musk
Elon Musk’s Grok records lowest hallucination rate in AI reliability study
Grok achieved an 8% hallucination rate, 4.5 customer rating, 3.5 consistency, and 0.07% downtime, resulting in an overall risk score of just 6.
A December 2025 study by casino games aggregator Relum has identified Elon Musk’s Grok as one of the most reliable AI chatbots for workplace use, boasting the lowest hallucination rate at just 8% among the 10 major models tested.
In comparison, market leader ChatGPT registered one of the highest hallucination rates at 35%, just behind Google’s Gemini, which registered a high hallucination rate of 38%. The findings highlight Grok’s factual prowess despite the AI model’s lower market visibility.
Grok tops hallucination metric
The research evaluated chatbots on hallucination rate, customer ratings, response consistency, and downtime rate. The chatbots were then assigned a reliability risk score from 0 to 99, with higher scores indicating bigger problems.
Grok achieved an 8% hallucination rate, 4.5 customer rating, 3.5 consistency, and 0.07% downtime, resulting in an overall risk score of just 6. DeepSeek followed closely with 14% hallucinations and zero downtime for a stellar risk score of 4. ChatGPT’s high hallucination and downtime rates gave it the top risk score of 99, followed by Claude and Meta AI, which earned reliability risk scores of 75 and 70, respectively.
Why low hallucinations matter
Relum Chief Product Officer Razvan-Lucian Haiduc shared his thoughts about the study’s findings. “About 65% of US companies now use AI chatbots in their daily work, and nearly 45% of employees admit they’ve shared sensitive company information with these tools. These numbers show well how important chatbots have become in everyday work.
“Dependence on AI tools will likely increase even more, so companies should choose their chatbots based on how reliable and fit they are for their specific business needs. A chatbot that everyone uses isn’t necessarily the one that works best for your industry or gives accurate answers for your tasks.”
In a way, the study reveals a notable gap between AI chatbots’ popularity and performance, with Grok’s low hallucination rate positioning it as a strong choice for accuracy-critical applications. This was despite the fact that Grok is not used as much by users, at least compared to more mainstream AI applications such as ChatGPT.
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Tesla (TSLA) receives “Buy” rating and $551 PT from Canaccord Genuity
He also maintained a “Buy” rating for TSLA stock over the company’s improving long-term outlook, which is driven by autonomy and robotics.
Canaccord Genuity analyst George Gianarikas raised his Tesla (NASDAQ:TSLA) price target from $482 to $551. He also maintained a “Buy” rating for TSLA stock over the company’s improving long-term outlook, which is driven by autonomy and robotics.
The analyst’s updated note
Gianarikas lowered his 4Q25 delivery estimates but pointed to several positive factors in the Tesla story. He noted that EV adoption in emerging markets is gaining pace, and progress in FSD and the Robotaxi rollout in 2026 represent major upside drivers. Further progress in the Optimus program next year could also add more momentum for the electric vehicle maker.
“Overall, yes, 4Q25 delivery expectations are being revised lower. However, the reset in the US EV market is laying the groundwork for a more durable and attractive long-term demand environment.
“At the same time, EV penetration in emerging markets is accelerating, reinforcing Tesla’s potential multi‑year growth runway beyond the US. Global progress in FSD and the anticipated rollout of a larger robotaxi fleet in 2026 are increasingly important components of the Tesla equity story and could provide sentiment tailwinds,” the analyst wrote.
Tesla’s busy 2026
The upcoming year would be a busy one for Tesla, considering the company’s plans and targets. The autonomous two-seat Cybercab has been confirmed to start production sometime in Q2 2026, as per Elon Musk during the 2025 Annual Shareholder Meeting.
Apart from this, Tesla is also expected to unveil the next-generation Roadster on April 1, 2026. Tesla is also expected to start high-volume production of the Tesla Semi in Nevada next year.
Apart from vehicle launches, Tesla has expressed its intentions to significantly ramp the rollout of FSD to several regions worldwide, such as Europe. Plans are also underway to launch more Robotaxi networks in several more key areas across the United States.
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Waymo sues Santa Monica over order to halt overnight charging sessions
In its complaint, Waymo argued that its self-driving cars’ operations do not constitute a public nuisance, and compliance with the city’s order would cause the company irreparable harm.
Waymo has filed a lawsuit against the City of Santa Monica in Los Angeles County Superior Court, seeking to block an order that requires the company to cease overnight charging at two facilities.
In its complaint, Waymo argued that its self-driving cars’ operations do not constitute a public nuisance, and compliance with the city’s order would cause the company irreparable harm.
Nuisance claims
As noted in a report from the Los Angeles Times, Waymo’s two charging sites at Euclid Street and Broadway have operated for about a year, supporting the company’s growing fleet with round-the-clock activity. Unfortunately, this has also resulted in residents in the area reportedly being unable to sleep due to incessant beeping from self-driving taxis that are moving in and out of the charging stations around the clock.
Frustrated residents have protested against the Waymos by blocking the vehicles’ paths, placing cones, and “stacking” cars to create backups. This has also resulted in multiple calls to the police.
Last month, the city issued an order to Waymo and its charging partner, Voltera, to cease overnight operations at the charging locations, stating that the self-driving vehicles’ activities at night were a public nuisance. A December 15 meeting yielded no agreement on mitigations like software rerouting. Waymo proposed changes, but the city reportedly insisted that nothing would satisfy the irate residents.
“We are disappointed that the City has chosen an adversarial path over a collaborative one. The City’s position has been to insist that no actions taken or proposed by Waymo would satisfy the complaining neighbors and therefore must be deemed insufficient,” a Waymo spokesperson stated.
Waymo pushes back
In its legal complaint, Waymo stated that its “activities at the Broadway Facilities do not constitute a public nuisance.” The company also noted that it “faces imminent and irreparable harm to its operations, employees, and customers” from the city’s order. The suit also stated that the city was fully aware that the Voltera charging sites would be operating around the clock to support Waymo’s self-driving taxis.
The company highlighted over one million trips in Santa Monica since launch, with more than 50,000 rides starting or ending there in November alone. Waymo also criticized the city for adopting a contentious strategy against businesses.
“The City of Santa Monica’s recent actions are inconsistent with its stated goal of attracting investment. At a time when the City faces a serious fiscal crisis, officials are choosing to obstruct properly permitted investment rather than fostering a ‘ready for business’ environment,” Waymo stated.
Elon Musk’s Grok records lowest hallucination rate in AI reliability study
Tesla (TSLA) receives “Buy” rating and $551 PT from Canaccord Genuity
