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China formally adds Tesla Gigafactory 3 area to Shanghai’s Free-Trade Zone

The Tesla Gigafactory 3 site as of July 2019. (Credit: Jason Yang/YouTube)

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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. 

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“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. 

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Starlink powers Europe’s first satellite-to-phone service with O2 partnership

The service initially supports text messaging along with apps such as WhatsApp, Facebook Messenger, Google Maps and weather tools.

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Credit: SpaceX

Starlink is now powering Europe’s first commercial satellite-to-smartphone service, as Virgin Media O2 launches a space-based mobile data offering across the UK.

The new O2 Satellite service uses Starlink’s low-Earth orbit network to connect regular smartphones in areas without terrestrial coverage, expanding O2’s reach from 89% to 95% of Britain’s landmass.

Under the rollout, compatible Samsung devices automatically connect to Starlink satellites when users move beyond traditional mobile coverage, according to Reuters.

The service initially supports text messaging along with apps such as WhatsApp, Facebook Messenger, Google Maps and weather tools. O2 is pricing the add-on at £3 per month.

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By leveraging Starlink’s satellite infrastructure, O2 can deliver connectivity in remote and rural regions without building additional ground towers. The move represents another step in Starlink’s push beyond fixed broadband and into direct-to-device mobile services.

Virgin Media O2 chief executive Lutz Schuler shared his thoughts about the Starlink partnership. “By launching O2 Satellite, we’ve become the first operator in Europe to launch a space-based mobile data service that, overnight, has brought new mobile coverage to an area around two-thirds the size of Wales for the first time,” he said.

Satellite-based mobile connectivity is gaining traction globally. In the U.S., T-Mobile has launched a similar satellite-to-cell offering. Meanwhile, Vodafone has conducted satellite video call tests through its partnership with AST SpaceMobile last year.

For Starlink, the O2 agreement highlights how its network is increasingly being integrated into national telecom systems, enabling standard smartphones to connect directly to satellites without specialized hardware.

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Elon Musk’s Starbase, TX included in $84.6 million coastal funding round

The funds mark another step in the state’s ongoing beach restoration and resilience efforts along the Gulf Coast.

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Credit: SpaceX/X

Elon Musk’s Starbase, Texas has been included in an $84.6 million coastal funding round announced by the Texas General Land Office (GLO). The funds mark another step in the state’s ongoing beach restoration and resilience efforts along the Gulf Coast.

Texas Land Commissioner Dawn Buckingham confirmed that 14 coastal counties will receive funding through the Coastal Management Program (CMP) Grant Cycle 31 and Coastal Erosion Planning and Response Act (CEPRA) program Cycle 14. Among the Brownsville-area recipients listed was the City of Starbase, which is home to SpaceX’s Starship factory.

“As someone who spent more than a decade living on the Texas coast, ensuring our communities, wildlife, and their habitats are safe and thriving is of utmost importance. I am honored to bring this much-needed funding to our coastal communities for these beneficial projects,” Commissioner Buckingham said in a press release

“By dedicating this crucial assistance to these impactful projects, the GLO is ensuring our Texas coast will continue to thrive and remain resilient for generations to come.”

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The official Starbase account acknowledged the support in a post on X, writing: “Coastal resilience takes teamwork. We appreciate @TXGLO and Commissioner Dawn Buckingham for their continued support of beach restoration projects in Starbase.”

The funding will support a range of coastal initiatives, including beach nourishment, dune restoration, shoreline stabilization, habitat restoration, and water quality improvements.

CMP projects are backed by funding from the National Oceanic and Atmospheric Administration and the Gulf of Mexico Energy Security Act, alongside local partner matches. CEPRA projects focus specifically on reducing coastal erosion and are funded through allocations from the Texas Legislature, the Texas Hotel Occupancy Tax, and GOMESA.

Checks were presented in Corpus Christi and Brownsville to counties, municipalities, universities, and conservation groups. In addition to Starbase, Brownsville-area recipients included Cameron County, the City of South Padre Island, Willacy County, and the Willacy County Navigation District.

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The Boring Company wins key approval for Nashville Music City Loop

The approval allows The Boring Company to use state-owned right-of-way along Tennessee’s highway system.

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the boring company's vegas loop entrance
(Credit: Sam Morris, LVCVA/Las Vegas News Bureau)

Tennessee Gov. Bill Lee announced that the Tennessee Department of Transportation (TDOT) and the Federal Highway Administration (FHWA) have jointly approved The Boring Company’s lease application and enhanced grading permit for the Music City Loop.

The approval allows The Boring Company to use state-owned right-of-way along Tennessee’s highway system, clearing a key hurdle for the privately funded tunnel project that aims to connect downtown Nashville to Nashville International Airport in approximately eight minutes, the Office of the TN Governor wrote in a press release.

“Tennessee continues to lead the nation in finding innovative solutions to accommodate growth, and in partnership with The Boring Company, we are exploring possibilities we couldn’t achieve on our own,” Gov. Lee said in a statement.

“The Boring Company is grateful for the leadership and hard work of federal, state, and local agencies in bringing this project to a shovel-ready point,” The Boring Company President Steve Davis said. “Music City Loop will be a safe, fast, and fun public transportation system, and we are excited to build it in Nashville.”

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With lease and permitting approvals secured, The Boring Company will move forward with the Loop system’s construction immediately. The first segment of the Loop system is expected to be operational by the end of the year.

The Music City Loop will run beneath state-owned roadways and is designed to connect downtown Nashville to the airport, as well as lower Broadway to West End. The project will be 100% privately funded.

“The Music City Loop shows what’s possible when we leverage private-sector innovation and American ingenuity to solve transportation challenges,” said U.S. Transportation Secretary Sean Duffy. “TDOT’s lease approval will help advance this ambitious project as we work to reduce congestion and make travel more seamless for the American people.”

The Boring Company described the Loop as an all-electric, zero-emissions, high-speed underground transportation system that will meet or exceed safety standards. The Vegas Loop, for one, earned a 99.57% safety and security rating from the DHS and the TSA, the highest score ever awarded to any transportation system.

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