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Tesla is breaking the 'Made-in-China' stereotype with the GF3-made Model 3
Elon Musk and the Tesla team revel in busting stereotypes. This was evident in the Cybertruck’s unveiling, where Chief Designer Franz von Holzhausen literally took a sledgehammer to emphasize the point that EVs can be stronger than conventional rough-and-tough vehicles. In China, Tesla is doing the same thing, but this time, the electric car maker is breaking a stereotype that has been around for a long time: the myth of bad “Made in China” quality.
A study from the Iowa State University reported via Futurity noted that before the words “Made in China” were perceived in the United States as a reference to low-cost and low-quality goods, the perception for Chinese-made products was actually quite positive. Gang (Kevin) Han, an associate professor at Iowa State University’s Greenlee School of Journalism and Communication, noted that things started changing when China became the manufacturing powerhouse that it is today.
“People really enjoyed products from China. They viewed products, such as tea, furniture, or dishware, as unique. It was a quality product and there was a cultural value. But when China became a world factory and produced so many items for so many brands, people changed their views,” he said, adding that the prominent media coverage about issues with China-made products also added to the stereotype. “We see a lot of framed messages in these stories and receive the message subconsciously,” Han remarked.
These stereotypes were promptly invoked by Tesla critics as soon as the electric car maker announced its plans to build a factory in China. Over the course of Gigafactory 3’s construction, it was not rare to find a Tesla critic mocking the alleged quality issues that would most likely plague the MIC Model 3. This point, as with many criticisms thrown at Tesla, appears to have been taken as a challenge by the electric car maker’s team in China. When the company invited the media to experience the Made-in-China Model 3 for the first time, Tesla was serious. It wanted to break another stereotype. And they did.
Reviews of the Made-in-China Model 3 were notably positive, even if the vehicles being produced in the Shanghai-based site are only the Standard Range Plus variants of the all-electric sedan. Despite not having Tesla’s stunning white interior or more fancy 19″ Sports Wheels, the locally-made Model 3s were built with near-surgical precision. The vehicles’ panel gaps were meticulously aligned, their trimmings fit to a tee. In the United States, former GM executive Bob Lutz eventually praised Tesla’s build quality for the Model 3, but only after Tesla mastered the production of the vehicle, which took over a year to achieve. The MIC Model 3 units in China were first production cars, which means that they’ll likely only get better with time.
It’s a bit humorous, but Tesla China’s press images for the MIC Model 3 featured numerous close-ups of the locally-made electric car, and many of them showcased the cars’ smooth paint and consistent panel lines, aspects of the car that proved difficult for the company in the United States. In a way, Tesla China’s MIC Model 3 press images seem to be a direct response against the stereotype, proving that any vehicle made in Shanghai’s Gigafactory 3 matches the quality of a car built in Fremont.
Perhaps most telling of these observations came from local auto journalists who were among the first to review the locally-made Model 3. Tencent Auto editor 常岩, who happens to be a Model 3 owner himself, was invited to check out the locally-made version of his electric car. Much to the auto editor’s surprise, he noted that the build quality of the Gigafactory 3-made Model 3 was actually better than his car, which was imported from the United States. With this conclusion, the auto journalist noted that Tesla’s MIC Model 3 will likely prove successful in the Chinese market, as it offers great quality and features for its price. The locally-made Model 3 is proudly Made in China, and it is just as good, if not better, than other Model 3 in the market.
Tesla’s Made-in-China Model 3 is poised to make waves in the Chinese EV segment, with the massive Shanghai-based Gigafactory 3 now mass manufacturing the all-electric sedan. Recent flyovers of the Gigafactory 3 complex have revealed hundreds of MIC Model 3 just ready for delivery. Car carrier trucks loaded with Model 3s have also been photographed leaving the Gigafactory 3 premises. With these sightings in mind, it may only be a matter of time before deliveries of the locally-made electric car begins in the country.
Watch an existing Tesla Model 3 owner review the MIC Model 3 in the video below.
H/T Ray4Tesla/Twitter
Tesla (NASDAQ: TSLA) reports its earnings for Q3 today. Here’s what to expect, as the company will reveal its balance sheet after the market closes on Wednesday.
Tesla already reported deliveries just after Q3 ended, and it demolished Wall Street consensus estimates of roughly 462,000 vehicles. Tesla delivered 486,532 cars in the third quarter, which was a big beat, but was down 2.1 percent from the same quarter last year. Energy storage deployments were 13.7 GWh, up year-over-year.
Tesla showrooms picked clean ahead of Q3 end as demand looks strong
For the quarter, analysts have already compiled their predictions for what Tesla will report this afternoon:
- Total Revenues: $28.34B
- Non-GAAP EPS: $0.43
- Operating Margin: 2.5%
- Operating Income: $721M
- Free Cash Flow: ~-$4.51B
Here are a few things we are looking forward to hearing about on the call:
Automotive Gross Margin and Overall Profitability
This was 16.3 percent in Q2, down from 19.2 percent in Q1, and was impacted by warranty charges and some fading regulatory credits. Consensus implies overall gross margin near 18 percent, but a miss here would potentially reinforce concerns about pricing pressure on its vehicles.
Pay attention to energy storage margins as well, especially since Tesla missed GWh expectations, although it was still a strong quarter.
Robotaxi/Cybercab, Unsupervised FSD, and Optimus Progress
The Say questions from retail investors usually focus on these types of projects, and this quarter is no different. Scaling the Cybercab fleet beyond Austin amid the open NHTSA safety review, timeline for Unsupervised FSD in customer cars, Robotaxi unit economics, and Optimus cost per unit plus when it could start generating revenue, are all things to be looking for.
Any concrete timelines or regulatory path details will likely move the stock more than the near-term numbers. SpaceX merger speculation, which was detailed during SpaceX’s earnings call last night, may also surface, although the key details were shared last night.
Elon Musk just confirmed the Tesla and SpaceX merger step everyone was waiting for
Say Investor Questions
- How does the Cybercab fleet scale past Austin, and what’s the regulatory path outside Texas given NHTSA’s open safety review?
- When can we anticipate FSD unsupervised in customer cars?
- When will the CyberCab be available for customer purchase/ownership?
- What’s the unit economics per paid robotaxi mile, and how does it compare to the thirty-cent target?
- Tesla has acknowledged that HW3 vehicles cannot support unsupervised FSD. When will owners know whether they can upgrade their hardware for free, and when will Tesla provide a clear plan?
The full Earnings Call will be streamed this evening after market close around 5 p.m. this evening.
SpaceX confirmed the date of Starship’s 15th launch window with some massive ambitions for the mission, as it will attempt to catch Ship for the first time.
CEO Elon Musk confirmed during SpaceX’s Earnings Call last night on October 20 that it would launch Starship for its 15th test flight in November, and there are some incredible things the company wants to try, making it perhaps the most groundbreaking launch in the program’s history.
SpaceX delivers blockbuster Q3 results as Super Intelligence segment booms
The most major development of the call was SpaceX’s intention to catch Ship alongside catching the Super Heavy Booster, something that has happened in the past. SpaceX showed an animation of the Ship catch, which will be done on the launch tower’s chopsticks:
SpaceX has released a new Starship tower catch animation for the upcoming Flight 15! https://t.co/kStn01Da8u
— Truthful🛰️ (@Truthful_ast) October 20, 2026
This monumental goal is to catch both the Ship and Booster in a dual-catch scenario, an incredible feat since SpaceX has never been able to reuse a Ship after launch. Musk said it would be “the first time that an orbital launch vehicle has been fully recovered,” and said it would be a “profound technology milestone.”
Musk said the odds of success on this first Ship catch attempt are “more likely than not,” but SpaceX is ultimately prepared for more tries moving forward. The SpaceX frontman said that, starting next year, Starship would have a “steady stream” of flights through the end of the year.
The cadence will accelerate in 2027, with Musk stating the company plans to target weekly flights in the first half of 2027 and twice-weekly by year-end.
The Flight 15 attempt follows that of Flight 14, which took off in late September and was Starship’s first orbital mission. It deployed 26 Starlink V3 satellites, accomplished a controlled ocean splashdown of both stages, and shed more light on potential challenges for the program moving forward.
As of now, the Starship program is firing on all cylinders.
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Wall Street analysts rapidly raised price targets on SpaceX (NASDAQ: SPCX) after the company reported a bullish third quarter for 2026 following the market close on October 20. Shares were sent sharply higher in after-hours and premarket trading.
SpaceX posted revenue of $14.6 billion, a 161 percent year-over-year increase that comfortably topped consensus estimates, which fell near $12.7 billion. The company also posted a net profit of $4.4 billion from a prior-year loss, with adjusted EBITDA reaching $8.8 billion.
More price target movement:
🚀 Cantor Fitzgerald lifted its target to $345 from $246 (Overweight).
🚀 Barclays raised its target to $300 from $254 (Overweight).
🚀 Citi increased its target to $240 from $200 (Buy),
🚀 UBS moved to $230 from $210 (Buy)
🚀TD Cowen raised its target to $224 from $200 (Buy).
🚀Morgan Stanley held an Overweight rating with a $300 target.
🚀Other firms also adjusted higher, including Wells Fargo (to $274 from $214) and Clear Street (to $248 from $217). Analysts broadly cited the strong quarterly print, accelerating AI compute expansion, Starlink progress, and Starship milestones as drivers of higher long-term growth and earnings power.— TESLARATI (@Teslarati) October 21, 2026
Its Super Intelligence (AI) division generated roughly $7.6 billion and became the largest revenue contributor, growing nearly 830 percent year-over-year, while the Connectivity segment delivered $5.2 billion on strong subscriber additions that lifted the consumer base to 13.6 million for Starlink.
The Earnings Call proved especially catalytic, as CEO Elon Musk and CFO Bret Johnsen outlined Q1 2027 revenue guidance of $33 billion to $37 billion, which was far above the roughly $22 billion analysts had modeled, alongside fourth-quarter capital-expenditure plans of $35 billion to $40 billion focused on AI compute infrastructure at sites including Memphis and Southaven.
SpaceX delivers blockbuster Q3 results as Super Intelligence segment booms
Management targets 2.5 to 3 gigawatts of nameplate compute capacity by year-end and discussed pathways to 13 gigawatts or more by the end of 2027. Musk described relentless demand from hyperscalers and other customers, with compute pricing supporting payback periods of less than a year and potentially as short as six months.
Additional highlights included Starship’s recent orbital success and V3 satellite deployment, Starlink pricing and enterprise momentum, rapid Grok Bot adoption, spectrum expansion plans, and the formation of special committees to explore a possible combination with Tesla.
These elements prompted a wave of price-target increases:
- JPMorgan more than doubled its target to $500 from $240 while maintaining an Overweight rating.
- Cantor Fitzgerald lifted its target to $345 from $246 (Overweight).
- Barclays raised its target to $300 from $254 (Overweight).
- Citi increased its target to $240 from $200 (Buy),
- UBS moved to $230 from $210 (Buy), and
- TD Cowen raised its target to $224 from $200 (Buy).
- Morgan Stanley held an Overweight rating with a $300 target.
- Other firms also adjusted higher, including Wells Fargo (to $274 from $214) and Clear Street (to $248 from $217). Analysts broadly cited the strong quarterly print, accelerating AI compute expansion, Starlink progress, and Starship milestones as drivers of higher long-term growth and earnings power.
Shares, which closed at $147.79 on October 20, jumped roughly 8 percent in early premarket trading on October 21 as investors digested the results and the newly elevated Street targets.
The average analyst price target has moved higher, which reflects greater conviction in SpaceX’s trajectory across launch, connectivity, and the Super Intelligence business, even as elevated spending remains a point of focus.
Tesla reports Q3 Earnings today: here’s what to expect
SpaceX confirms Starship 15 launch window with massive ambitions
