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[Updated] Tesla eyeing Shanghai, China for $9 billion production facility
Tesla Motors has reportedly signed a non-binding memo of understanding with Jinqiao Group, a government-owned company on building its production facilities in Shanghai. “This would be a major win for Tesla and Shanghai,” said Steve Man, an auto analyst at Bloomberg Intelligence. “The investment will probably include a nationwide dealership network, Superchargers, R&D center and potentially a second Gigafactory.”
Updated June 21 @11:50am PDT: According to Reuters, Shanghai Jinqiao Export Processing Zone Development Co said its parent company Jinqiao Group had not signed an agreement of any kind with the U.S. automaker, in response to a Bloomberg report that the two sides had signed a memorandum of understanding.
Foreign automakers that want to manufacture cars in China have to do so through joint ventures. The foreign company is allowed to own up to 50% of the enterprise. Cities and regional governments often compete for such investments, which can invigorate the local economy and bring much needed jobs to the area. The cities of Suzhou and Hefei are also actively trying to lure investment from Tesla, according to the source, but the agreement with Jinqiao gives Shanghai an edge over other cities for the moment.
The Shanghai based joint venture would reportedly have a total investment of $9 billion, with each party putting in half. The contribution from Jinqiao would be mostly in the form of real estate, according to the source. Any cars Tesla manufactures in China with a qualified local partner would be exempt from the Chinese 25% import duty. Avoiding that duty would make Tesla’s vehicles highly competitive with other luxury offerings from Audi and BMW.
Shanghai is a financial and manufacturing center as well as one of the world’s busiest seaports. It is already an automobile manufacturing hub and is home to SAIC Motor Corp, which has joint ventures with General Motors and Volkswagen.
Khobi Brooklyn, a Tesla spokeswoman, said the company doesn’t comment on “rumor and speculation.” Calls to Jinqiao Group went unanswered. The Shanghai Jinqiao Economic and Technological Development Zone, a government body overseeing the area, didn’t respond to a faxed request from Bloomberg for comment. A spokeswoman for the Shanghai municipal government would not confirm or deny the negotiations, which are private at this point.
Shanghai has excellent rail connections with the rest of China. It is also well positioned to export cars manufactured in the area to other countries in Asia. There is no word on which vehicles Tesla would manufacture in China. Elon Musk has said on more than one occasion that Tesla plans on making the Model 3 in China, but has never mentioned whether the Model S and Model X might be made there as well.
Source:Bloomberg
Elon Musk dismissed reports claiming SpaceX had placed a massive order for NVIDIA GPUs worth $52 billion. The denial came hours after Taiwanese media, citing unnamed industry sources, reported that SpaceX planned to acquire approximately 13,000 AI server racks, equating to roughly 1 million GB300 GPUs, from Foxconn.
Each rack was estimated at around $4 million, with deliveries potentially starting in late 2025.
The story suggested this would mark SpaceX’s first major foray into Foxconn-manufactured NVIDIA hardware, breaking from suppliers like Supermicro and Dell. Musk responded bluntly on X:
This is fake news
— Elon Musk (@elonmusk) July 20, 2026
Despite the denial, the rumored scale aligns with SpaceX’s explosive growth in AI infrastructure. NVIDIA’s GB300 (successor to the GB200 NVL) racks deliver unprecedented performance for large-scale training and inference. A $52 billion commitment would dwarf most corporate AI budgets and provide the compute muscle needed for frontier models.
SpaceX already operates gigawatt-scale terrestrial clusters like Colossus in Memphis, Tennessee, and has monetized them aggressively through leasing deals.
SpaceX’s newest Starmind will make earth data centers obsolete
Major customers include Anthropic (paying ~$1.25 billion monthly for 220,000+ GPUs), Google (~$920 million monthly for 110,000 GPUs), and Reflection AI. These arrangements are projected to generate tens of billions in annual revenue, far outpacing traditional SpaceX businesses.
Such an investment would fuel internal AI efforts, particularly Grok models under the integrated SpaceXAI division, while supporting ambitious orbital data center plans. SpaceX envisions launching thousands of AI-optimized satellites powered by solar energy and cooled in space, bypassing terrestrial power and land constraints.
This “Starmind” constellation could position the company as a leader in space-based computing.
SpaceX as an Emerging AI Powerhouse
Once primarily known for reusable rockets and Starlink satellite internet, SpaceX has transformed into a multifaceted AI player.
The 2026 acquisition of xAI integrated Grok development directly into the company. Starlink’s low-latency global network complements massive compute clusters, enabling efficient data flow for training and serving AI models.
Musk has long argued that AI scaling demands solutions beyond Earth, citing things like real estate and electricity limits on the ground.
While the Foxconn deal may not be in the cards, SpaceX’s trajectory is continuing on the path of blending aerospace engineering with hyperscale AI to dominate both launches and intelligence infrastructure.
Elon Musk shed more details on the upcoming improvements to Tesla’s Full Self-Driving suite, specifically one that the CEO mentioned last week, which should help owners see fewer interventions.
Last week, Musk hinted that one major improvement that Tesla planned to roll out to Full Self-Driving users was the car’s ability “to remember your specific interventions and match each person’s individual preferences.”
Elon Musk says your Tesla will start to learn your individual preferences
This small bit of detail was linked to a post from Tesla community member Whole Mars, who said that FSD’s tendency to exit the carpool lane, a feature that owners can turn on but at times the car will disregard.
It sounds like, based on Musk’s two responses since that original post, it is safe to say the things FSD will start to remember are wide-ranging. However, it seems the biggest differences will be noticed with parking performance, which Musk continues to mention.
Highway Lane Preferences
The initial post Musk mentioned, with these new remembered preferences soon to arrive for Tesla owners everywhere, was the Carpool/Express Lane.
Tesla has a setting in the FSD menu that lets drivers enable HOV Lane travel. However, the car won’t always stay in that suggested or preferred lane.
The car will start to remember your specific interventions and match each person’s individual preferences
— Elon Musk (@elonmusk) July 18, 2026
Some owners have also complained of left lane camping, an illegal maneuver in at least some states. Cruising in the passing lane has resulted in tickets for some, as it is illegal in over 30 states in the U.S.
Tesla did not confirm if these preferences would also be included in new FSD behaviors, but it would certainly help move the company toward fewer interventions.
Parking Preferences
This seems to be the real focus of the entire operation, as Musk stated several weeks ago that parking was overwhelmingly the most frequent reason for interventions.
The major issue with parking is not necessarily the parking “performance,” as FSD is generally good at parking. It definitely has its issues; we’ve recorded plenty of them, including this one as recent as last week:
Yeah it seems like FSD v14.3.5 is having some issues with parking early on https://t.co/Bw5ULfVmDq pic.twitter.com/RHdpjOEpIo
— TESLARATI (@Teslarati) July 13, 2026
However, the changes coming are more about preferences, meaning where you park and how your car enters the spot, either pulling in or backing in. Owners have also reported that pulling into the correct driveway is a relatively rare thing for FSD, something else that needs to be confronted.
Musk basically confirmed that all of these things would be part of Tesla’s plan to address driver preferences with FSD:
Yes
— Elon Musk (@elonmusk) July 20, 2026
It’s obvious there is something big coming with FSD, and the company’s focus seems to be eliminating any intervention that would be related to preferences. This is probably the biggest bottleneck between Tesla and being fully autonomous. Critical interventions do occur, but they are much less frequent.
The only time a driver should be taking over is because of a critical intervention; this seems to be the goal of Tesla right now.
This all seems to be a priority as Tesla continues to move closer to the prospect of unsupervised driving.
Elon Musk said today on X that Teslas will start to learn your individual preferences. This is something that he seemed to hint toward earlier this month when he said parking was by far the biggest reason drivers intervene with Full Self-Driving.
Musk made the comment in response to notable Tesla influencer Whole Mars, who said that his vehicle will sometimes disobey the settings he has enabled for his car. He responded to the post, stating that “The car will start to remember your specific interventions and match each person’s individual preferences.”
The car will start to remember your specific interventions and match each person’s individual preferences
— Elon Musk (@elonmusk) July 18, 2026
This is something that could be perhaps one of the biggest ways Tesla could minimize or even work closer toward eliminating interventions altogether. While FSD does a lot of things really well, many people intervene a vast majority of the time not due to major or critical safety errors.
Instead, many take over because the car is doing something that they do not like as a preference; it might park in a parking spot that is not preferred by the driver, it might linger too long in the left lane on the highway (a personal favorite), or it could even take a route that the driver does not like.
These all lead to interventions, but they are not triggered by a major safety issue. Instead, it’s just preference.
READ OUR REVIEW OF TESLA’S LATEST FSD VERSION:
Tesla Full Self-Driving v14.3.5 Early Impressions: new features and early performance
If Teslas could start to learn the personal preferences of the person who owns them, interventions will truly begin to be less frequent. Some of this is already pretty evident, in my opinion. Teslas use a neural network to learn behaviors and accumulate data to improve performance.
For months now, we’ve tracked FSD’s performance at “Except Right Turn” stop signs, something that is very common in Pennsylvania, but many of our readers located in other parts of the U.S. have never heard of. FSD handles one Except Right Turn stop sign very well, one that I travel past frequently. Others that I do not navigate through as often do not have as confident a performance. It seems like the cars might already be doing this to an extent.
🚨 Tesla Full Self-Driving v14.3 proceeds through an Except Right Turn Stop Sign pic.twitter.com/YemRSlens7
— TESLARATI (@Teslarati) April 8, 2026
That example is also for something that is a street sign and not necessarily a driver preference; however, I still feel it is worth mentioning because it only handles that commonly passed Except Right Turn stop sign with true confidence. Others it still seems to struggle with.
This could be one of Tesla’s big moves toward full autonomy, and it could be a pathway to truly unsupervised driving. Every day, millions of cars on the road travel at a human driver’s personal preferences with no incident. Why can’t autonomous vehicles still cater to a passenger’s preferences while being autonomous? Tesla seems to have the idea that it would be possible.
Elon Musk dispels $52 billion SpaceX-NVIDIA GPU deal: ‘Fake news’
Elon Musk sheds details on Tesla FSD’s upcoming improvements
