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Tesla Gigafactory 3 in China to finish initial construction in summer after groundbreaking event

(Photo: 烏瓦/YouTube)

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Elon Musk has arrived in China for the groundbreaking ceremony of Gigafactory 3. Set to be built in Shanghai’s Lingang Industrial Zone, the upcoming facility is expected to produce both batteries and electric cars for the Chinese market. Vehicles that would be produced in Gigafactory 3 include the Model 3 sedan and the Model Y SUV.

Clues about Tesla’s Gigafactory 3 groundbreaking event emerged this weekend, ironically after Tesla’s critics shared information about the route of Elon Musk’s private airplane. By late Sunday (early Monday morning in China), invitations for the event emerged online. Tesla owner-enthusiast @vincent13031925, for one, shared an image of an invitation for the Gigafactory 3 groundbreaking event, forwarded by a Shanghai Tesla Owner’s Group member.

As could be seen in the event’s invitation, guests for the Gigafactory 3 groundbreaking event can check-in as early as 14:30 local time. The event itself is expected to begin around 15:00-15:30 local time.

An invitation for Gigafactory 3. (Photo: vincent13031925/Twitter)

On late Sunday US time, Elon Musk confirmed his presence in China, stating that he was looking forward to the Gigafactory 3 groundbreaking ceremony. Musk also provided some details on the project’s timeline, stating that Tesla is aiming to complete the facility’s initial construction this summer, followed by Model 3 production beginning at the end of the year. High-volume Model 3 production in Gigafactory 3 is expected to start sometime next year. In a follow-up tweet, Musk added that the Model 3 and Model Y produced in the facility would serve the greater China region.  

Prior to Elon Musk’s arrival, Gigafactory 3’s site, an 864,885-square meter plot of land in Shanghai’s Lingang Industrial Zone, has already been seeing a lot of activity. Last month, for example, a perimeter fence around the massive site was completed, paving the way for more work to be done. Shanghai Mayor Ying Yong and Vice Mayor Wu Qing also met with Tesla and its construction partners to encourage them to expedite the buildout of the battery and electric car factory.

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Earlier this month, documents were shared online pointing to Tesla acquiring a construction permit to start building facilities for Gigafactory 3. Granted by the Shanghai Municipal Government, the permit is good for two stages of construction and effective for 180 days, beginning on December 29, 2018. The contractor listed for the project was China Construction Third Engineering Bureau Co., Ltd., a subsidiary of China Construction, a government-owned construction firm.

Interest in Gigafactory 3 appears to be high among China’s upstart workers. During a job fair that Tesla held for the facility at the Lingang Industrial Zone, the company ended up overwhelmed with applications that it was forced to extend its hiring hours. Some applicants interviewed by local media even revealed that they were from faraway cities, and they traveled hours just to get an opportunity to apply for one of the open positions for the upcoming facility.

Stay tuned for more updates as we follow this developing story.

Update on 1:55 p.m., Monday local time (8:55 p.m. Sunday PST). Elon Musk appears to have arrived at Gigafactory 3’s location.

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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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Tesla Cybercab and Semi have more in common than you might think

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Credit: Tesla

Although the two vehicles are built for completely different use cases, Tesla utilized engineering expertise while developing both the Cybercab and Semi to build a thermal architecture that would fit both vehicles. Of course, with some slight revisions.

The development was noted by Lars Moravy and Dan Priestley last week at Tesla’s Semi Handover event in Sparks, Nevada, where the company showed off its dedicated production facility for the Class 8 truck.

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Tesla’s decision to develop one thermal architecture for both the Cybercab and Semi is one of the more revealing engineering choices in the company’s 2026 lineup:

“We designed it at the same time we designed the Cybercab and we said okay we’re going to take our most efficient vehicle and our biggest vehicle and we’re going to take one thermal system and make it work for both.”

Core parts, meaning the compressor, pumps, and heat exchangers, are shared, with only modest changes to cooling-loop sizing and a larger radiator on the truck. The result, they said, is a compressor and thermal stack already proven across millions of miles, delivering “reliability from day one.”

Priestley also highlighted a practical payoff of the indirect design:

“There’s no AC lines, there’s no refrigerant lines…It comes from the factory fully charged, sealed with refrigerant, and it just exchanges coolant. It doesn’t actually run refrigerant up to the front of the vehicle.”

This eliminates potentially leak-prone plumbing that would otherwise require hands-on service, reducing overall uptime and potentially cutting into business margins. The megamanifold runs cabin HVAC and every powertrain heating and cooling loop at once, recapturing waste heat from motors and the battery instead of dumping it the way a diesel engine does.

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The approach is just the latest chapter in a continuing story of stretching thermal solutions across wildly different vehicles. Model Y’s Octovalve evolved into the Super Manifold used on Cybertruck, and later Model S/X refreshes. Cybercab then introduced Supermanifold V3, which Tesla says is 80 percent automated to build and 38 percent more efficient than typical automotive thermal systems.

Tesla has done the same with the 4680 cells, both being utilized in the Cybertruck and Semi, and with heat-pump compressors that Priestley noted were already common across the passenger-car fleet.

Concurrent development of crucial vehicle elements buys scale and reliability that a truck-only thermal system could not match. High-volume passenger car parts are cheaper and more accessible, which can give fleets a sealed, low-maintenance loop of operation from their first day of operation.

For owners and operators, that translates into less energy spent on cabin heat in the colder months, fewer refrigerant-related repairs, and a thermal architecture already stress-tested at passenger-car volumes before the first high-volume Semi left the lines in Nevada.

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Elon Musk weather update tips Tesla Roadster speculation into Plaid Mode

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Credit: Tesla

Tesla CEO Elon Musk certainly tipped off some details of the Tesla Roadster event with a broadening of information regarding the company’s decision to delay the unveiling for two weeks.

For years, people have speculated about what the Roadster will be capable of. While there have been plenty of things said about what it *could* do, we have not seen or been told by Tesla what it will actually be capable of.

However, over the past few days, Tesla’s weather updates have truly pushed the speculation into Plaid Mode, basically all but confirming the car will have some sort of aerial capability — whether that would be hovering or fully flying remains to be seen — but it definitely seems that it will be able to leave the ground intentionally.

“Because this event can only be held outdoors…”

Tesla posted on Monday that it would delay the Roadster event until October 15, and it indicated that it had to do this because the event “can only be held outdoors.”

With the potential SpaceX collaboration to develop cold-gas thrusters that will help the vehicle go airborne, doing this indoors is probably not a safe, or even plausible, possibility.

FAA Airspace Restriction

The FAA gave Tesla a Temporary Flight Restriction (TFR) for 10,000 feet above ground level, much higher than the typical 2,000-foot restrictions that are usually placed at SpaceX’s McGregor, Texas site.

Tesla Roadster event requires restricted airspace, and the FAA obliges

Some have said that this massive increase is due to Tesla’s need to restrict unauthorized drone use for spying on the event.

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Elon Admits High Winds

“Due to high winds, the new Roadster demo is postponed by 2 weeks,” Musk said in a post on X yesterday.

A reply reading, “What’s strong wind got to do with a car demo with four grounded wheels?” was directly below Musk’s post, satirically and sarcastically probing for more details.

All signs are pointing toward an aerial demonstration for the Roadster.

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Tesla snags $30B in fresh credit lines for expanding its biggest projects

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Credit: Grok

Tesla has secured $30 billion in fresh credit lines from Citibank and Wells Fargo in an effort to scale its biggest current projects.

Tesla agreed to a $20 billion three-year delayed-draw term loan facility from Citibank, it announced on Tuesday. Additionally, it signed a five-year, $8 billion revolving credit facility and a $2 billion, 364-day term credit facility with Wells Fargo.

In a filing with the Securities and Exchange Commission (SEC), that it “may draw” from the $20 billion delayed-draw term “from time to time” and “no more than ten times during the 18 months following the closing date.” This loan matures on September 29, 2029.

The five-year revolving facility from Wells Fargo will also be accessed by Tesla “from time to time,” and will become due and payable on September 29, 2031. Tesla can request two separate one-year extensions.

On the $2 billion, 364-day revolving loan, it becomes due and payable on September 28, 2027. Tesla can also increase its additional commitments to an additional $4 billion across the Revolving Facilities. This would increase the total facilities to $14 billion. Tesla said it does not plan to utilize any of these loans in 2026.

Tesla plans to utilize the money to help prop up its ambitions to scale its biggest products, each of which is either in early launch phases or still in development. Of course, we’re talking about Cybercab and Semi, which have launched, and Optimus, which is still under heavy development and working toward initial release.

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All three Tesla products have one thing in common: they’ve all required Tesla to build new manufacturing lines for them.

For the Semi, Tesla built a brand new factory in Sparks, Nevada, adjacent to the Tesla Gigafactory. For Optimus, Tesla sunset Model S and X production at the Fremont Factory, which brought an end to the two flagship models, thus creating manufacturing space for the humanoid robot. Finally, Cybercab is being built at Gigafactory Texas and officially entered production earlier this year.

Tesla Cybercab fleet doubles to well over 100 units

The cash will help Tesla bolster its finances for the continuing development of these products. Tesla said that it forecasts its CapEx to be over $25 billion, up from just over $8.5 billion last year. These loans surely help with that spending.

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