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

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.
Aiming to finish initial construction this summer, start Model 3 production end of year & reach high volume production next year
— Elon Musk (@elonmusk) January 7, 2019
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.
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.
Getting ready for the Tesla China Shanghai Gigafactory groundbreaking ceremony today!! $TSLA #Tesla #China #GF3 #TeslaChina pic.twitter.com/BnZFvspdfS
— vincent (@vincent13031925) January 7, 2019
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.
Update: Shanghai Tesla owners club member reports: Elon Musk just arrived Shanghai GF3 ground breaking ceremony location. $TSLA #Tesla #China #GF3 #TeslaChina pic.twitter.com/Fc2HG1iFvM
— vincent (@vincent13031925) January 7, 2019
Investor's Corner
SpaceX’s biggest earnings test yet lands Tuesday, and Tesla shareholders should be watching
SpaceX reports earnings Tuesday as Wall Street watches AI spending, Starlink growth and Tesla merger
SpaceX reports third quarter results after the market closes Tuesday, with a webcast at 4:30 p.m. ET streamed on X, and Tesla follows a day later. Bloomberg consensus, cited by Pepperstone, calls for revenue of $12.89 billion, adjusted EBITDA of $6.62 billion and adjusted EPS near $0.15. That would be about 65% growth from the second quarter and SpaceX’s first profitable quarter since its IPO. Analysts expect roughly $6.4 billion from AI and $4.9 billion from Starlink, which is projected to reach 14.3 million consumer subscribers. Capital spending is forecast at $19.6 billion, leaving free cash flow near negative $11.6 billion.
The numbers matter because SpaceX has spent months trying to win over a skeptical market. It priced its record IPO at $135, spiked to $225.64, then sank near $105 in early August. Friday’s close of $146.03 sits about 28% below the June high. The Q2 report beat on revenue at $7.8 billion and put Starlink at 12 million subscribers, but $18.4 billion of capex hurt the stock. Since then SpaceX reached orbit on Starship Flight 14 with 26 Starlink V3 satellites, agreed to buy 800 MHz spectrum for about $8 billion as part of its Starlink Mobile push, and signed a fourth compute hosting deal in four months worth roughly $13 billion a year from December. Management is targeting more than 2 gigawatts of compute by year end and a $100 billion annualized revenue run rate. Evercore ISI, which raised its target to $275, said the quarter may be judged more on those targets than the reported figures
All of this sits under the Tesla merger question. Barclays analyst Dan Levy expects an all stock deal in which SpaceX buys Tesla at a premium, using reference values of $2.1 trillion and $1.5 trillion, and said an announcement would need to come by late October or early November to be voted on at Tesla’s December 6 annual meeting. Barclays estimates Musk would hold about 37% of the combined company and 56% of the votes. Musk said in July that combining companies cannot be discussed on an earnings call, but an investor question asking when SpaceX will merge with Tesla is sitting on SpaceX’s Q&A platform, and Teslarati has tracked how the Roadster demo revived the talk.
If a deal happens, Tuesday’s result would effectively set the price Tesla holders would receive. Their shares would convert into SpaceX stock, along with exposure to a company with a heavy investment on AI, while Tesla itself expects 2026 capex above $25 billion. A strong quarter and calmer spending would make that exchange easier to sell. Another round of heavy capex and a falling stock would make it harder.
News
SpaceX’s Gwynne Shotwell just made a quiet gesture toward Tesla
SpaceX president Gwynne Shotwell quietly followed Tesla on X, and merger watchers noticed right away.
SpaceX President and COO Gwynne Shotwell has started following Tesla’s official account on X, a small change that landed in the middle of a very loud merger conversation. Whole Mars Catalog joked about it on Sunday.
A follow is not an announcement, and neither company has said anything about a deal. What gives the moment weight is the timing. Barclays analyst Dan Levy has told clients that an agreement could come before Tesla’s annual meeting, which must be held by December 6, with SpaceX as the buyer in an all stock deal, as we reported after the Roadster unveiling. Wedbush’s Dan Ives has stuck with a 2027 timeline.
“Shit, I better start following their X account if i’m gonna be helping run the company”
— Whole Mars Catalog (@wholemars) October 18, 2026
Shotwell is the executive most worth watching if the two companies do move closer. When Musk was asked at the All In Summit why Tesla and SpaceX remain separate, Shotwell sat next to him and said SpaceX personnel had already moved into xAI to fill leadership and engineering gaps. The businesses were integrating “faster than I thought,” she said, though “not fully integrated yet.” Her responsibilities have also grown since SpaceX absorbed xAI, and she now oversees operations that include Grok and the company’s AI compute buildout.
The financial links are already there. Tesla’s $2 billion xAI investment turned into a stake of less than one percent in SpaceX, the two share the Terafab chip project in Austin, and Musk exercised his 2018 Tesla options a week after SpaceX began trading, a sequence analysts flagged as giving SpaceX public shares to use in a deal. Musk holds about 20 percent of Tesla and controls 85.1 percent of SpaceX’s voting power, according to our earlier breakdown.
The next test is close at hand. SpaceX reports its second earnings as a public company on Tuesday after the close, and Tesla follows on Wednesday. Musk told analysts in July that “we can’t talk about combining companies and that kind of thing on an earnings call,” so a direct answer is unlikely from either stage. Tesla shareholders can still submit and vote on questions through the Say portal until 4 p.m. EDT on Monday, and the merger is a recurring theme in the queue.
Elon Musk
Tesla Roadster owners to get “Flying Stunt Mode” and looping track access
Musk says Roadster owners can command the unveiling stunts autonomously, with a Texas looping track.
Elon Musk says owners of the new Tesla Roadster will be able to ask the car to perform the stunts Tesla showed at its unveiling, with the car doing the driving itself. Musk made the comment Saturday in a reply on X to tech blogger Robert Scoble, and he added a promise of a looping track at Tesla’s Texas headquarters.
Scoble had argued that the person in the Roadster is not really driving it. In his description, the driver operates a computer that tells another computer what to do, with steering, braking and acceleration all handled by wire. Musk answered, “True. You will be able to ask the Roadster to perform any of the tricks shown autonomously, as it will be sentient. Also, we will have a wild looping track (crazier even than Hot Wheels) at our Texas HQ where you can test out your Roadster.”
@Scobleizer True.
You will be able to ask the Roadster to perform any of the tricks shown autonomously, as it will be sentient.
Also, we will have a wild looping track (crazier even than Hot Wheels) at our Texas HQ where you can test out your Roadster.
— Elon Musk (@elonmusk) October 17, 2026
At the October 15 event outside Waco, the car drove up a curved ramp until it was upside down, flew off on cold gas thrusters, flipped and landed. It also hovered over a Cybercab, Cybertruck, Semi, Model Y and Model 3 while moving. As we noted in our breakdown of the three Roadster configurations, Musk said at the event that the car “literally is just going to puff itself up” to perform the maneuvers whenever an owner wants. Saturday’s reply adds that the car would run them on its own.
Tesla has described some of the hardware that would make that possible. The Roadster uses steer by wire with a yoke, and its cold gas thrusters rely on electric actuators for small adjustments in flight. A fan system under the car creates suction, which Tesla says is strong enough to hold it upside down, a setup we covered in our look at the Roadster’s fan system and thrusters.
Musk did not say when an autonomous stunt feature might arrive, how it would work, or what he means by sentient. He also gave no size, location or opening date for the Texas track. Production is planned for Giga Texas in 2027 or 2028, and Tesla says the car is not approved for public road use. The Rocket version, the one built to fly, is invite only.
The comment follows a week of Musk teasing the event, including his claim that the demo would be a banger, which we covered before the stream. Tesla reports third quarter earnings on October 21, and shareholders can submit and vote on questions through the Say portal until 4 p.m. EDT on October 20, according to our earnings Q&A preview. A question about autonomous Roadster stunts and the Texas track would be a quick way to get specifics from management.