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Tesla Gigafactory 3 in China to exclusively produce Model 3 and Model Y variants
Tesla’s groundbreaking event for Gigafactory 3 showcased the company’s current lineup of vehicles and a personal appearance from CEO Elon Musk. As could be seen from images uploaded of the ceremony, Musk shared the stage with the first vehicle expected to be produced in the upcoming facility — a Tesla Model 3.
Unlike Tesla’s first Gigafactory in Nevada, which produces the Model 3’s drive units and battery packs, Gigafactory 3 is set to be equipped with production lines for both batteries and electric cars. As confirmed by Elon Musk earlier today prior to the facility’s groundbreaking ceremony, the Shanghai facility will be producing the Model 3 sedan and the Model Y SUV.
In a follow-up tweet, though, Musk also mentioned a particularly notable detail about Gigafactory 3’s output. In his update, Musk stated that the upcoming Shanghai facility would be exclusively producing “affordable” versions of the Model 3 and Model Y. Higher-end versions of the vehicles, such as the Model 3 Performance, would still be built in the United States and exported to international markets, including China.
Shanghai Giga will produce affordable versions of 3/Y for greater China. All Model S/X & higher cost versions of Model 3/Y will still be built in US for WW market, incl China.
— Elon Musk (@elonmusk) January 7, 2019
Such an announcement bodes well for Tesla’s strategy in the Asian economic superpower. Tesla’s vehicles in the country, after all, have so far been higher-priced than EVs produced by local electric car makers. By producing its lower-end Model 3 and Model Y in Gigafactory 3, Tesla would be able to price the vehicles very competitively in the country, mainly as the electric cars would not be subject to import taxes — regardless of the presence of a trade war between the United States and China.
Elon Musk has not provided more details about the “affordable” versions of the Model 3 and Model Y that would be produced in Gigafactory 3. In the case of the Model 3, though, Musk’s statement most likely pertains to the Standard Range version of the electric sedan. That’s a car that is, at its most basic iteration, priced in the United States in the same range as a top-tier Toyota Camry. The Tesla Model Y, on the other hand, is an electric car that would be competing in a market already enamored with SUVs. In China, a country that is aggressively pushing for the adoption of electric vehicles, such electric cars would likely be disruptive.
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- (Photo: TeslainShanghai/Imgur)
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- (Photo: TeslainShanghai/Imgur)
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- (Photo: TeslainShanghai/Imgur)
Images from Tesla’s Gigafactory 3 groundbreaking event in Shanghai, China. (Photo: TeslainShanghai/Imgur)
Tesla is aiming to follow an incredibly ambitious timetable for Gigafactory 3. When the company initially announced its target of starting vehicle production within two years after the facility begins construction, many in the United States were skeptical. Wall Street analyst James Albertine, for one, flat-out declared the target timeline was “not feasible.” In Tesla’s Q3 2018 production and deliveries report, Tesla did adjust its estimates, making its timetable even more aggressive. Earlier today, Musk noted on Twitter that the goal is to finish the initial construction of Gigafactory 3 this summer, followed by the start of Model 3 production by the end of 2019. Large-scale manufacturing of the electric sedan would begin sometime next year.
While such an aggressive timeline is classic Elon Musk, it should be noted that Tesla seems to be getting a considerable amount of support from the Chinese government. After the project was officially announced last year, for example, it did not take long before local Shanghai banks granted Tesla low-interest loans to fund part of the facility’s construction. Furthermore, Tesla’s bid for the 864,885-square meter plot of land in Shanghai’s Lingang Industrial Zone went unchallenged. The company’s construction partner, China Construction Third Engineering Bureau Co., Ltd, is also a subsidiary of China Construction, which is owned by the government.
With support from the local Chinese government, there is almost no doubt that Gigafactory 3 will be completed on schedule. Ultimately, the start of Model 3 production in the upcoming facility would likely depend on Tesla’s capability to ship and set up its equipment in the battery and electric car factory.
Watch Elon Musk’s speech at the Gigafactory 3 groundbreaking ceremony in the video below.
News
Ford is charging for a basic EV feature on the Mustang Mach-E
When ordering a new Ford Mustang Mach-E, you’ll now be hit with an additional fee for one basic EV feature: the frunk.
Ford is charging an additional fee for a basic EV feature on its Mustang Mach-E, its most popular electric vehicle offering.
Ford has shuttered its initial Model e program, but is venturing into a more controlled and refined effort, and it is abandoning the F-150 Lightning in favor of a new pickup that is currently under design, but appears to have some favorable features.
However, ordering a new Mustang Mach-E now comes with an additional fee for one basic EV feature: the frunk.
The frunk is the front trunk, and due to the lack of a large engine in the front of an electric vehicle, OEMs are able to offer additional storage space under the hood. There’s one problem, though, and that is that companies appear to be recognizing that they can remove it for free while offering the function for a fee.
Ford is now charging $495 on the Mustang Mach-E frunk (front trunk). What are your thoughts on that? pic.twitter.com/EOzZe3z9ZQ
— Alan of TesCalendar 📆⚡️ (@TesCalendar1) February 24, 2026
Ford is charging $495 for the frunk.
Interestingly, the frunk size varies by vehicle, but the Mustang Mach-E features a 4.7 to 4.8 cubic-foot-sized frunk, which measures approximately 9 inches deep, 26 inches wide, and 14 inches high.
When the vehicle was first released, Ford marketed the frunk as the ultimate tailgating feature, showing it off as a perfect place to store and serve cold shrimp cocktail.
Ford Mach-E frunk is perfect for chowders and chicken wings, and we’re not even joking
It appears the decision to charge for what is a simple advantage of an EV is not going over well, as even Ford loyal customers say the frunk is a “basic expectation” of an EV. Without it, it seems as if fans feel the company is nickel-and-diming its customers.
It will be pretty interesting to see the Mach-E without a frunk, and while it should not be enough to turn people away from potentially buying the vehicle, it seems the decision to add an additional charge to include one will definitely annoy some customers.
News
Tesla to improve one of its best features, coding shows
According to the update, Tesla will work on improving the headlights when coming into contact with highly reflective objects, including road signs, traffic signs, and street lights. Additionally, pixel-level dimming will happen in two stages, whereas it currently performs with just one, meaning on or off.
Tesla is looking to upgrade its Matrix Headlights, a unique and high-tech feature that is available on several of its vehicles. The headlights aim to maximize visibility for Tesla drivers while being considerate of oncoming traffic.
The Matrix Headlights Tesla offers utilize dimming of individual light pixels to ensure that visibility stays high for those behind the wheel, while also being considerate of other cars by decreasing the brightness in areas where other cars are traveling.
Here’s what they look like in action:
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- Credit: u/ObjectiveScratch | Reddit
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- Credit: u/ObjectiveScratch | Reddit
As you can see, the Matrix headlight system intentionally dims the area where oncoming cars would be impacted by high beams. This keeps visibility at a maximum for everyone on the road, including those who could be hit with bright lights in their eyes.
There are still a handful of complaints from owners, however, but Tesla appears to be looking to resolve these with the coming updates in a Software Version that is currently labeled 2026.2.xxx. The coding was spotted by X user BERKANT:
🚨 Tesla is quietly upgrading Matrix headlights.
Software https://t.co/pXEklQiXSq reveals a hidden feature:
matrix_two_stage_reflection_dip
This is a major step beyond current adaptive high beams.
What it means:
• The car detects highly reflective objects
Road signs,… pic.twitter.com/m5UpQJFA2n— BERKANT (@Tesla_NL_TR) February 24, 2026
According to the update, Tesla will work on improving the headlights when coming into contact with highly reflective objects, including road signs, traffic signs, and street lights. Additionally, pixel-level dimming will happen in two stages, whereas it currently performs with just one, meaning on or off.
Finally, the new system will prevent the high beams from glaring back at the driver. The system is made to dim when it recognizes oncoming cars, but not necessarily objects that could produce glaring issues back at the driver.
Tesla’s revolutionary Matrix headlights are coming to the U.S.
This upgrade is software-focused, so there will not need to be any physical changes or upgrades made to Tesla vehicles that utilize the Matrix headlights currently.
Elon Musk
xAI’s Grok approved for Pentagon classified systems: report
Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations.
Elon Musk’s xAI has signed an agreement with the United States Department of Defense (DoD) to allow Grok to be used in classified military systems.
Previously, Anthropic’s Claude had been the only AI system approved for the most sensitive military work, but a dispute over usage safeguards has reportedly prompted the Pentagon to broaden its options, as noted in a report from Axios.
Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations.
The publication reported that xAI agreed to the Pentagon’s requirement that its technology be usable for “all lawful purposes,” a standard Anthropic has reportedly resisted due to alleged ethical restrictions tied to mass surveillance and autonomous weapons use.
Defense Secretary Pete Hegseth is scheduled to meet with Anthropic CEO Dario Amodei in what sources expect to be a tense meeting, with the publication hinting that the Pentagon could designate Anthropic a “supply chain risk” if the company does not lift its safeguards.
Axios stated that replacing Claude fully might be technically challenging even if xAI or other alternative AI systems take its place. That being said, other AI systems are already in use by the DoD.
Grok already operates in the Pentagon’s unclassified systems alongside Google’s Gemini and OpenAI’s ChatGPT. Google is reportedly close to an agreement that will result in Gemini being used for classified use, while OpenAI’s progress toward classified deployment is described as slower but still feasible.
The publication noted that the Pentagon continues talks with several AI companies as it prepares for potential changes in classified AI sourcing.
Ford is charging for a basic EV feature on the Mustang Mach-E
Tesla to improve one of its best features, coding shows
