

Investor's Corner
Tesla’s Gigafactory 3 in China starts preparations with 6-month construction permit
Tesla’s Gigafactory 3 in China is under a very ambitious timeline, considering that electric car maker is expecting to start producing vehicles on the site sometime in the second half of 2019. So far, preparations for the buildout of the upcoming facility are being put in place, including the construction of a perimeter fence that surrounds the company’s 864,885-square meter plot of land in Shanghai’s Lingang Industrial Zone.
Just recently, documents have emerged pointing to Tesla acquiring a construction permit to start building facilities for Gigafactory 3. The construction permit, which was granted by the Shanghai Municipal Government, is good for two stages of construction and effective for 180 days, starting from December 29, 2018. The contractor for the project was listed as China Construction Third Engineering Bureau Co., Ltd, a subsidiary of China Construction, a large government-owned construction firm.
Tesla China has obtained a construction permit (GF3) from the Shanghai Municipal Government. The construction permit date starts from December 29, 2018.
Constructor: China Construction Third Engineering Bureau Co.,Ltd
Credit: @congcongcui1 $TSLA #Tesla $China #TeslaChina pic.twitter.com/ThvUkgPIpG— vincent (@vincent13031925) January 2, 2019
It should be noted that the involvement of a government-owned construction company bodes well for Gigafactory 3’s buildout. With such parties involved, after all, there is little that could get in the way of the project being completed on time. Thus, for now, at least, it would appear that the speed of Gigafactory 3’s construction would likely depend on how fast Tesla can ship and set up its assembly lines for the upcoming facility. If Tesla can accomplish this, there is a very good chance that China’s first locally-made Model 3 would indeed roll out of Gigafactory 3 sometime in the second half of 2019.
So far, Tesla’s Gigafactory 3 buildout has been seeing notable support from the Chinese government. Last year, China all but changed its rules for Tesla when it allowed the company to be the sole owner of Gigafactory 3. After the project was officially announced, things moved at an even faster pace. Local Shanghai banks were quick to grant low-interest loans to fund part of Gigafactory 3’s construction. Tesla’s bid for the 864,885-square meter plot of land in Shanghai’s Lingang Industrial Zone also went unchallenged, allowing the electric car maker to secure the land it needed for the facility without any problems.
While Tesla attracts some negative publicity in China, the company also gets support and favorable coverage from state media. Last month, for one, local Chinese news outlets reported that the facility’s progress is about one year ahead of its original schedule. Shanghai Mayor Ying Yong and Vice Mayor Wu Qing also addressed Gigafactory 3 during a meetup with Tesla’s leaders in China, where they urged the electric car maker and companies involved in the facility’s construction to expedite the factory’s buildout.
When Tesla announced its initial timeline for Gigafactory 3, many were skeptical. The company initially estimated that vehicle production would begin roughly two years after construction begins. This was met by many raised eyebrows from Tesla critics and Wall Street, with Consumer Edge Research analyst James Albertine dubbing the timetable as “not feasible.” Tesla eventually adjusted its timeframe for Gigafactory 3 on its Q3 2018 vehicle production and deliveries report. Instead of being more conservative, though, Tesla opted to do the opposite, stating that it is accelerating the construction of the upcoming Shanghai facility.
Elon Musk, for his part, has teased that he would be visiting China soon for the groundbreaking of Gigafactory 3. Once that is done, the progress of the battery and electric car facility would likely move at an even faster pace.
Thanks Tesla owners in China! Looking forward to visiting soon for the groundbreaking of Gigafactory Shanghai!
— Elon Musk (@elonmusk) December 30, 2018
Elon Musk
Tesla CEO Elon Musk’s $1 trillion pay package hits first adversity from proxy firm
ISS said the size of the pay package will enable Musk to have access to “extraordinarily high pay opportunities over the next ten years,” and it will have an impact on future packages because it will “reduce the board’s ability to meaningfully adjust future pay levels.”

Tesla CEO Elon Musk’s $1 trillion pay package, which was proposed by the company last month, has hit its first bit of adversity from proxy advisory firm Institutional Shareholder Services (ISS).
Musk has called the firm “ISIS,” a play on its name relating it to the terrorist organization, in the past.
“ISIS”
— Elon Musk (@elonmusk) September 27, 2021
The pay package aims to lock in Musk to the CEO role at Tesla for the next decade, as it will only be paid in full if he is able to unlock each tranche based on company growth, which will reward shareholders.
However, the sum is incredibly large and would give Musk the ability to become the first trillionaire in history, based on his holdings. This is precisely why ISS is advising shareholders to vote against the pay plan.
The group said that Musk’s pay package will lock him in, which is the goal of the Board, and it is especially important to do this because of his “track record and vision.”
However, it also said the size of the pay package will enable Musk to have access to “extraordinarily high pay opportunities over the next ten years,” and it will have an impact on future packages because it will “reduce the board’s ability to meaningfully adjust future pay levels.”
The release from ISS called the size of Musk’s pay package “astronomical” and said its design could continue to pay the CEO massive amounts of money for even partially achieving the goals. This could end up in potential dilution for existing investors.
If Musk were to reach all of the tranches, Tesla’s market cap could reach up to $8.5 trillion, which would make it the most valuable company in the world.
Tesla has made its own attempts to woo shareholders into voting for the pay package, which it feels is crucial not only for retaining Musk but also for continuing to create value for shareholders.
Tesla launched an ad for Elon Musk’s pay package on Paramount+
Musk has also said he would like to have more ownership control of Tesla, so he would not have as much of an issue with who he calls “activist shareholders.”
Investor's Corner
Barclays lifts Tesla price target ahead of Q3 earnings amid AI momentum
Analyst Dan Levy adjusted his price target for TSLA stock from $275 to $350, while maintaining an “Equal Weight” rating for the EV maker.

Barclays has raised its price target for Tesla stock (NASDAQ: TSLA), with the firm’s analysts stating that the electric vehicle maker is approaching its Q3 earnings with two contrasting “stories.”
Analyst Dan Levy adjusted his price target for TSLA stock from $275 to $350, while maintaining an “Equal Weight” rating for the EV maker.
Tesla’s AI and autonomy narrative
Levy told investors that Tesla’s “accelerating autonomous and AI narrative,” amplified by CEO Elon Musk’s proposed compensation package, is energizing market sentiment. The analyst stated that expectations for a Q3 earnings-per-share beat are supported by improved vehicle delivery volumes and stronger-than-expected gross margins, as noted in a TipRanks report.
Tesla has been increasingly positioning itself as an AI-driven company, with Elon Musk frequently emphasizing the long-term potential of its Full Self-Driving (FSD) software and products like Optimus, both of which are heavily driven by AI. The company’s AI focus has also drawn the support of key companies like Nvidia, one of the world’s largest companies today.
Still cautious on TSLA
Despite bullish AI sentiments, Barclays maintained its caution on Tesla’s underlying business metrics. Levy described the firm’s stance as “leaning neutral to slightly negative” heading into the Q3 earnings call, citing concerns about near-term fundamentals of the electric vehicle maker.
Barclays is not the only firm that has expressed its concerns about TSLA stock recently. As per previous reports, BNP Paribas Exane also shared an “Underperform” rating on the company due to its two biggest products, the Robotaxi and Optimus, still generating “zero sales today, yet inform ~75% of our ~$1.02 trillion price target.” BNP Paribas, however, also estimated that Tesla will have an estimated 525,000 active Robotaxis by 2030, 17 million cumulative Optimus robot deliveries by 2040, and more than 11 million FSD subscriptions by 2030.
Investor's Corner
BNP Paribas Exane initiates Tesla coverage with “Underperform” rating
The firm’s projections for Tesla still include an estimated 525,000 active Robotaxis by 2030.

Tesla (NASDAQ: TSLA) has received a bearish call from BNP Paribas Exane, which initiated coverage on the stock with an Underperform rating and a $307 price target, about 30% below current levels.
The firm’s analysts argued that Tesla’s valuation is driven heavily by artificial intelligence ventures such as the Robotaxi and Optimus, which are both still not producing any sales today.
Tesla’s valuation
In its note, BNP Paribas Exane stated that Tesla’s two AI-led programs, the Robotaxi and Optimus robots, generate “zero sales today, yet inform ~75% of our ~$1.02 trillion price target.” The research firm’s model projected a maximum bull-case valuation of $2.7 trillion through 2040, but after discounting milestone probabilities, its base-case valuation remained at $1.02 trillion.
The analysts described their outlook as optimistic toward Tesla’s AI ventures but cautioned that the stock’s “unfavorable risk/reward is clear,” adding that consensus earnings expectations for 2026 remain too high. Tesla’s market cap currently stands around $1.44 trillion with a trailing twelve-month revenue of $92.7 billion, which BNP Paribas argued does not justify Tesla’s P/E ratio of 258.59, as noted in an Investing.com report.
Tesla and its peers
BNP Paribas Exane’s report also included a comparative study of the “Magnificent Seven,” finding Tesla’s current market valuation as rather aggressive. “Our unique comparative analysis of the ‘Mag 7’ reveals the extreme nature of TSLA’s valuation, as the market implicitly says TSLA’s 2035 earnings (~55% of which will be driven by Robotaxi & Optimus, w/ zero sales now) have the same level of risk & value-appropriation as the ‘Mag 6’s’ 2026 earnings,” the firm noted.
The firm’s projections for Tesla include an estimated 525,000 active Robotaxis by 2030, 17 million cumulative Optimus robot deliveries by 2040 priced above $20,000 each, and more than 11 million Full Self-Driving subscriptions by 2030. Interestingly enough, these seem to be rather optimistic projections for one of the electric vehicle maker’s more bearish estimates today.
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