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Tesla’s Gigafactory 3 in China starts preparations with 6-month construction permit

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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.

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.

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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.

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 called ‘biggest meme stock we’ve ever seen’ by Yale associate dean

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Credit: Tesla

Tesla (NASDAQ: TSLA) is being called “the biggest meme stock we’ve ever seen” by Yale School of Management Senior Associate Dean Jeff Sonnenfeld, who made the comments in a recent interview with CNBC.

Sonnenfeld’s comments echo those of many of the company’s skeptics, who argue that its price-to-earnings ratio is far too high when compared to other companies also in the tech industry. Tesla is often compared to companies like Apple, Nvidia, and Microsoft when these types of discussions come up.

Fundamentally, yes, Tesla does trade at a P/E level that is significantly above that of any comparable company.

However, it is worth mentioning that Tesla is not traded like a typical company, either.

Here’s what Sonnenfeld said regarding Tesla:

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“This is the biggest meme stock we’ve ever seen. Even at its peak, Amazon was nowhere near this level. The PE on this, well above 200, is just crazy. When you’ve got stocks like Nvidia, the price-earnings ratio is around 25 or 30, and Apple is maybe 35 or 36, Microsoft around the same. I mean, this is way out of line to be at a 220 PE. It’s crazy, and they’ve, I think, put a little too much emphasis on the magic wand of Musk.”

Many analysts have admitted in the past that they believe Tesla is an untraditional stock in the sense that many analysts trade it based on narrative and not fundamentals. Ryan Brinkman of J.P. Morgan once said:

“Tesla shares continue to strike us as having become completely divorced from the fundamentals.”

Dan Nathan, another notorious skeptic of Tesla shares, recently turned bullish on the stock because of “technicals and sentiment.” He said just last week:

“I think from a trading perspective, it looks very interesting.”

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Nathan said Tesla shares show signs of strength moving forward, including holding its 200-day moving average and holding against current resistance levels.

Sonnenfeld’s synopsis of Tesla shares points out that there might be “a little too much emphasis on the magic wand of Musk.”

Elon Musk just bought $1 billion in Tesla stock, his biggest purchase ever

This could refer to different things: perhaps his recent $1 billion stock buy, which sent the stock skyrocketing, or the fact that many Tesla investors are fans and owners who do not buy and sell on numbers, but rather on news that Musk might report himself.

Tesla is trading around $423.76 at the time of publication, as of 3:25 p.m. on the East Coast.

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Elon Musk affirms Tesla commitment and grueling work schedule: “Daddy is very much home”

The remarks came as Tesla shares crossed the $400 mark on the stock market.

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Tesla CEO Elon Musk reiterated his commitment to the electric vehicle maker and its future projects this week, responding to speculation following his $1 billion purchase of TSLA stock. 

The remarks came as Tesla shares crossed the $400 mark on the stock market, extending a rally fueled in part by Musk’s TSLA purchase.

Elon Musk’s nonstop work schedule

Amidst the reaction of TSLA stock to Musk’s $1 billion investment, Tesla owners such as @greggertruck noted that “Daddy’s home.” Musk replied, stating that “Daddy is very much home.” He then shared details of a packed weekend of work, which was definitely grueling but completely within character for a “wartime CEO.”

Musk did note, however, that he had lunch with his kids during the weekend despite his extremely busy schedule.

“Daddy is very much home. Am burning the midnight oil with Optimus engineering on Friday night, then redeye overnight to Austin arriving 5am, wake up to have lunch with my kids and then spend all Saturday afternoon in deep technical reviews for the Tesla AI5 chip design. 

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“Fly to Colossus II on Monday to walk the whole datacenter floor, review transformers and power production (excellent progress), depart midnight. Then up to 12 hours of back-to-back meetings across all Tesla departments, but with a particular focus on AI/Autopilot, Optimus production plans, and vehicle production/delivery,” Musk wrote in his post

Wartime CEO

Wedbush analyst Dan Ives described Musk as operating in “wartime CEO mode,” highlighting autonomous driving and AI as a trillion-dollar market opportunity for Tesla. Musk reiterated this point late last month as well, when he outlined the several projects he is juggling among his numerous companies. At the time, Musk stated that he was busy with Starship 10, Grok 5, and Tesla V14. This was despite his notable presence on X. 

With Tesla Master Plan Part IV being partly released, the company is entering what could very well be its most ambitious stage to date. To usher in an era of sustainable abundance, Tesla would definitely require a “wartime CEO,” someone who could remain locked in and determined to push through any obstacles to ensure that the company achieves its goals.

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Tesla analyst says Musk stock buy should send this signal to investors

“With Musk’s (Tesla stock) purchase, combined with the upward momentum for delivery expectations and robotaxi rollout, we are becoming more bullish.”

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(Credit: Tesla)

Tesla CEO Elon Musk purchased roughly $1 billion in Tesla shares on Friday, and analysts are now breaking down the move as the stock is headed upward.

One of them is William Blair analyst Jed Dorsheimer, who said in a new note to investors on Monday that Musk’s move should send a signal of confidence to stock buyers, especially considering the company’s numerous catalysts that currently exist.

Elon Musk just bought $1 billion in Tesla stock, his biggest purchase ever

Dorsheimer said in the note:

“With Musk’s (Tesla stock) purchase, combined with the upward momentum for delivery expectations and robotaxi rollout, we are becoming more bullish. This purchase is Musk’s first buy since 2020. To us, this sends a strong signal of confidence in the most important part of Tesla’s future business, robotaxi.”

Musk putting an additional $1 billion back into the company in the form of more stock ownership is obviously a huge vote of confidence.

He knows more than anyone about the progress Tesla has made and is making on the Robotaxi platform, as well as the company’s ongoing efforts to solve vehicle autonomy. If he’s buying stock, it is more than likely a good sign.

Tesla has continued to expand its Robotaxi platform in a number of ways. The project has gotten bigger in terms of service area, vehicle fleet, and testing population. Tesla has also recently received a permit to test in Nevada, unlocking the potential to expand into a brand-new state for the company.

In the note, Dorsheimer also touched on Musk’s recent pay package, revealing that William Blair recently met with Tesla’s Board of Directors, who gave the firm some more color on the situation:

“We recently participated in a meeting with Tesla’s board of directors to discuss the details of Musk’s performance package. The board is confident of its position in the Delaware case and anticipates a verdict by end of year. It does not expect a similar situation to occur under new Texas jurisdiction. Musk has the board’s full support, and we expect he’ll get more than enough shareholder support for this to pass with flying colors.”

Tesla stock is up over 6 percent so far today, trading at $421.50 at the time of publication.

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