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Tesla Gigafactory 3’s rise shows that it’s too early to dismiss Elon Musk’s ‘sci-fi projects’

(Credit: Jason Yang/Twitter)

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A drone flyover of Gigafactory 3 on Monday has revealed that the factory shell of Tesla’s China-based electric car production facility is all but complete. Only a few small sections of the massive general assembly building do not have roofing yet, and the same is true for Gigafactory 3’s walls. Around the facility’s grounds, workers continued their activities, and cement trucks were seen heading inside the massive factory, hinting at the work being started inside.

Other sections of Tesla’s Gigafactory 3 complex are coming to form as well, including what appears to be dormitories for employees and a possible open-air event staging area. Outside the factory, several large trucks are loaded with massive machinery, seemingly intended for use on the 24/7 construction site. Shanghai officials have noted that Gigafactory 3’s initial construction would be done by May. Considering the progress of the buildout as of Monday, this target appears more than feasible.

The pace of Gigafactory 3’s construction is unprecedented, and it is one that will likely make it to books in the future. China itself, which holds a solid reputation for quick, surgically-precise buildouts, will probably set records with the construction of Gigafactory 3. As Tesla’s electric car factory in Shanghai rises, it is pertinent to note that there was a time, not too long ago, when the idea of Gigafactory 3’s factory shell being completed in roughly five months was considered implausible.

Just over two months ago, Gigafactory 3 was comprised of leveled ground and one steel pillar. A few months before that, it was but a muddy field. Go back a few more months and one will find Elon Musk’s initial announcement for the project’s target timeframe, where the brazen CEO estimated that Tesla would start producing electric cars in the Shanghai facility within two years from construction. During that time, Musk’s two-year timeframe was considered in the United States as “not feasible.” Convention demands car factories to be built over years, after all.

Yet here it stands now, tangible, and ahead of Elon Musk’s own target schedule. After Gigafactory 3’s shell is completed this May, the facility is set to undergo ground hardening in June. These will be followed by pipeline communication, equipment stationing, equipment commissioning, and trial production runs, which could start as early as September barring any unexpected issues. This means that by the end of the year, Gigafactory 3 might already hit some of its stride in the production of Tesla’s midsize electric sedan.

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Tesla is simply not a conventional company, and neither is its projects. It’s a disruptor that has reached a critical mass — no longer small enough to be ignored, but not yet large enough to warrant unquestionable respect. This, together with Elon Musk’s persona, both in real life and online, has brought a lot of attention to Tesla. Unfortunately, most of this attention today are predominantly negative, as could be seen in the overarching narrative surrounding the company. An example of this could be seen in a recent note published by Wedbush analyst Dan Ives, where he criticized Tesla and Elon Musk for pursuing “sci-fi” projects like Full Self-Driving, an in-house insurance service, and a Robotaxi network.

Elon Musk is an optimist, and this shows when he announced target timeframes for projects like the Model 3 ramp or the release of features such as Advanced Summon. Nevertheless, Elon Musk might tend to overpromise and deliver late; but his ideas, his visions, are not implausible. They might sound like ideas that are straight out of science fiction, but he, Tesla, SpaceX, and his other ventures are hard at work making that science fiction a reality. There was a time, after all, where people thought replacing the yellow pages, or managing their money through the internet, or landing rockets on a drone ship, was an insane idea. And yet here we are.

Here’s Tesla’s Gigafactory 3 site as of Monday, May 20, 2019.

And here’s the site back in late January.

https://www.youtube.com/watch?v=0VAVsMar26A
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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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Investor's Corner

Tesla welcomes Chipotle President Jack Hartung to its Board of Directors

Tesla announced the addition of its new director in a post on social media platform X.

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Credit: @ArthurFromX/X

Tesla has welcomed Chipotle president Jack Hartung to its Board of Directors. Hartung will officially start his tenure at the electric vehicle maker on June 1, 2025.

Tesla announced the addition of its new director in a post on social media platform X.

Jack Hartung’s Role

With Hartung’s addition, the Tesla Board will now have nine members. It’s been a while since the company added a new director. Prior to Hartung, the last addition to the Tesla Board was Airbnb co-founder Joe Gebbia back in 2022. As noted in a Reuters report, Hartung will serve on the Tesla Board’s audit committee. He will also retire from his position as president and chief strategy officer at Chipotle, and transition into a senior advisor’s role at the restaurant chain, next month.

Hartung has had a long career in the Mexican grill, joining Chipotle in 2002. He held several positions in the company, most recently serving as Chipotle’s President and Chief Strategy Officer. Tesla highlighted Hartung’s accomplishments in a post on its official account on X.

“Over the past 20+ years under Jack’s financial leadership, Chipotle has seen significant growth with over 3,700 restaurants today across the United States, Canada, the United Kingdom, France, Germany, Kuwait and the United Arab Emirates. Jack was named ‘CFO of the Year’ by Orange County Business Journal and Best CFO in the restaurant category by Institutional Investor,” Tesla wrote in its post on X.

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Tesla Board and Musk

Tesla is a controversial company with a controversial CEO, so it is no surprise that the Board of Directors tend to get flak as well. Two weeks ago, for example, Tesla Board Chair Robyn Denholm slammed The Wall Street Journal for publishing an article alleging that company directors had considered a search for a potential successor to Elon Musk. Denholm herself has also been criticized for offloading her TSLA shares.

More recently, news emerged suggesting that the Tesla Board of Directors had formed a special committee aimed at exploring a new pay package for CEO Elon Musk. The committee is reportedly comprised of Tesla board Chair Robyn Denholm and independent director Kathleen Wilson-Thompson, and they would be exploring alternative compensation methods for Musk’s contributions to the company.

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Rivian stock rises as analysts boost price targets post Q1 earnings

Rivian impressed with smaller-than-expected losses & strong revenue, pushing analysts to raise price targets.

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(Credit: Rivian)

Rivian stock is gaining traction as Wall Street analysts raise price targets following the electric vehicle (EV) maker’s first-quarter earnings report. Despite a dip after the announcement, optimism surrounds Rivian’s cost control and upcoming lower-priced cars.

Last week, Rivian reported a better-than-expected Q1 gross profit, surpassing Wall Street’s forecasts with adjusted losses of $0.48 per share against expectations of $0.92 per share. The company also reported a revenue of $1.24 billion compared to the $1.01 billion anticipated.

However, the EV automaker cut its 2025 delivery forecast and capital spending due to President Donald Trump’s tariffs. It explained that it is “not immune to the impacts of the global trade and economic environment.” RIVN stock dropped nearly 6% post-earnings, closing at $12.72 per share.

Wall Street remains upbeat about Rivian, citing progress toward launching lower-priced vehicles in 2026 and effective cost management. On Monday, Stifel analyst Stephen Gengaro raised his RIVN price target to $18 from $16, maintaining a “Buy” rating. He highlighted Rivian’s “solid progress” toward key milestones.

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Conversely, Bernstein’s Daniel Roeska gave RIVN a “Sell” rating. However, Roeska also lifted his Rivian price target to $7.05 from $6.10, acknowledging “better” Q1 results. He warned that profitability remains distant and hinges on multiple product launches by the decade’s end.

Overall, Wall Street’s average price target for RIVN climbed from $14.18 to $14.31, a modest 13-cent increase reflecting positive sentiment. About one-third of analysts covering Rivian rate it a Buy, compared to the S&P 500’s average Buy-rating ratio of 55%.

On Monday, Rivian stock rose 2.7% to $14.64, slightly trailing the S&P 500 and Dow Jones Industrial Average, which gained 3.3% and 2.8%, respectively. The uptick may also stem from broader market gains tied to news of a temporary U.S.-China tariff suspension.

As Rivian navigates trade challenges and scales production at its Illinois factory, its Q1 performance and analyst support signal resilience. With lower-priced EVs on the horizon, Rivian’s strategic moves could bolster its position in the competitive EV market, offering investors cautious optimism for long-term growth.

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Tesla (TSLA) poised to hit $1 trillion valuation again amid reports of Trump China deal

TSLA stock was up about 8% at $322.56 per share on Monday’s premarket.

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(Credit: Tesla)

Tesla shares (NASDAQ:TSLA) are on a tear on Monday’s premarket amidst reports that the United States and China have agreed to significantly roll back tariffs on each other’s goods for an initial 90-day period.

As of writing, the premarket price of TSLA shares suggests that the electric vehicle maker might end Monday with a $1 trillion valuation once more.

Tesla and China

TSLA stock was up about 8% at $322.56 per share on Monday’s premarket. As noted in a report from Barron’s, these prices suggest that the company could achieve a trillion-dollar valuation again, a level not seen since late February. Similar to Tesla, the S&P 500 and the Dow Jones Industrial Average were also up 2.8% and 2.1%, respectively, on Monday’s premarket.

The United States and China’s decision to roll back its tariffs would likely be appreciated by CEO Elon Musk. Despite working for the Trump administration’s Department of Government Efficiency (DOGE), and despite Tesla being least affected by the Trump administration’s tariffs due to its strong domestic supply chains in the United States, China, and Europe, Musk has noted that he is a supporter of non-predatory tariffs.

The United States and China’s Agreement

In a joint statement from the United States and China posted on the White House’s official website, the two countries agreed to lower reciprocal tariffs on each other by 115% for 90 days. This means that the United States will temporarily lower its overall tariffs on Chinese goods from 145% to 30%, as noted in an ABC 12 report. China, on the other hand, will also lower its tariffs on American goods from 125% to 10%.

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The talks were led by Chinese Vice Premier He Lifeng and Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, as per the joint statement. Bessent shared his thoughts about the matter in a comment in Geneva. “The consensus from both delegations is neither side wants to be decoupled, and what have occurred with these very high tariffs … was an equivalent of an embargo, and neither side wants that. We do want trade. We want more balance in trade. And I think both sides are committed to achieving that,” he said. 

A spokesperson from China’s Commerce Ministry also shared a statement about the matter. As per the spokesperson, the deal was an “important step by both sides to resolve differences through equal-footing dialogue and consultation, laying the groundwork and creating conditions for further bridging gaps and deepening cooperation.”

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