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Tesla Gigafactory 3 construction in China begins with rapid buildout of perimeter fence

(Photo: 烏瓦/YouTube)

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Tesla’s Gigafactory 3 in Shanghai is beginning to take shape, with construction work on the facility entering its first phases. Drone footage taken last Wednesday, for one, recently revealed that workers have seemingly finished laying a perimeter fence around Tesla’s 864,885-square meter plot of land in Shanghai’s Lingang Industrial Zone, paving the way for more work to be done.

The drone footage of Gigafactory 3’s perimeter fence comes just over a week after Shanghai Mayor Ying Yong and Vice Mayor Wu Qing met with Tesla’s leaders in China to check out the company’s new vehicles like the Model 3. During their visit, the officials urged Tesla and other parties involved in the facility’s construction to expedite the buildout of Gigafactory 3.

Tesla’s timeframe for Gigafactory 3 has always been ambitious. When the company initially announced that it plans to start vehicle production in the facility roughly two years after the site’s construction begins, many were dismissive. Tesla critics were quick to note that such a timeframe is too ambitious. Wall Street was equally skeptical, with Consumer Edge Research senior auto analyst James Albertine dubbing Gigafactory 3’s timeline as simply “not feasible.”

Tesla, for its part, eventually opted to change its initial timeline for the facility. Instead of taking a more conservative stance, though, Tesla did the opposite, stating in its Q3 2018 vehicle production and deliveries report that it would be accelerating the construction of Gigafactory 3 even more. Tesla further noted that it expects the project to be a “capital efficient and rapid buildout, using many lessons learned from the Model 3 ramp in North America.”

While the timeframe for Gigafactory 3 is undoubtedly ambitious, the company does enjoy the favor of the Chinese government, allowing Tesla to tap into local resources and manpower. Seemingly as a response to questions about Tesla’s ability to gain funding for the project, for example, reports emerged that local Shanghai banks have given the electric car maker low-interest loans amounting to 30% of the factory’s estimated costs. Tesla’s bid for the 864,885-square meter plot of land also went unchallenged, enabling the company to quickly prepare for the facility’s construction. With this in mind, it appears that the rapid buildout of Gigafactory 3’s perimeter fence is simply yet another sign that the government fully supports the project.

Gigafactory 3 will play a considerable role in Tesla’s expansion into the Chinese market. By producing vehicles locally, Tesla would be able to avoid the import tariffs placed on its vehicles coming from the United States, while allowing Tesla to release competitively priced cars to go against lower-priced EVs being produced by local carmakers.  

China stands as the world’s largest market for electric cars, being a country that is aggressively pushing for sustainable transportation. With this in mind, Tesla’s success in the country would likely be dependent on how it could target the greater Chinese auto industry with its lower-priced vehicles. While the Model S and Model X are mostly seen as status symbols for the successful and wealthy, the luxury sedan and SUV nonetheless cater to the country’s upper class, which represents a much smaller market. With vehicles such as the Model Y and the Model 3 saturating the country from Gigafactory 3, Tesla could tap into China’s ever-growing mainstream electric car market, which is on pace to hit a milestone of 1 million EVs sold in 2018.

Watch the progress of Gigafactory 3 in the video below.

https://youtu.be/rx3mXjQg46U

 

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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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Elon Musk

Elon Musk’s next Uranium in Uranus merch is Boring Company’s weirdest tease yet

Elon Musk teased a glowing new Boring Company merch idea, complete with a Geiger counter.

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Concept rendering of Boring Company Uranium in Uranus merch tease via Grok
Concept rendering of Boring Company Uranium in Uranus merch tease via Grok

Elon Musk teased the next piece of Boring Company merchandise on X Saturday, and it is exactly as unserious as fans of the company’s product history have come to expect. “The next @boringcompany merch will put Uranium in Uranus,” Musk wrote in a thread posted early Saturday morning. He followed up by explaining that the item would glow in the dark, “because otherwise how could you find it,” and that a Geiger counter would be sold separately as “an optional strap-on.”

Musk closed the thread with a line that doubles as a mission statement for the tunneling company’s merchandise arm: “It’s not easy coming up with something that is both outrageously unsellable and yet extremely popular.”

The Boring Company has built a small but consistent side business out of novelty items that start as jokes and end up selling out. The company’s Not-a-Flamethrower raised roughly $10 million in a few days back in 2018, moving all 20,000 units it produced. Its Burnt Hair perfume, priced around $100 a bottle, sold out fast enough that scalpers were flipping units on eBay for ten times the retail price. Boring Bricks, made from tunneling spoil, followed the same playbook of teasing a product on X months before it became real.

Musk has not said what the actual item will be, only that it involves uranium and glows in the dark. Given the pattern, that vagueness is probably intentional. Past merch announcements have started as one-line jokes and taken weeks or months to turn into an actual product listing on the company’s site, and there is no guarantee this one follows through at all.

The timing lines up with a period of real momentum for the Boring Company outside of the joke merchandise. The company said last week it plans to double the number of operational stations on its Vegas Loop by the end of the year, a target tied to a hiring push for drivers and operations managers. Prufrock-5, one of the company’s tunnel boring machines, also just wrapped a test tunnel in Bastrop, Texas, and is expected to relaunch on its next assignment in November.

Whether the uranium joke turns into an actual product remains to be seen. Musk’s post did not include a price, a shipping date, or even a name for the item, which has historically meant a Boring Company website page goes up quietly, password protected, sometime before an announcement.

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NASA taps SpaceX for more astronaut missions as Boeing Starliner remains grounded

NASA just gave SpaceX a $946 million contract for three more astronaut missions through 2030.

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NASA has awarded SpaceX a $946 million contract modification covering three more astronaut missions to the International Space Station, according to an announcement the agency published Friday. The award adds Crew-15, Crew-16, and Crew-17 to SpaceX’s existing Commercial Crew Transportation Capability contract, bringing the agreement’s total value to $5.92 billion across 17 flights.

SpaceX confirmed the award on X, writing that it was excited for Falcon 9 and Dragon to launch NASA’s Crew-15, 16, and 17 missions to the Space Station from Florida. The new missions cover ground, launch, in orbit, and return operations, along with cargo transport and a lifeboat capability while docked at the station, and the period of performance runs through 2030.

The award follows a notice of intent NASA issued in May, when the agency first signaled it would purchase up to six additional post certification missions from SpaceX. Teslarati covered that filing at the time, noting NASA cited technical issues and schedule delays encountered by Boeing as a driving factor. Friday’s contract modification locks in three of those six missions, with the remaining three left open for NASA to award later, potentially to Boeing if Starliner clears certification.

Boeing’s CST-100 Starliner has still not flown an operational crew rotation mission for NASA. The spacecraft’s most recent crewed test flight in 2024 ended without the astronauts returning aboard Starliner, and the company has spent the time since working through thruster problems. SpaceX President Gwynne Shotwell said this week that SpaceX is not retiring Crew Dragon today, for sure, while stopping short of committing to fly it past 2030.

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Crew-12 is currently docked at the space station, and NASA has said Crew-13 is targeting a launch in the coming weeks. The newly awarded Crew-15 through Crew-17 missions extend SpaceX’s role as NASA’s primary way of getting astronauts to and from orbit well into the back half of the decade, regardless of what happens with Starliner or Starship in the meantime.

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Investor's Corner

New drone video shows Tesla’s Optimus Factory reaching a turning point

New drone footage shows Tesla’s dedicated Optimus factory steel frame nearing completion at Giga Texas.

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Tesla’s dedicated Optimus factory at Gigafactory Texas is closing in on a finished steel frame, according to drone footage posted Thursday afternoon by longtime site observer Joe Tegtmeyer. In the video, Tegtmeyer said structural steel assembly is now about five column grids away from reaching the building’s north perimeter beam, putting the primary skeleton in its final stretch roughly six months after Tesla broke ground on the North Campus site in late March.

Tegtmeyer’s footage shows concrete already going in on three upper floors while crews continue laying rebar and pouring grade beam footings at ground level. That kind of parallel work, steel rising at one end of the site while concrete sets at the other, is a scheduling approach Tesla used at the original Giga Texas building and appears to be repeating here to save time before the plant’s targeted 2027 production start.

Teslarati has tracked the building’s progress since Tesla confirmed construction was officially underway in May, when the first steel structure went up on what was then bare, reclaimed land. The facility is part of a more than 5.2 million square foot expansion of Giga Texas’s North Campus that Tesla has said will eventually run nearly the length of the existing vehicle factory, over 4,000 feet, while sitting somewhat narrower. Musk has pegged the long term output target at 10 million Optimus units a year once the line is running at full capacity, a volume that would dwarf the one million unit pilot line Tesla is standing up separately at its Fremont, California factory.

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Tesla Giga Texas to feature massive Optimus V4 production line

The Texas facility sits alongside another major buildout on the same campus. Terafab, the joint Tesla and SpaceX chip fabrication plant that will eventually supply the silicon running Optimus units in the field. Housing robot assembly and chip production on the same grounds is a deliberate supply chain decision, cutting down on the shipping and lead time that would otherwise sit between the two.

Tesla has not given an updated timeline beyond its previously stated goal of bringing high volume Optimus production online at the site in the summer of 2027. Fremont’s smaller pilot line began mass producing the current Gen 3 robot in January, with that plant expected to build tens of thousands of units this year primarily to generate the real world data Tesla needs to refine the robot’s software before Giga Texas ramps up. Six months of visible construction progress, tracked almost entirely through Tegtmeyer’s recurring drone flights, gives the clearest outside look yet at how seriously Tesla is treating that 2027 deadline.

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