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Tesla Gigafactory 3 expands with Phase 2 construction, ongoing 24/7 shifts

Tesla Gigafactory 3 construction enters its second stage. (Credit: Jason Yang/YouTube)

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Recent reports from the electric car community in China are suggesting that Tesla’s Gigafactory 3 is about to expand its physical footprint, with the second phase of the complex’s construction now underway. The update comes as Tesla continues to prepare Gigafactory 3’s general assembly building for trial production runs of the Model 3.

The latest developments in the Gigafactory 3 complex were captured on film by drone operator Jason Yang, who has been following the progress of the site since its groundbreaking ceremony in January. Aerial shots of the massive electric car production facility revealed that a number of pile drivers and cranes have been deployed to the south of the general assembly building. 

The scene is very reminiscent of the early days of Gigafactory 3’s buildout, which also involved the deployment of several pile drivers operating on an open area. Considering that pile drivers are utilized to provide foundation support for buildings and other structures, the presence of the machines on the southern end of Gigafactory 3 suggests that a new building will soon be built on the new site. 

A closer look at the activities on the southern end of the general assembly building was provided by Tesla enthusiast Chao Zhou, who was able to converse with some employees working in the new construction area. The Gigafactory 3 workers reportedly remarked that the new construction zone was already part of the site’s Phase 2 buildout. What’s more, the workers also added that operations in the complex are still running 24/7. 

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The detailed plans for Gigafactory 3’s Phase 2 construction have not been reported by local media outlets yet, though speculations among the EV community are abounding that the southern end of Tesla’s Shanghai site might be allotted for a facility that produces battery cells and drivetrains for the Model 3 and Model Y. This is plausible considering that Tesla is conducting these operations in Gigafactory 1, though it should be noted that Gigafactory 3’s Phase 2 area seems to be quite small for such an important facility. For now, at least, the Tesla community can only wait and see what facility rises from Gigafactory 3’s Phase 2 buildout.

Tesla has hinted at significant optimizations in its electric car production process since it started building the Model 3 in its Fremont factory in mid-2017. Tesla has since learned a lot of painful and stark lessons from this endeavor, and all of these lessons are expected to be implemented in Gigafactory 3. This will be incredibly pertinent for Tesla, particularly as the Model 3 and the Model Y are two of its highest-volume vehicles to date. Coupled with the growing EV market in China, Tesla could soon find itself very busy operating Gigafactory 3 and attempting to meet the demand from the local Chinese market.Ā 

Watch the recent flyover of the Gigafactory 3 site in the video below. 

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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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Tesla ships out update that brings massive change to two big features

“This change only updates the name of certain features and text in your vehicle,” the company wrote in Release Notes for the update, “and does not change the way your features behave.”

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Credit: Tesla

Tesla has shipped out an update for its vehicles that was caused specifically by a California lawsuit that threatened the company’s ability to sell cars because of how it named its driver assistance suite.

Tesla shipped out Software Update 2026.2.9 starting last week; we received it already, and it only brings a few minor changes, mostly related to how things are referenced.

“This change only updates the name of certain features and text in your vehicle,” the company wrote in Release Notes for the update, “and does not change the way your features behave.”

The following changes came to Tesla vehicles in the update:

  • Navigate on Autopilot has now been renamed to Navigate on Autosteer
  • FSD Computer has been renamed to AI Computer

Tesla faced a 30-day sales suspension in California after the state’s Department of Motor Vehicles stated the company had to come into compliance regarding the marketing of its automated driving features.

The agency confirmed on February 18 that it had taken a “corrective action” to resolve the issue. That corrective action was renaming certain parts of its ADAS.

Tesla discontinued its standalone Autopilot offering in January and ramped up the marketing of Full Self-Driving Supervised. Tesla had said on X that the issue with naming “was a ā€˜consumer protection’ order about the use of the term ā€˜Autopilot’ in a case where not one single customer came forward to say there’s a problem.ā€

It is now compliant with the wishes of the California DMV, and we’re all dealing with it now.

This was the first primary dispute over the terminology of Full Self-Driving, but it has undergone some scrutiny at the federal level, as some government officials have claimed the suite has “deceptive” names. Previous Transportation Secretary Pete Buttigieg was one of those federal-level employees who had an issue with the names “Autopilot” and “Full Self-Driving.”

Tesla sued the California DMV over the ruling last week.

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Tesla workers push back against Giga Berlin unionization

“IG Metall did not succeed in Giga Berlinā€˜s works council election earlier today. The union share was reduced from nearly 40% in 2024 to 31% in 2026! This is a clear message by the Giga Berlin team towards an independent co-determination! The list called Giga United, led by the current chairwoman, Michaela Schmitz, received the most votes with more than 40%! Good news for Giga Berlin!”

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Tesla workers pushed back against unionization efforts at Gigafactory Berlin, and over the past few years, there has been a dramatic decrease in interest to unionize at the German plant.

Gigafactory Berlin Plant Manager AndrƩ Thierig announced on Wednesday that IG Metall, the European union group, saw its share reduce from 40 to 31 percent in 2026 as employees eligible to vote on the issue. Instead, the Giga Berlin team, known as Giga United, received the most votes with more than 40 percent.

Thierig gave specific details in a post on X:

“IG Metall did not succeed in Giga Berlinā€˜s works council election earlier today. The union share was reduced from nearly 40% in 2024 to 31% in 2026! This is a clear message by the Giga Berlin team towards an independent co-determination! The list called Giga United, led by the current chairwoman, Michaela Schmitz, received the most votes with more than 40%! Good news for Giga Berlin!”

There were over 10,700 total employees who were eligible to vote, with 87 percent of them turning out to cast what they wanted. There were three key outcomes: Giga United, IG Metall, and other notable groups, with the most popular being the Polish Initiative.

The 37-seat council remains dominated by non-unionized representatives, preserving Giga Berlin as Germany’s only major auto plant without a collective bargaining agreement.

Thierig and Tesla framed the outcome as employee support for an “independent, flexible, and unbureaucratic” future, enabling acceleration on projects like potential expansions or new models. IG Metall expressed disappointment, accusing management of intimidation tactics and an “unfair” campaign.

The first election of this nature happened back in 2022. In 2024, IG Metall emerged as the largest single faction with 39.4 percent, but non-union lists coalesced for a majority.

But this year was different. There was some extra tension at Giga Berlin this year, as just two weeks ago, an IG Metall rep was accused by Tesla of secretly recording a council meeting. The group countersued for defamation.

Tesla Giga Berlin plant manager faces defamation probe after IG Metall union complaint

This result from the 2026 vote reinforced Tesla’s model of direct employee-management alignment over traditional German union structures, amid ongoing debates about working conditions. IG Metall views it as a setback but continues advocacy. Tesla sees it as validation of its approach in a competitive EV market.

This outcome may influence future labor dynamics at Giga Berlin, including any revival of expansion plans or product lines, which Musk has talked about recently.

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SpaceX President Gwynne Shotwell details xAI power pledge at White House event

The commitment was announced during an event with United States President Donald Trump.

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Credit: xAI

SpaceX President Gwynne Shotwell stated that xAI will develop 1.2 gigawatts of power at its Memphis-area AI supercomputer site as part of the White House’s new ā€œRatepayer Protection Pledge.ā€ 

The commitment was announced during an event with United States President Donald Trump.

During the White House event, Shotwell stated that xAI’s AI data center near Memphis would include a major energy installation designed to support the facility’s power needs.

ā€œAs you know, xAI builds huge supercomputers and data centers and we build them fast. Currently, we’re building one on the Tennessee-Mississippi state line. As part of today’s commitment, we will take extensive additional steps to continue to reduce the costs of electricity for our neighbors… 

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“xAI will therefore commit to develop 1.2 GW of power as our supercomputer’s primary power source. That will be for every additional data center as well. We will expand what is already the largest global Megapack power installation in the world,ā€ Shotwell said.

She added that the system would provide significant backup power capacity.

ā€œThe installation will provide enough backup power to power the city of Memphis, and more than sufficient energy to power the town of Southaven, Mississippi where the data center resides. We will build new substations and invest in electrical infrastructure to provide stability to the area’s grid.ā€

Shotwell also noted that xAI will be supporting the area’s water supply as well.Ā 

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ā€œWe haven’t talked about it yet, but this is actually quite important. We will build state-of-the-art water recycling plants that will protect approximately 4.7 billion gallons of water from the Memphis aquifer each year. And we will employ thousands of American workers from around the city of Memphis on both sides of the TN-MS border,ā€ she noted. 

The Ratepayer Protection Pledge was introduced as part of the federal government’s effort to address concerns about rising electricity costs tied to large AI data centers, as noted in an Insider report. Under the agreement, companies developing major AI infrastructure projects committed to covering their own power generation needs and avoiding additional costs for local ratepayers.

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