Investor's Corner
Tesla Gigafactory 3 seems to be preparing for the Model Y production ramp
There is a lot at stake riding in Tesla’s Gigafactory 3, the first facility of the electric car maker that would be established and operated in a foreign country. Giga 3 is set to be the first of Tesla’s next-generation Gigafactories as well, since the facility would be capable of producing both battery packs and electric cars on-site.
Tesla actually lucked out with Gigafactory 3, as it was able to secure a permit from the Chinese government to operate the facility without a local partner earlier this year. Tesla’s business license for the facility, which would be built in Shanghai, was granted to Tesla Motors Hong Kong Co., LLC, the electric car maker’s HK division, last May. The company also registered the capital for the Shanghai site at 100 million yuan, which corresponds to about $15.8 million. Interestingly, the initial filings of the company were absent of any references to battery production and electric car manufacturing.
That is, until now. A recent report from Sina Finance has noted that Tesla (Shanghai) Co., Ltd. recently registered a capital increase for its upcoming facility. The increase was significant, with the electric car maker now listing a capital of 4.67 billion yuan, which corresponds to about $680 million. Tesla Shanghai also revised its filings for the facility, mentioning references to battery separators, battery management systems, as well as electric car components such as powertrains and other electronic devices that are utilized in the company’s vehicles.
Tesla’s Gigafactory 3 would likely rival Gigafactory 1 in size once it’s completed, especially considering that the Shanghai-based facility will be producing both batteries and electric cars. Despite this, Elon Musk noted in the company’s Q2 2018 earnings call that Giga 3 would likely not cost as much as Gigafactory 1, which is expected to cost up to $5 billion once it’s complete. Musk’s initial estimate for Giga 3 is $2 billion, on account of optimizations that it learned from the Model 3 ramp.
“With respect to Gigafactory CapEx, I think we learned a tremendous amount with Gigafactory 1, and we’re confident that we can do the Gigafactory in China for a lot less. I think it’s probably closer to — this is just a guess, but probably closer to $2 billion, and that should be at a higher — and that would be sort of at the 250,000-vehicle per year rate. So I think we can be a lot more efficient with CapEx, and that would include at least a factory module and pack production, body shop, paint shop, and general assembly. Might even be less than that, but that’s about the right number for that,” Musk said.
A reporter from Beijing Business Daily noted that with the revised capital, around 30% of the funds are now ready for Tesla’s Shanghai Gigafactory. Perhaps even more notable were reports that the Shanghai government is assisting Tesla to obtain loans from Chinese banks to fund the construction of the facility.
It should be noted that Gigafactory 3 does not need to be fully completed before the facility could start building battery packs and electric cars. Gigafactory 1, for example, is less than 30% complete, but it is already supporting the demand for battery packs and powertrains from the Model 3 production ramp. The Model 3’s current production pace is no joke, either, as the company is reportedly on track to building at least 50,000 Model 3 this quarter.
With this in mind, Tesla only needs to get critical portions of Gigafactory 3 working before the facility could start producing vehicles. Such a strategy actually taps into a particularly impressive expertise of the country’s workforce, considering that China’s builders are proficient in quickly constructing modular structures. This type of construction was showcased by the country’s workforce when it completed the construction of a 57-story skyscraper in just 19 days back in 2015. If Tesla opts to adopt a similar construction method for Gigafactory 3, the facility could come alive well in time for the production of the company’s next big vehicle — the Tesla Model Y.
Elon Musk has noted that the Model Y would likely be built sometime next year. Being a crossover SUV, the Model Y would compete in one of the auto industry’s most competitive markets. The Model Y is expected to have a demand of up to 1 million vehicles per year, making it even more popular than the Model 3. Tesla has been quite tight-lipped about the facility where the Model Y would be constructed. Considering Tesla’s updates with Gigafactory 3, as well as Elon Musk’s past statements about the Model Y being built in China; there is a good chance that Giga 3’s vehicle production lines would likely be designed for the electric crossover.
Back in July, Tesla noted that it expects Gigafactory 3’s vehicle production to start roughly two years after construction begins. In true Tesla fashion, the company intends to ramp the facility’s production rate to 500,000 vehicles per year within 2-3 years. This aggressive timeline has been met by doubts in the United States, with Consumer Edge Research senior auto analyst James Albertine dubbing the company’s targets as “not feasible.” Fortunately for Tesla, its is a company that operates best when it is proving its skeptics wrong.
Elon Musk
Elon Musk just upped his Tesla stake further fueling SpaceX merger conversation
Elon Musk just collected a $116 billion Tesla payday and the timing is eye-opening
Elon Musk quietly collected one of the largest single-transaction paydays in corporate history on Monday. A Form 4 filed with the SEC on June 17, 2026 disclosed that Musk exercised 303,960,630 Tesla stock options from his 2018 compensation package, with the transaction dated June 16. No shares were sold on the open market.
The numbers are straightforward but striking. Musk exercised the options at a split-adjusted strike price of $23.34, with Tesla closing at $404.66 that day, putting the spread at $381.32 per share and generating roughly $115.9 billion in paper gains in a single transaction. To cover the exercise cost, Tesla withheld 17,531,857 shares through a net share settlement, meaning Musk paid nothing out of pocket.
For perspective, in 2018, Elon Musk’s award was originally approved by Tesla shareholders on March 21, 2018, and structured entirely around performance milestones that many analysts at the time called unreachable. Every tranche eventually vested. The original grant covered 20,264,042 shares at $350.02, which after Tesla’s 5-for-1 split in 2020 and 3-for-1 split in 2022 adjusted to 303,960,630 shares at $23.34. A Delaware court rescinded the award in January 2024, ruling the board was conflicted. As Teslarati reported, Tesla shareholders voted to ratify the package anyway in June 2024 by a wide margin. The Delaware Supreme Court reversed the decision in December 2025, finding full cancellation too extreme, and Tesla’s board signed an Implementation Agreement on April 21, 2026 to formally deliver the shares.
The Tesla and SpaceX merger everyone is talking about is quietly building
The timing and structure of the Form 4 filing carries more weight than a routine stock option exercise typically would. Musk exercised his 2018 Tesla award on June 16, a week into SpaceX completing its IPO and trading publicly, and giving SpaceX a public market valuation and share currency for the first time in the company’s history. A stock-for-stock merger between two companies requires the acquiring entity to have tradeable shares it can offer to the target’s shareholders, and SpaceX now has exactly that. At the same time, Musk just increased his direct Tesla voting power to approximately 20%, giving him greater influence over any shareholder vote that a merger would require. The restricted shares he received cannot be sold until 2033, which removes any near-term incentive to cash out and instead positions this stake as long-term structural collateral in a deal. Additionally, Musk’s two companies are already deeply intertwined through shared semiconductor fabrication at their joint TERAFAB facility in Austin, cross-company supply chain transactions, and Tesla’s $2 billion investment in xAI prior to the SpaceX-xAI merger.
Wedbush analyst Dan Ives has publicly placed the odds of a Tesla and SpaceX combination at 80% to 90% by early 2027. The Implementation Agreement that made Monday’s exercise possible was signed on April 21, 2026, roughly two months before the SpaceX IPO closed. That sequencing, building Musk’s Tesla ownership to its highest point ever immediately before SpaceX gains the public currency needed to acquire it, is either an extraordinary coincidence or a carefully staged foundation for the largest corporate merger in history.
Tesla deliveries got a big boost in expectations from Wall Street firm Goldman Sachs, who believes the company will report some stronger-than-expected numbers when the second quarter comes to an end in the coming weeks.
Goldman Sachs has raised its vehicle delivery forecast for Tesla (NASDAQ: TSLA) in the second quarter of 2026, signaling growing confidence in the electric vehicle leader’s near-term momentum despite mixed market signals. Analyst Mark Delaney lifted the bank’s Q2 estimate to 420,000 units from a previous 405,000, surpassing the Visible Alpha consensus estimate of 400,000.
The upward revision stems from stronger-than-expected sales data across key regions. Europe stands out with projected year-over-year growth of 85-90 percent, driven by robust demand for Tesla’s Model Y and refreshed offerings. China posted high single-digit gains, while markets like South Korea and Australia also contributed positive momentum. These gains help offset mid-teens declines in U.S. deliveries through May, where broader EV market headwinds and competition persist.
Goldman extended its optimism to the full year, increasing its 2026 delivery projection to 1.73 million vehicles from 1.72 million. Longer-term forecasts remain unchanged, with 1.88 million units expected in 2027 and 1.96 million in 2028. The bank also nudged its 2026 earnings-per-share estimate higher to $1.35 from $1.30, reflecting anticipated margin benefits from higher volumes and operational efficiencies.
Despite these positive adjustments, Goldman maintained its Neutral rating and $375 price target on Tesla shares. At current trading levels near $411, the stock sits about 8-9 percent above the target, highlighting ongoing valuation concerns even as delivery momentum builds. Tesla’s Q1 2026 deliveries totaled 358,023 units, setting a baseline for recovery expectations in the current period.
This update arrives as Tesla prepares to report official Q2 figures shortly after June 30. Investors and analysts will closely watch not only headline delivery numbers but also regional breakdowns, average selling prices, and progress on energy storage deployments and autonomous technology initiatives.
The move by Goldman Sachs underscores a broader narrative for Tesla: while legacy auto markets face softening demand and tariff uncertainties, Tesla’s global footprint and product pipeline provide resilience. Europe’s surge reflects pent-up demand and policy support for EVs, while China’s steady growth highlights Tesla’s competitive positioning against local rivals.
Tesla still has its work cut out for it, including U.S. price sensitivity and intensifying competition. Yet Goldman’s revision adds to a series of analyst notes suggesting Q2 could mark a turning point. As Tesla pushes toward higher production rates at facilities in Fremont, Shanghai, and Berlin, sustained execution will be key to validating these higher forecasts.
We have said numerous times that deliveries are becoming a less important metric in the grand scheme of things, as AI truly takes precedence in the company’s thesis.
For Tesla bulls, the Goldman note reinforces faith in underlying demand trends. For skeptics, the unchanged rating serves as a reminder that delivery beats alone may not immediately resolve valuation debates in a high-interest-rate environment. Tesla’s stock reaction will likely hinge on the official numbers and management commentary in the coming weeks.
Renowned investor Ron Baron, founder and CEO of Baron Capital, has once again demonstrated his unwavering faith in Elon Musk’s ventures.
Just after SpaceX’s record-breaking IPO, Baron announced he purchased an additional $1 billion in SpaceX (NASDAQ: SPCX) shares. This move pushes Baron Capital’s total holdings in the company to a staggering $25 billion in market value, underscoring one of the most successful private-to-public investment stories in recent history.
Baron’s relationship with SpaceX dates back to 2017, when his firm began investing approximately $1.75–2 billion through secondary markets and employee tender offers at valuations around $20–22 billion.
By the time of the IPO, which valued SpaceX at over $2 trillion with shares closing near $161, those early stakes had generated more than $13 billion in unrealized gains. Post-IPO, Baron’s position ballooned further, reflecting the company’s meteoric rise driven by reusable rocketry, Starlink’s global satellite internet constellation, Starshield defense applications, and ambitious plans for orbital infrastructure.
In a recent interview, Baron articulated his bullish outlook with characteristic enthusiasm.
Ron Baron said today that he bought $1 billion of @SpaceX IPO shares last Friday, and said that all of Baron Capital’s $SPCX holdings are now worth $25 billion.
“I think we’re going to make hundreds of billions of dollars; If you read the prospectus, you realize what they… pic.twitter.com/U8F471KtJS
— Sawyer Merritt (@SawyerMerritt) June 15, 2026
“I think we’re going to make hundreds of billions of dollars,” he stated, emphasizing that SpaceX’s achievements in rocketry and satellite technology are “not possible for anyone else to accomplish.” He envisions the company as a cornerstone of humanity’s multi-planetary future, potentially reaching valuations of $10–30 trillion within 10–15 years.
Baron has repeatedly affirmed he has no plans to sell, viewing SpaceX as a “lifetime investment” alongside Tesla.
Tesla bull Ron Baron reveals $100M SpaceX investment, sees 3-5x return on TSLA
This conviction stems from SpaceX’s unparalleled execution. The company has revolutionized access to space with Falcon 9 reusability, deployed thousands of Starlink satellites, and is advancing Starship for Mars missions and point-to-point Earth transport.
Baron highlights emerging opportunities like space-based AI data centers and direct-to-cell satellite connectivity, positioning SpaceX at the forefront of a new space economy projected to generate trillions in value.
Critics may question the lofty projections amid high valuations and execution risks, but Baron’s track record speaks volumes. His Tesla holdings, initiated in the mid-2010s, have also delivered outsized returns. As one of the largest institutional holders of SpaceX pre-IPO, Baron Capital’s funds, such as Baron Partners, benefited immensely from valuation markups.
Baron’s $1 billion IPO purchase signals deep confidence in SpaceX’s post-IPO trajectory. In an era of short-term market noise, his strategy exemplifies patient capital: backing visionary leadership and transformative technology.
For investors watching the space sector, it serves as a powerful endorsement that the final frontier may indeed yield the next great wealth-creation engine. As Baron puts it, SpaceX isn’t just building rockets—it’s trying to “save humanity” by expanding our horizons beyond Earth.
Elon Musk just upped his Tesla stake further fueling SpaceX merger conversation
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