Investor's Corner
Tesla’s Gigafactory 3 is starting to attract the interest of China’s workforce
Tesla’s upcoming Gigafactory 3 in Shanghai appears to be attracting a lot of interest among China’s workers, with a recent recruitment day for the facility attracting a larger-than-expected number of applicants. Videos taken of the job fair show long lines of interested candidates waiting their turn to submit their applications for the factory.
Local media reports noted that Tesla’s job fair, which was held at the Lingang Industrial Zone, was initially set to end at 3:30 p.m. local time. To accommodate the number of candidates applying for a post in Gigafactory 3, though, Tesla ended up extending its hiring hours. Several applicants interviewed by local media also pointed out that they took the effort of traveling to Shanghai to apply for a job in the upcoming Tesla facility.
Update (Video) about:
Tesla Shanghai Gigafactory held a job fair in the Lingang Industrial Zone. As you can see from the video provided by Chinese media https://t.co/CmnfB7Cj1u ，huge amount candidates are interested to join $TSLA for GF3 development.#Tesla #China #TeslaChina pic.twitter.com/mSZxyf5S5w
— vincent (@vincent13031925) November 30, 2018
The warm reception to Tesla’s recent job fair in Shanghai bodes well for Gigafactory 3’s development. Tesla, after all, announced in its third-quarter vehicle delivery and production report that it is expediting the construction of the factory, which is expected to be capable of producing both battery packs and electric vehicles. In its report, Tesla noted that it expects Gigafactory 3’s buildout to be quick and efficient, particularly as the company would be applying the lessons it learned during the Model 3 production ramp on the facility.
Tesla’s business in China has been challenged this year due to additional import tariffs placed by the government against vehicles imported abroad. Despite this, though, Tesla’s brand has remained strong in the country, partly due to its reputation as the manufacturer of some of the most desirable electric vehicles in the market. Amidst China’s aggressive plan of adopting electric cars in its key cities, Tesla’s place as one of the first movers in the EV industry appears to be valued by the country as well.
The development and progress of Gigafactory 3 has been remarkable so far, thanks in part to the Chinese government’s support for the project. Over the past months, state media has run multiple segments about how the state fully supports the construction of the factory. This support became quite evident when China made the rare decision to allow Tesla to become the sole owner of Gigafactory 3. The electric car maker’s bid for the 864,885-square meter plot of land in Shanghai’s Lingang area went unchallenged by any rival bidders as well. Apart from these, low-interest loans from local banks were also secured quickly, with local news site Beijing Business Daily noting that around 30% of the facility’s funds have been ready since October.
China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%.
— Donald J. Trump (@realDonaldTrump) December 3, 2018
Apart from the apparent high interest among job applicants for Gigafactory 3, Tesla’s business would likely see a notable boost this quarter, thanks to changing headwinds in the ongoing US-China trade war. In a recent tweet, US President Donald Trump suggested that China has agreed to “reduce and remove” import tariffs on vehicles coming in from the United States. Considering that Tesla’s electric cars are weighed down by a 40% tariff, the reduction or removal of the duties would likely result in better Q4 figures.
Tesla has ambitious plans for Gigafactory 3, with the company aiming to produce up to 500,000 electric vehicles every year once construction is complete. Two of the company’s high-volume vehicles, the Model 3 sedan and the Model Y SUV, are expected to be produced in the upcoming facility, which would specifically cater to the Chinese market.
Investor's Corner
Tesla crushes Wall Street expectations, beats delivery estimates by over 15 percent
Tesla (NASDAQ: TSLA) beat Wall Street expectations of 406,000 vehicles delivered in Q2 by reporting 480,126 deliveries for the three months ending in June.
Tesla reported it delivered 467,762 Model 3 and Model Y units, while 12,364 Model S, Model X, and Cybertrucks switched hands during the quarter. The Model S and Model X were officially sunset this past quarter and will no longer be part of the company’s Production & Delivery reports moving forward.
🚨 BREAKING: Tesla delivered 480,126 vehicles in Q2, ANNIHILATING Wall Street expectations of 406,000. Production was reported at 451,758.
Deliveries:
Model 3/Y: 467,762
Other Models: 12,364Production:
Model 3/Y: 442,936
Other Models: 8,822 https://t.co/TTHwQAsKt8 pic.twitter.com/7qI4Zj6FE5— TESLARATI (@Teslarati) July 2, 2026
The quarter is a pleasant surprise and a good rebound from Q1, when Tesla slightly missed the Wall Street consensus of 365,645 cars by reporting 358,023 deliveries for the first three motnhs of the year.
Energy storage deployments also provided some strength in Tesla’s delivery report, hitting 13.5 GWh for Q2. This is a particular division of Tesla’s business that has been overwhelmingly robust over the past few years, truly being a strong point of the company’s overall model.
For the year, Tesla analysts still predict deliveries to trend in the 1.69 million unit region, a modest 3 to 5 percent increase from the 1.64 million cars the company delivered last year. Tesla will likely return to more sequential and noticeable year-over-year growth as the Cybercab project starts to ramp up considerably in the next few years.
Tesla has some other potential catalysts to spur vehicle deliveries, too. Not only is it expecting Cybercab to truly start making a change in the next few years, but other vehicles could be entering the company’s lineup.
Tesla sends production Cybercab with no steering wheel, pedals to on-road testing
The slightly longer Model Y L has been a highly speculated release candidate in the U.S. It has already done incredibly well in China, and U.S. buyers have been wanting slightly more interior space than the Model Y. Now that the Model X is gone, it is more needed than ever.
Q2 highlights a pretty stable automotive division within Tesla, and no true concerns arise from these figures, especially considering it managed to beat expectations convincingly.
Investor's Corner
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
Tesla short seller Michael Burry, the subject of the film “The Big Short,” where he was portrayed by Steve Carell, has revealed he has opened a new bet against the stock.
In a new update to his Substack newsletter in a post titled “Trading Post June 30, 2026,” Burry revealed a new set of bets against Tesla, Caterpillar, NVIDIA, Applied Materials Inc., and the iShares Semiconductor ETF.
In regard to Tesla, Burry wrote:
“And finally I shorted Tesla at 416.22. Happy it jumped back to this level.”
This means Burry likely opened his new short position after the company’s recent rally on Wall Street, which saw Tesla shares sink in mid-May, only to recover to well over the $400 mark. Currently, shares trade at around $427.
The company saw a big Tuesday as shares climbed considerably, over 10 percent. The size of the Tesla short was not provided, nor did Burry give any information on the position’s structure, the number of shares, dollar value, or whether options were used in the short.
The Tesla and SpaceX merger everyone is talking about is quietly building
Over the years, Burry has been one of the more vocal critics of Tesla, calling its share price “media inflated,” and saying it was “ridiculously overvalued” as recently as December.
The company has largely transitioned away from being known as an automotive company and instead is much more widely regarded as an AI play, mostly due to its Full Self-Driving efforts, Optimus robot development, and data collection related to both.
This has not pulled those skeptics away from being vocal about their distaste for how Tesla is valued, but there’s no denying that the company is a global force in many things, including sustainable energy, automotive, and AI.
Wedbush Securities is initiating stock coverage on SpaceX (NASDAQ: SPCX), marking the first comments on the company since it went public several weeks ago. Wedbush and its analyst handling coverage, Dan Ives, are widely bullish on fellow Musk company Tesla (NASDAQ: TSLA).
Ives wrote his first note initiating coverage of SpaceX shares on Wednesday with a $190 price target and an ‘Outperform’ rating. The firm believes the company is well positioned off of its IPO because of its wide array of projects, including AI compute power and infrastructure, connectivity projects, and launches.
“We view SpaceX as one of the most differentiated assets within the tech market with a strong footprint across its three core markets, with Starlink driving success with connectivity,” Ives wrote, “Starship launches leading to a demand flywheel and increasing deal flow for its Colossus clusters.”
Elon Musk called it Epic: The full story of SpaceX’s Starship Flight 12
Wedbush leans heavily on Starlink, which they say is the “profitability driver given the strength of its recurring revenue base of ~12 million subscribers as of June 5th.” Ives believes Starlink is still in the “early innings” of penetrating the global telecommunications and broadband market, as it only holds less than a 1 percent share. However, this number is sure to increase over time.
It also highlights the importance of Starship, which it says is an “essential layer” of SpaceX’s overall success. SpaceX developing and displaying the ability to reuse rockets is a major cost and reliability advantage “as it reduces the necessary hardware launch costs while generating a feedback loop for future flights to improve their launch flight rate without accelerating capex spend.”
Finally, SpaceX’s recent AI/Compute projects are also very elementary, Ives writes. It is worth mentioning Wedbush said its $190 price target is derived from a valuation forecast that sees the company yielding roughly $2.48 trillion of implied enterprise value.
There are also some factors that Wedbush did not take into account with its initial coverage. The firm wrote in the note:
“We note that there is optional value coming from Starship’s accelerating scale towards sub-$200/kg unit economics, orbital data centers, and enterprise AI monetization as these factors could drive meaningful upside but these face major hurdles, so we do not take that into account with our valuation.”
SpaceX shares are down just over 2 percent today, trading at around $167 at the time of publication.
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