

Investor's Corner
Tesla Gigafactory 3 moves forward with loan agreements from Shanghai banks: report
Tesla is making progress with its planned Gigafactory 3 in China. Not long after it was revealed that Tesla had sealed the deal to acquire an 864,885-square meter plot of land in Shanghai’s Lingang area, reports have emerged from Chinese media stating that local banks have signed low-interest loan agreements with the electric car maker.
The report, published by Chinese media, cited sources familiar with Tesla’s ongoing initiatives, who noted that a number of banks in Shanghai are already preparing to help fund the construction of Gigafactory 3. That said, the financial institutions reportedly providing Tesla with low-interest loans have yet to make formal announcements about their role in the construction of the electric car and battery factory.
Insiders reportedly close to Tesla’s plans for Gigafactory 3 have also related what could be the first glimpse of the facility’s planned operations, stating that the initial vehicle production line in Gigafactory 3 would be designed to manufacture the Model 3. Gigafactory’s vehicle production capabilities will include the final assembly of Model S and Model X vehicles as well, which would allow Tesla to dodge the steep import taxes currently weighing down the prices of its two flagship vehicles in the Chinese market.
Rumor: According to people close to Tesla, the main source of funds for the construction of the Shanghai Gigafactory is the low-interest loans of Shanghai local banks. Currently, banks have signed a loan agreement with Tesla. $TSLA #TeslaChina pic.twitter.com/MCOBn5QtcD
— vincent (@vincent13031925) October 18, 2018
While the pace of developments for the construction of Gigafactory 3 is remarkable, the progress of the project so far should not come as much of a surprise. Over the past few months, after all, Tesla has steadily been laying the foundations for the facility. The Chinese government has also openly supported the construction of the factory, with state media running several segments about how Gigafactory 3 is fully endorsed by the government.
This support was evident in the way Tesla’s loans and land acquisition were secured. China, for one, allowed Tesla to be the sole owner of Gigafactory 3, changing longstanding regulations in the process. Tesla’s bid for the 864,885-square meter plot of land in Shanghai’s Lingang area went unchallenged by any rival bidders as well. With this in mind, Tesla’s low-interest loan agreements with local banks appear to be yet another way for the government to show its support for the company.
In its Q3 2018 vehicle production and delivery report, Tesla noted that it was looking to accelerate the construction of Gigafactory 3, making the project’s already aggressive timeline even more ambitious. Tesla initially plans to have the factory start producing vehicles within two years after construction begins. With the company’s updated timeline, though, Gigafactory 3 could start building electric cars for the Chinese market sooner than expected. Once complete, Tesla estimates Gigafactory 3 to be capable of producing 500,000 vehicles per year.
Gigafactory 3 would become the electric car maker’s first facility that is capable of producing both battery packs and electric cars. During the Q2 2018 earnings call, Tesla CEO Elon Musk and CTO JB Straubel noted that Gigafactory 3 – despite its capability to build electric cars – would be less capital-intensive as the company’s other facilities in the United States. Musk even noted that the cost of Gigafactory 3 could be closer to $2 billion at the 250,000-vehicle-per-year rate. Explaining further, Straubel pointed out that the lessons learned with Gigafactory 1 and the Model 3 ramp will all be implemented in Gigafactory 3.
“We found a surprising number of ways to improve efficiency and speed and density as well at Gigafactory 1, and all those lessons will absolutely be shared with Gigafactory 3. In just recent weeks and months, we found some – certain areas of production that have been very capital intensive that we’ve been able to speed up with almost no additional CapEx by maybe 20%, even 25% or 30%,” Straubel said.
Elon Musk
Elon Musk affirms Tesla commitment and grueling work schedule: “Daddy is very much home”
The remarks came as Tesla shares crossed the $400 mark on the stock market.

Tesla CEO Elon Musk reiterated his commitment to the electric vehicle maker and its future projects this week, responding to speculation following his $1 billion purchase of TSLA stock.
The remarks came as Tesla shares crossed the $400 mark on the stock market, extending a rally fueled in part by Musk’s TSLA purchase.
Elon Musk’s nonstop work schedule
Amidst the reaction of TSLA stock to Musk’s $1 billion investment, Tesla owners such as @greggertruck noted that “Daddy’s home.” Musk replied, stating that “Daddy is very much home.” He then shared details of a packed weekend of work, which was definitely grueling but completely within character for a “wartime CEO.”
Musk did note, however, that he had lunch with his kids during the weekend despite his extremely busy schedule.
“Daddy is very much home. Am burning the midnight oil with Optimus engineering on Friday night, then redeye overnight to Austin arriving 5am, wake up to have lunch with my kids and then spend all Saturday afternoon in deep technical reviews for the Tesla AI5 chip design.
“Fly to Colossus II on Monday to walk the whole datacenter floor, review transformers and power production (excellent progress), depart midnight. Then up to 12 hours of back-to-back meetings across all Tesla departments, but with a particular focus on AI/Autopilot, Optimus production plans, and vehicle production/delivery,” Musk wrote in his post.
Wartime CEO
Wedbush analyst Dan Ives described Musk as operating in “wartime CEO mode,” highlighting autonomous driving and AI as a trillion-dollar market opportunity for Tesla. Musk reiterated this point late last month as well, when he outlined the several projects he is juggling among his numerous companies. At the time, Musk stated that he was busy with Starship 10, Grok 5, and Tesla V14. This was despite his notable presence on X.
With Tesla Master Plan Part IV being partly released, the company is entering what could very well be its most ambitious stage to date. To usher in an era of sustainable abundance, Tesla would definitely require a “wartime CEO,” someone who could remain locked in and determined to push through any obstacles to ensure that the company achieves its goals.
Elon Musk
Tesla analyst says Musk stock buy should send this signal to investors
“With Musk’s (Tesla stock) purchase, combined with the upward momentum for delivery expectations and robotaxi rollout, we are becoming more bullish.”

Tesla CEO Elon Musk purchased roughly $1 billion in Tesla shares on Friday, and analysts are now breaking down the move as the stock is headed upward.
One of them is William Blair analyst Jed Dorsheimer, who said in a new note to investors on Monday that Musk’s move should send a signal of confidence to stock buyers, especially considering the company’s numerous catalysts that currently exist.
Elon Musk just bought $1 billion in Tesla stock, his biggest purchase ever
Dorsheimer said in the note:
“With Musk’s (Tesla stock) purchase, combined with the upward momentum for delivery expectations and robotaxi rollout, we are becoming more bullish. This purchase is Musk’s first buy since 2020. To us, this sends a strong signal of confidence in the most important part of Tesla’s future business, robotaxi.”
Musk putting an additional $1 billion back into the company in the form of more stock ownership is obviously a huge vote of confidence.
He knows more than anyone about the progress Tesla has made and is making on the Robotaxi platform, as well as the company’s ongoing efforts to solve vehicle autonomy. If he’s buying stock, it is more than likely a good sign.
Tesla has continued to expand its Robotaxi platform in a number of ways. The project has gotten bigger in terms of service area, vehicle fleet, and testing population. Tesla has also recently received a permit to test in Nevada, unlocking the potential to expand into a brand-new state for the company.
In the note, Dorsheimer also touched on Musk’s recent pay package, revealing that William Blair recently met with Tesla’s Board of Directors, who gave the firm some more color on the situation:
“We recently participated in a meeting with Tesla’s board of directors to discuss the details of Musk’s performance package. The board is confident of its position in the Delaware case and anticipates a verdict by end of year. It does not expect a similar situation to occur under new Texas jurisdiction. Musk has the board’s full support, and we expect he’ll get more than enough shareholder support for this to pass with flying colors.”
Tesla stock is up over 6 percent so far today, trading at $421.50 at the time of publication.
Elon Musk
Elon Musk just bought $1 billion in Tesla stock, his biggest purchase ever
Prior to this latest move, Musk’s most recent purchase was for about 200,000 shares worth $10 million in 2020.

Tesla (NASDAQ:TSLA) shares rose on Monday after CEO Elon Musk disclosed a rare insider purchase of company stock worth about $1 billion.
A filing with the U.S. Securities and Exchange Commission (SEC) revealed that Musk acquired 2.57 million shares last Friday at various prices. The move represents Musk’s largest TSLA purchase ever by value, as per Verity data.
Elon Musk’s TSLA purchase
The disclosure sent Tesla shares up more than 8% in premarket trading Monday, as investors read the purchase as a notable vote of confidence, as stated in a CNBC report. Tesla stock had closed slightly lower Friday but remains more than 25% higher over the past three months. It should be noted that prior to this latest move, Musk’s most recent purchase was for about 200,000 shares worth $10 million in 2020.
Market watchers say the purchase could help shore up investor sentiment amid a volatile year for TSLA stock. Shares have faced pressure from a variety of factors, from year-over-year sales challenges due to the new Model Y changeover, political controversies tied to Musk, and reduced U.S. incentives for EVs under the Trump administration. Nevertheless, analysts such as Wedbush’s Dan Ives stated that Musk’s purchase was a “huge sign of confidence for Tesla bulls and shows Musk is doubling down on his Tesla A.I. bet.”
Tesla and Elon Musk
Musk already owns about 13% of Tesla, and his latest purchase comes as the company prepares for a key shareholder vote in November. Investors will decide whether to approve a compensation package for Musk that could ultimately be worth as much as $975 billion if ambitious market value milestones are achieved. The package has a long-term target of pushing Tesla’s market capitalization to $8.5 trillion, compared with about $1.3 trillion at Friday’s close.
Wall Street’s current consensus price target still implies a roughly 20% decline from current levels, though some Tesla bulls remain optimistic that the company could shift its focus toward autonomy, AI, and robotics. Musk has also asked shareholders to approve an investment into his latest venture, xAI.
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