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Tesla denies report on local battery partner for Gigafactory 3
The construction of Tesla’s Gigafactory 3 in China is moving in a rapid pace. Not long after the facility’s groundbreaking ceremony, the company’s 864,885-square meter plot of land in Shanghai’s Lingang Industrial Zone has become abuzz with activity. If recent reports are any indication, though, it appears that work is also underway to ensure that the company has all the partners it needs to produce batteries on the upcoming facility.
Citing individuals reportedly familiar with the proceedings, Reuters recently published a report suggesting that Tesla has reached a preliminary agreement with China-based battery provider Tianjin Lishen to supply batteries for Gigafactory 3. The publication’s sources have noted, though, that Tesla and Tianjin Lishen have reached no official, definitive deal as of date.
Among the details reportedly being worked out by Tesla and the battery supplier is the size of Tesla’s battery orders, as well as the specific size of the cells that would be produced in the Shanghai-based factory. Inasmuch as news of a possible battery supplier is compelling though, a Tesla spokesperson has denied that any official agreement between the electric car maker and the Chinese battery provider has been reached.
“Tesla previously received quotes from Lishen, but did not proceed further. We have not signed any agreement of any kind with them,” a Tesla spokesperson said.
Lishen, for its part, has noted that there is no agreement between itself and Tesla for Gigafactory 3’s batteries, at least for now.
The update suggested by Reuters’ sources point to Tesla tapping into the local Chinese market for a possible battery partner. So far, Tesla’s sole battery partner has been Panasonic, which has been producing the 18650 battery cells for the Model S and X in its Japan-based facilities, and the Model 3’s 2170 cells in Gigafactory 1 . Considering the size of the Chinese market, though, Panasonic’s resources would not be enough to meet the demand in the country. Elon Musk described this in a prior tweet.
Tesla will manufacture all battery modules & packs at China Giga, as we do today in California & Nevada. Cell production will be sourced locally, most likely from several companies (incl Pana), in order to meet demand in a timely manner.
— Elon Musk (@elonmusk) November 2, 2018
While reports of Tesla’s preliminary agreement with Tianjin Lishen are undoubtedly interesting, some aspects of the information provided by Reuters’ sources were a tad bit strange. For one, Elon Musk has stated that the first vehicle set to be produced in Gigafactory 3 is the Model 3, an electric car powered by 2170 cells. Despite Gigafactory 3 only producing the affordable versions of the electric sedan, it doesn’t make much sense for Tianjin Lishen and Tesla to be still undecided about the types of battery cells that would be needed for the upcoming facility.
If any, these recent reports of Tesla and it’s possible battery partner in China teases the accelerated pace of Gigafactory 3’s development and construction. The facility, after all, is currently following an incredibly ambitious timeline, with Tesla aiming to finish the initial construction of the factory by the end of summer. Tesla also aims to start producing the Model 3 before the end of 2019.
Perhaps the most notable factor in the construction of Gigafactory 3 though, is the apparent favor currently being extended to Tesla by the Chinese government. For one, Tesla was allowed to become the sole owner of Gigafactory 3 — a privilege not given to any other foreign carmaker operating in the country. Apart from this, Tesla was also granted low-interest loans from local Shanghai banks to fund part of the facility’s construction. China Construction Third Engineering Bureau Co., Ltd, the company tasked with the facility’s buildout, is also a subsidiary of China Construction, a government-owned company.
In a bold declaration on X, xAI CEO Elon Musk announced that its model will be capable of creating full movies by the end of the year. Quoting an xAI post showcasing a stunning AI-generated trailer for Homer’s The Odyssey, Musk simply stated: “Full movies by the end of the year.”
The quoted video, created entirely with the newly released Grok Imagine Video 1.5, demonstrates the rapid strides in AI video generation. Crafted by creator David Thompson, the 2-minute-plus trailer reimagines the ancient epic in the style of a 1970s classical Hollywood blockbuster. It features 36 meticulously consistent shots that form a cohesive narrative world.
Full movies by the end of this year https://t.co/kkBrngWA0X
— Elon Musk (@elonmusk) June 17, 2026
Its realistic nature is truly mind-blowing, and it’s pretty amazing to think that it cool to think it could create an entire movie soon.
The trailer reimagines The Odyssey as a whole, and opens with a concept board outlining the vision: a retelling of the story using 35mm film aesthetics, classical framing, and other elements.
There are a handful of things that truly outline Grok’s capabilities:
- Scale and Physics: A bloodied Spartan helmet rests on a sandy battlefield amid smoke, marching armies, and flocks of birds. Horses gallop, chariots charge, and warriors clash with believable weight and motion.
- Emotional Depth and Dialogue: Close-ups capture intense expressions, as characters deliver lines like a warrior’s grief-stricken speech on a rocking ship.
- Cinematic Workflow: It’s hard to believe AI created this trailer, as editing and suspense are clearly detailed in this trailer
Now, why is this a big deal? AI has been a real threat to the way movies have been made over the past several decades. It’s no secret that the various AI platforms out there are becoming more capable, but Musk has said that he believes things would be “watchable” by the end of this year, and by the end of 2027, Grok would be able to create “really good” movies.
There are several issues that remain, most notably the ability to remain cohesive throughout the length of a film, energy requirements, copyright questions for training data, and artistic intent. Hollywood has created some of the greatest cinematic masterpieces over the past 100 years, but 2026 could be the year AI not only assists but also independently authors cinema.
Tesla is continuing to push the boundaries of vehicle dynamics, as its latest published patent, US12654505B2, or “Suspension Actuator System for a Vehicle,’ which has finally been pushed through.
The design, which is credited to inventors Brian Lee Doorlag, Avraham Kagan, and Justin Sill, introduces a sophisticated hybrid suspension design that blends active motor-driven control with strategic passive elements to deliver superior ride quality, energy efficiency, and resilience against road imperfections, especially potholes.
Suspension Actuator System for a Vehicle@Tesla‘s US20240383297A1 patent introduces an innovative suspension actuator system that transforms vehicle suspension control through an intelligent combination of active and passive control elements.
By implementing both series and… https://t.co/vRvlOu3Dql pic.twitter.com/2WriXgpOvr
— SETI Park (@seti_park) November 27, 2024
At the heart of the system is an active control element powered by an electric motor. This motor drives a belt connected to a ball nut assembly and threaded screw, which adjusts the effective length of the suspension strut in real time.
By extending or retracting, the actuator can lift or lower the wheel more accurately, which can end up countering road disturbances. Sensors, including accelerometers and wheel position monitors, feed data to a suspension control system that processes inputs and commands the motor instantly.
This active component doesn’t work alone. A low-rate air spring mounts in parallel with the actuator. Its primary role is to offset much of the vehicle’s static weight, dramatically reducing the power demand on the motor.
Without this, the active system would constantly fight gravity, draining energy and generating heat. The air spring handles steady-state loads efficiently, allowing the motor to focus on dynamic adjustments.
Complementing this is a series of passive control elements—a spring and an adaptive damper—placed between the actuator and the wheel. This setup filters high-frequency vibrations before they reach the active motor, preventing it from overworking on minor inputs. The adaptive damper, potentially magnetorheological or valve-controlled, further tunes damping electronically for optimal comfort and stability.
How It Differs from Traditional Suspensions
Traditional passive suspensions compromise between comfort and handling, while pure active systems can be power-hungry and complex. Tesla’s hybrid approach resolves this by delegating tasks: the parallel air spring manages weight and low-frequency body motions, the series elements absorb rapid vibrations, and the active actuator tackles larger, lower-frequency events.
The result is a smoother, more isolated cabin experience. High-frequency road noise and harshness diminish, while the vehicle maintains precise control during cornering or acceleration. Energy efficiency improves, too—lower motor loads mean reduced battery drain, potentially extending range in electric vehicles.
How It Mitigates Potholes Specifically
Potholes are a major challenge because they provide a sudden drop to the wheel plunge, jarring the body of the vehicle, risking damage. The patent explicitly addresses this. Upon detecting a pothole (via sensors or predictive mapping), the control system activates
the motor to retract the strut, effectively pulling the wheel upward to minimize downward excursion. The series spring/damper cushions the impact, while the parallel air spring maintains overall support.
This proactive “wheel retraction” prevents sharp jolts, preserving passenger comfort and protecting components. Integrated with Tesla’s road roughness mapping patents, the system could anticipate potholes from fleet data, enabling preemptive adjustments for even smoother navigation.
Future Implications for Tesla Vehicles
This technology builds on Tesla’s existing adaptive dampers and air suspension that is seen in Cybertruck, but advances toward fully active control. It could roll out to future models, including refreshed Cybertrucks or next-gen vehicles, enhancing both daily drivability and off-road capability. By minimizing power use and complexity, it aligns with Tesla’s goals of efficiency and scalability.
In summary, US12654505B2 exemplifies Tesla’s engineering philosophy: intelligent integration over brute force. This hybrid suspension promises quieter, more comfortable rides and robust pothole defense, potentially setting a new standard for automotive comfort. As Tesla iterates, drivers can look forward to roads feeling far less rough.
The Tesla Cybercab got a huge nod of support from a Texas Department of Transportation official, who said the all-electric ride-hailing vehicle is “a tangible example of how quickly our transportation system is evolving.”
The Cybercab was present at the Texas Department of Transportation’s Texas Innovation Invitational, an event held each year that allows innovative companies to showcase advancements in transportation.
Tesla Cybercab specs revealed: range, curb weight, range ratings, and more
Marc Williams, the Texas Department of Transportation’s Executive Director, sat in a Cybercab and shared his thoughts in an extensive post on LinkedIn.
Williams’s comments show how Tesla, with its Cybercab, is leading the charge of passenger travel and how it’s changing so rapidly. He notes the absence of traditional driving controls as a telltale sign that the Cybercab is a catalyst for major automotive change, taking controls from drivers and turning them into full-time passengers.
“Observing this vehicle firsthand–from its design and butterfly doors to the cargo trunk configuration–provides a tangible example of how quickly our transportation system is evolving. Sitting inside the cabin, the complete absence of traditional driver controls underscores a significant shift in mobility and vehicle design. No steering wheel, no accelerator, no brake. Only a single touchscreen monitor.”
Tesla has had a great relationship with the State of Texas, especially with its Robotaxi ambitions. Currently, Texas has Tesla Robotaxi operating in multiple cities: Dallas, Austin, San Antonio, and Houston. The company’s main manufacturing plant is also located just outside Austin, and Tesla moved its headquarters to the state several years ago.
Texas DOT Executive Director Marc Williams experienced the production version of @Tesla CyberCab firsthand earlier today at the 2026 Texas Innovation Invitational #CyberCab #FSD @SawyerMerritt @TeslaNewswire pic.twitter.com/izoGOWaGz6
— Ash_Alpha (@durai_ashwin08) June 17, 2026
The Cybercab is a purpose-built, fully autonomous, two-passenger Robotaxi vehicle designed specifically for ride-hailing services. Tesla has said for years it would be built without a steering wheel or pedals present, although there is still quite a bit of debate among the community regarding that potential.
Earlier this week, we received official word that the EPA had provided the Cybercab with a Certificate of Conformity, giving Tesla permission to enter the vehicle into the chain of public commerce. It is officially ready for roads.
The big question for Tesla remains: Can it solve self-driving before the steering-wheel-less Cybercab officially enters production?
Elon Musk predicts Grok will start to challenge Hollywood by the end of 2026
Tesla patent aims to improve common on-road complaint
