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Tesla denies report on local battery partner for Gigafactory 3

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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.

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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.

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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. 

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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 launches new Model Y interior option

Produced at Gigafactory Shanghai, the update applies to all five-seat Premium Model Y configurations and started being seen on customer deliveries this week. The move marks the first major interior refresh for the compact crossover since its global debut.

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Credit: Tesla Malaysia | X

Tesla has rolled out a striking new interior choice for its best-selling Model Y in China, replacing the long-familiar white cabin with a fresh option: Zen Grey.

Produced at Gigafactory Shanghai, the update applies to all five-seat Premium Model Y configurations and started being seen on customer deliveries this week. The move marks the first major interior refresh for the compact crossover since its global debut.

The Zen Grey interior swaps the classic black-and-white contrast for a softer, more unified palette. Seats, door panels, and center console trim now feature a warm light-grey tone that covers far more surface area than before.

Previously, black accents on the console, door handles, and lower dashboard are now color-matched in the same pebbled vegan leather, creating a brighter, less clinical cabin.

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Tesla describes the material as durable and easy to maintain while delivering a noticeably more premium feel. Early photos and videos from Chinese owners show the new shade reflecting natural light beautifully, giving the spacious Model Y an even airier, more inviting atmosphere without sacrificing the minimalist design customers expect:

The change is not an added-cost upgrade but a direct replacement for the discontinued white interior on Shanghai-built vehicles. Customers configuring a new Model Y in China, Hong Kong, or Macau now see Zen Grey as the default light-colored choice.

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The update also flows to export markets supplied by Giga Shanghai, including Australia, New Zealand, South Korea, Japan, and the Philippines. Tesla has used its Chinese factory as an innovation hub before, and executives appear to be testing broader appeal with this subtler, warmer tone that avoids the high-maintenance reputation sometimes associated with bright white leather.

Beyond the interior, the refreshed Model Y from Shanghai includes minor exterior tweaks such as blacked-out badges on some trims and optional dark 20-inch wheels.

These changes arrive as Tesla faces stiff competition from domestic EV makers in its largest market. By refreshing the Model Y’s cabin without raising prices, the company is signaling continued commitment to value and constant improvement.

With over 1.2 million Model Y units already on Chinese roads, the Zen Grey launch gives existing owners a fresh talking point and new buyers another reason to choose Tesla. As deliveries ramp up this month, the updated interior is expected to become the dominant light-colored choice across the Asia-Pacific region.

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Tesla has not yet confirmed whether the Zen Grey will reach Fremont, Austin, or Berlin-built Model Ys, but Shanghai’s track record suggests the option could spread quickly if customer feedback remains strong.

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Tesla launches 200mph Model S “Gold” Signature in invite-only purchase

Tesla’s final 350-unit Signature Edition closes the book on two cars that changed everything.

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Tesla has announced a super limited Signature Edition run of 250 Model S Plaid and 100 Model X Plaid units as an invite only purchase in a bid to give its original flagship vehicles a proper send-off.

When the Model S first launched in 2012, the first 1,000 units sold were “Signature” editions that required a $40,000 deposit and cost nearly $100,000 each. Those early buyers were Tesla’s first real believers. This new Signature Edition deliberately echoes that moment, bookending a 14-year run with numbered collector hardware.

Both models are finished in an exclusive Garnet Red paint not available on any current Tesla production vehicle, with gold Tesla T badges up front, a gold Plaid badge and Signature badge at the rear, and a white Alcantara interior featuring gold Plaid seat badges, gold piping, Signature-marked door sills, and a numbered dash plate. The Model S adds carbon ceramic brakes with gold calipers. Every unit ships with Tesla’s Luxe Package, bundling Full Self-Driving (Supervised), four years of Premium Service, free lifetime Supercharging, and a Signature Edition key fob. Both are priced at $159,420, a roughly $35,000 premium over standard Plaid inventory.

The discontinuation is part of a broader strategic shift. At Tesla’s Q4 2025 earnings call, Musk described the decision as “slightly sad” but necessary, saying: “It’s time to basically bring the Model S and X programs to an end with an honorable discharge, because we’re really moving into a future that is based on autonomy.”

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The Fremont factory floor that built these cars is being converted to manufacture Optimus humanoid robots, with a target of one million units annually.

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Tesla FSD in Europe vs. US: It’s not what you think

Tesla FSD is approved in the Netherlands, but the European version differs from what US drivers use.

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Tesla FSD 14.3 [Credit: TESLARATI)

On April 10, 2026, the Dutch vehicle authority RDW granted Tesla the first European type approval for Full Self-Driving Supervised, making the Netherlands the first country on the continent to authorize Tesla’s semi-autonomous system for customer use on public roads.

As Teslarati reported, the RDW approval followed 18 months of testing, more than 1.6 million kilometers driven on EU roads, 13,000 customer ride-alongs, and documentation covering over 400 compliance requirements. Tesla Europe had been running public demo drives through cities like Amsterdam and Eindhoven since early 2026, giving passengers their first experience of the system on European streets.


The European version of FSD is not the same software US drivers use. The RDW’s own statement is direct, noting that the software versions and functionalities in the US and Europe “are therefore not comparable one-to-one.” We’ve compile a table below that captures the most significant differences between US-based Tesla FSD vs. European Tesla FSD that’s based on what regulators and Tesla have publicly confirmed.

Feature FSD US FSD Europe (Netherlands)
Regulatory framework Self-certification, post-market oversight Pre-market type approval required (UN R-171 + Article 39)
Hands requirement Hands-off permitted on highway Hands must be available to take over immediately
Auto turning from stop lights Available — navigates intersections, turns, and traffic signals autonomously Available in EU build — confirmed in Amsterdam demo footage handling unprotected turns and signalized intersections
Driving modes Multiple profiles including a more aggressive “Mad Max” mode EU build is more conservative by default and errs on the side of restraint when it cannot confirm the limit
Summon Available — Smart Summon navigates parking lots to driver Status unclear — not confirmed as part of the RDW-approved feature set; urban FSD approval targeted separately for 2027
Driver monitoring Camera-based eye tracking Stricter continuous monitoring with more frequent intervention alerts
Software version FSD v14.3 EU-specific builds that must be separately validated by RDW
Geographic restriction US, Canada, China, Mexico, Australia, NZ, South Korea Netherlands only; EU-wide vote pending summer 2026
Subscription price $99/month €99/month
Full urban FSD scope Available Partial — separate urban application planned for 2027

The approval comes as Tesla is under real pressure to grow FSD subscriptions globally. Musk’s 2025 CEO compensation package, approved by shareholders, includes a milestone requiring 10 million active FSD subscriptions as one condition for his stock awards to vest. Tesla hit one million subscriptions during its Q4 2025 earnings call, which is a meaningful start, but still a long way from the target. Opening Europe as a market for subscriptions, rather than just hardware sales, directly accelerates that number.

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Tesla has said it anticipates EU-wide recognition of the Dutch approval during summer 2026, which would extend FSD access to Germany, France, and other major markets through a mutual recognition process without each country repeating the full 18-month review. That timeline is Tesla’s projection, not a confirmed regulatory outcome. As Musk acknowledged at Davos in January 2026, “We hope to get Supervised Full Self-Driving approval in Europe, hopefully next month.”

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