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Tesla Gigafactory 3 on track to start Model 3 trial production in September
Tesla’s Gigafactory 3 is getting built at an unprecedented pace. From being a bare plot of land in January, Tesla and its construction partner have transformed the Gigafactory 3 site in Shanghai into an industrial area with a massive electric car factory taking shape. The progress of the project has been fast; too fast, in fact, according to an industry expert from China.
Local news agency The Global Times paid a visit to Gigafactory 3 on Sunday, where the publication was able to get some information about the project from one of the workers in the facility. According to the Gigafactory 3 worker, who opted to remain anonymous, the facility is on track to start building electric cars as early as September, notably ahead of Tesla CEO Elon Musk’s estimate.
Musk mentioned during Gigafactory 3’s groundbreaking ceremony that he expects the facility to start producing Model 3s by the end of the year, a timeline that was met with skepticism and mockery from Tesla’s critics. As it turned out, such a target was not only feasible, since China’s workforce, who are working on the site 24/7, is actually capable of beating Musk’s estimates. So quick is Gigafactory 3’s construction that the facility might end up breaking the record in China for fastest factory buildout to date (the record is currently at 17 months).
In a statement to the Times, Feng Shiming, executive director of Menutor Consulting Shanghai, noted that the pace of Gigafactory 3’s buildout is simply too fast, which could cause problems for the company. Feng believes that Tesla will not really start ramping its operations until next year when the suppliers for its locally-produced vehicles are entirely ironed out, though he ultimately notes that a trial production run in September could be feasible.
“The factory’s construction pace is too fast, which is set to leave some problems such as insufficient equipment testing and staff training. The target might be realized at the start of next year, and two or three months after that, its Model 3 can be put into the market on a large scale. Tesla is prepared for not realizing mass production within this year. Trial production in September is likely,” he said.
The current Gigafactory 3 buildout only represents one-third of what the electric car maker plans to construct on the site. The existing buildout has two structures under construction. One is a building that’s about three stories tall with a cement roof, which is already seeing parts of its walls being installed. Another structure is an expansive building that extends over almost half of the overall length of the construction site. This will be Tesla’s general assembly building for the Model 3 and Model Y, according to the construction worker who spoke to the Times during the publication’s visit.
China is the world’s largest electric car market, and Gigafactory 3 is Tesla’s key to competing on even ground against more affordable vehicles from local manufacturers in the country. Affordability appears to be Tesla’s primary strategy for Gigafactory 3, as Elon Musk has previously announced that the Shanghai-based site will be exclusively producing affordable variants of the Model 3 and Model Y, both of which are already Tesla’s most budget-friendly vehicles to date.
Elon Musk
Tesla showcases Optimus humanoid robot at AWE 2026 in Shanghai
Tesla’s humanoid robot was presented as part of the company’s exhibit at the Shanghai electronics show.
Tesla showcased its Optimus humanoid robot at the 2026 Appliance & Electronics World Expo (AWE 2026) in Shanghai. The event opened Thursday and featured several Tesla products, including the company’s humanoid robot and the Cybertruck.
The display was reported by CNEV Post, citing information from local media outlet Cailian and on-site staff at the exhibition.
Tesla’s humanoid robot was presented as part of the company’s exhibit at the Shanghai electronics show. On-site staff reportedly stated that mass production of the robot could begin by the end of 2026.
Tesla previously indicated that it plans to manufacture its humanoid robots at scale once production begins, with its initial production line in the Fremont Factory reaching up to 1 million units annually. An Optimus production line at Gigafactory Texas is expected to produce 10 million units per year.
Tesla China previously shared a teaser image on Weibo showing a pair of highly detailed robotic hands believed to belong to Optimus. The image suggests a design with finger proportions and structures that closely resemble those of a human hand.
Robotic hands are widely considered one of the most difficult engineering challenges in humanoid robotics. For a system like Optimus to perform complex real-world tasks, from factory work to household activities, the robot would require highly advanced dexterity.
Elon Musk has previously stated that Optimus has the capability to eventually become the first real-world example of a Von Neumann machine, a self-replicating system capable of building copies of itself, even on other planets. “Optimus will be the first Von Neumann machine, capable of building civilization by itself on any viable planet,” Musk wrote in a post on X.
Elon Musk
Tesla Cybercab production line is targeting hundreds of vehicles weekly: report
According to the report, Tesla has been adding staff and installing new equipment at its Austin factory as it prepares to begin Cybercab production.
Tesla is reportedly designing its Cybercab production line to manufacture hundreds of the autonomous vehicles each week once mass production begins. The effort is underway at Gigafactory Texas in Austin as the company prepares to start building the Robotaxi at scale.
The details were reported by The Wall Street Journal, citing people reportedly familiar with the matter.
According to the report, Tesla has been adding staff and installing new equipment at its Austin factory as it prepares to begin Cybercab production.
People reportedly familiar with Tesla’s plans stated that the company has been growing its staff and bringing in new equipment to start the mass production of the Cybercab this April.
The Cybercab is Tesla’s upcoming fully autonomous two-seat vehicle designed without a steering wheel or pedals. The vehicle is intended to operate primarily as part of Tesla’s planned Robotaxi ride-hailing network.
“There’s no fallback mechanism here. Like this car either drives itself or it does not drive,” Musk stated during Tesla’s previous earnings call.
Tesla has indicated that Cybercab production could begin as soon as April, though Elon Musk has noted that early production will likely be slow before ramping over time. Musk has stated that the Cybercab’s slow ramp is due in no small part to the fact that it is a completely new vehicle platform.
Tesla’s Cybercab is designed to work with the company’s Full Self-Driving (FSD) system and support its planned autonomous ride-hailing service. The company has suggested that the vehicle could cost under $30,000, making it one of Tesla’s most affordable models if produced at scale. Musk has confirmed in a previous X post that the vehicle will indeed be offered to regular consumers at a price below $30,000.
Musk has previously stated that Tesla could eventually produce millions of Cybercabs annually if demand and production capacity scale as planned.
News
Tesla VP explains latest updates in trade secret theft case
Tesla reportedly caught Matthews copying the tech into machines that were sold to competitors, claiming they lied about doing so for three years, and continued to ship it. That is when Tesla chose to sue Matthews in July 2024 in Federal court, demanding over $1 billion in damages due to trade secret theft.
Tesla Vice President Bonne Eggleston explained the latest updates in a trade secret theft case the company has against a former manufacturing equipment supplier, Matthews International.
Back in 2024, Tesla had filed a lawsuit against Matthews International, alleging that the firm stole trade secrets about battery manufacturing and shared those details with some of Tesla’s competitors.
Early last year, a U.S. District Court Judge denied Tesla’s request to block Matthews International from selling its dry battery electrode (DBE) technology across the world. The judge, Edward Davila, said that the patent for the tech was due to Matthews’ “extensive research and development.”
The two companies’ relationship began back in 2019, as Tesla hired Matthews to help build the equipment for its 4680 battery cell. Tesla shared confidential software, designs, and know-how under strict secrecy rules.
Fast forward a few years, and Tesla reportedly caught Matthews copying the tech into machines that were sold to competitors, claiming they lied about doing so for three years, and continued to ship it. That is when Tesla chose to sue Matthews in July 2024 in Federal court, demanding over $1 billion in damages due to trade secret theft.
Now, the latest twist, as this month, a Judge issued a permanent injunction—a court order banning Matthews from using certain stolen Tesla parts or designs in their machines. Matthews is also officially “liable” for damages. The exact amount would still to be calculated later.
Bonne Eggleston, a VP for Tesla, said on X today that Matthews is a supplier who “exploited customer IP through theft or deception,” and has no place in Tesla’s ecosystem:
Buyer beware: Matthews International stole Tesla’s DBE technology and is now subject to an injunction and liable for damages.
During our work with Matthews, we caught them red-handed copying our technology—including proprietary software and sensitive mechanical designs—into… https://t.co/Toc8ilakeM
— Bonne Eggleston (@BonneEggleston) March 10, 2026
Tesla calls this a big win and warns other companies: “Buyer beware—don’t buy from thieves.”
Matthews hit back with a press release claiming victory. They say an arbitrator ruled they can keep selling their own DBE equipment to anyone and rejected Tesla’s request for a total sales ban. They call Tesla’s claims “nonsense” and insist their 20-year-old tech is independent. Both sides are spinning the same narrow ruling: Matthews can sell their version, but they’re blocked from using Tesla’s specific secrets.
What are Tesla’s Current Legal Options
The case isn’t over—it’s moving to the damages phase. Tesla can:
- Push forward in court or arbitration to calculate and collect huge financial penalties (potentially $1 billion+ if willful theft is proven).
- Enforce the permanent injunction with contempt charges, fines, or even jail time if Matthews violates it.
- Challenge Matthews’ new patents that allegedly copy Tesla’s work, asking courts to invalidate them or add Tesla as co-inventor.
- Seek extra damages, lawyer fees, and possibly punitive awards under the federal Defend Trade Secrets Act and California law.
Tesla could also refer evidence to federal prosecutors for possible criminal trade-secret charges (rare but serious). Settlement is always possible, but Tesla’s fiery public response suggests they want full accountability.
This isn’t just corporate drama. It shows why trade secrets matter even when Tesla open-sources some patents, confidential know-how shared in trust must stay protected. For the EV industry, it’s a reminder: steal from your biggest customer, and you risk losing everything.
Tesla showcases Optimus humanoid robot at AWE 2026 in Shanghai
Tesla Cybercab production line is targeting hundreds of vehicles weekly: report
