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Tesla Gigafactory 3 on track to start Model 3 trial production in September

(Credit: The Global Times/Twitter)

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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.  

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“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.

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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 named by U.S. Gov. in $4.3B battery deal for American-made cells

What began as an open secret in the energy industry was confirmed by the U.S. Department of the Interior on Monday: Tesla is the buyer behind LG Energy Solution’s blockbuster $4.3 billion battery supply agreement.

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What began as an open secret in the energy industry is becoming more real after the U.S. Department of the Interior named Tesla as the stakeholder in the LG Energy Solution’s blockbuster $4.3 billion battery supply agreement.

Tesla and LG Energy Solution are expanding their partnership to build a LFP prismatic battery cell manufacturing facility in Lansing, Michigan, launching production in 2027. The announcement, made as part of the Indo-Pacific Energy Security Summit results, ends months of speculation.

“American-made cells will power Tesla’s Megapack 3 energy storage systems produced in Houston, creating a robust domestic battery supply chain.”, notes a press release on the U.S. Department of the Interior website.

Tesla starts hiring efforts for Texas Megafactory

Tesla has long utilized China’s Contemporary Amperex Technology Co. (CATL), the world’s largest LFP battery maker, as one of its primary suppliers. That relationship made financial sense for years, considering that Chinese LFP cells were cheap, abundant, and reliable. But with escalated tariffs on Chinese imports and an increasingly growing Tesla Energy business that’s particularly reliant on LFP cells for products including its Megapack battery storage units designed for utilities and large-scale commercial projects.

The announcement of a deepened partnership between LG Energy Solution and Tesla has strategic logic for both parties. For Tesla, it secures a tariff-compliant, domestically produced battery supply for its fast-growing energy division. LGES, now producing LFP batteries in Michigan, becomes the only major supplier currently scaling U.S. production, outpacing rivals like Samsung SDI and SK On. LG Energy Solution’s Lansing plant, formerly known as Ultium Cells 3, was previously operated as a joint venture with General Motors. LGES acquired GM’s stake in May 2025 and now fully owns the site, with a production capacity of 50 GWh per year. LG Energy said the contract includes options to extend the supply period by up to seven years and boost volumes based on further consultations.

For the broader industry, the ripple effects are significant. This deal signals that domestic battery manufacturing can be financially viable and not just aspirational. Utilities, energy developers, and rival automakers will take note as American-made LFP supply becomes a competitive reality rather than a distant promise.

For consumers, the benefits will take time but are real. A more resilient, U.S.-based supply chain means fewer price shocks from trade disputes, more stable Megapack availability for the grid storage projects that reduce electricity costs, and long-term downward pressure on energy storage prices as domestic production scales.

Deliveries are set to begin in 2027 and run through mid-2030, and as grid storage demand accelerates, reliable, US-made battery supply is no longer a future ambition. It is becoming a core requirement of the country’s energy strategy.

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Tesla plans for largest Australian Supercharger yet

The company has a 20-stall site in the city of Goulburn in New South Wales, which is an ideal location for trips between Sydney and Canberra, two major cities.

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Credit: Tesla

Tesla is planning to build its largest Supercharger in Australia yet, expanding on the infrastructure the company has built for electric vehicles.

The company has a 20-stall site in the city of Goulburn in New South Wales, which is an ideal location for trips between Sydney and Canberra, two major cities.

However, according to The Driven, a new Australian Supercharger is on the way, and it is going to be the biggest in the country, accounting for more than 25 stalls total. They will likely be V4 Superchargers, Tesla’s fastest piles that enable some serious range for cars that will plug in.

Tesla is operating 148 active Supercharger sites in Australia, with 80 of those being available to non-Tesla EVs as a part of the company’s initiative to make things accessible for all electric vehicle owners.

The expansion of Tesla Superchargers is welcome for all EV owners, especially as there are so many automakers that have access to the network. It is widely reliable and extremely dependable; it is tough to find a Supercharger location that is completely out of service.

The opening of the stalls will be welcome for the Tesla owners of Australia, especially as the Model Y continues to be a major contributor to the company’s prowess in the market.

Tesla’s sales performance in Australia showed a mixed but challenging picture in 2025, with the company delivering 28,856 new vehicles, marking a significant 24.8% decline from 38,347 units in 2024.

This represented the brand’s largest annual drop on record and the second consecutive year of decline, amid intensifying competition from Chinese EV makers like BYD and shifting buyer preferences toward SUVs. The Tesla Model Y remained a standout performer and Australia’s best-selling electric vehicle, with 22,239 deliveries, up 4.6percent year-over-year, accounting for about 77 percent of Tesla’s total sales.

The mid-year launch of the updated “Juniper” Model Y helped sustain momentum in the popular mid-size SUV segment.

In contrast, the Model 3 sedan struggled sharply, plummeting 61.3 percent to just 6,617 units, as consumers favored SUVs and faced growing options in the sedan category.

Despite the overall dip, Tesla held onto leadership in the EV segment, capturing roughly 28 percent of the BEV market. Australia’s EV market grew robustly, surpassing 156,000 sales and reaching 13 percent market share, up 38.7 percent from 2024, highlighting strong broader adoption even as Tesla faced headwinds.

Early 2026 data suggests a rebound, with EV sales nearly doubling year-over-year in February and the Model Y showing strong gains, positioning Tesla for potential recovery amid ongoing competition.

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Tesla Model Y L gets new entertainment feature

Beyond audio quality, Immersive Sound X aligns with Tesla’s ecosystem of over-the-air updates, potentially allowing future refinements.

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Credit: Tesla China

Tesla is including a new entertainment feature in the Model Y L, improving the vehicle even further and making it what appears to be the best configuration of the all-electric crossover globally.

Unfortunately, we in the U.S. do not yet have access to the vehicle, and the plans for it to enter the market remain up in the air, as CEO Elon Musk has said it could appear late this year. However, there is nothing concrete at this time.

Tesla’s latest enhancement to the Model Y L is a new Immersive Sound X feature, exclusive to the Model Y L.

It aims to transform the in-car listening experience into something truly cinematic. First introduced by Tesla China in October 2025, this advanced audio mode is now rolling out to deliveries in Australia and New Zealand, highlighting Tesla’s approach to region-specific premium upgrades.

At its core, Immersive Sound X leverages real-time sound extraction technology to create a customizable 3D soundstage. Using advanced algorithms, it analyzes audio tracks to separate direct sounds, such as vocals or lead instruments, from ambient elements like echoes and reverb.

The system then positions direct sounds front and center while diffusing ambient sounds to the side and rear speakers, simulating an expansive virtual environment. This results in a heightened sense of depth and spatial awareness, making listeners feel as if they’re in a concert hall or studio.

What sets Immersive Sound X apart from the standard Immersive Sound found in other Tesla models is its hardware dependency and enhanced processing. The Model Y L boasts an 18-speaker system with a subwoofer, compared to the 15-speaker setup, plus a subwoofer, in the Model Y Long Range’s previous premium audio configuration.

This upgrade provides more “kick” and precision, enabling finer control over the soundstage. Unlike traditional surround sound, which requires multi-channel mixes like Dolby Atmos, Immersive Sound X works with any stereo source from platforms like Spotify or Apple Music, so every owner will be able to use it.

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You can fine-tune the experience via an adjustable immersion slider, scaling the “size” of the virtual space to personal preferences. This caters to a more custom sound.

An Auto mode intelligently adapts based on media type, whether it’s music, podcasts, or videos, ensuring optimal immersion without manual tweaks. This feature is unavailable on standard Model Y variants (with 7 or 15 speakers) or Model 3 trims, underscoring Tesla’s strategy to differentiate higher trims through superior hardware and software integration.

Beyond audio quality, Immersive Sound X aligns with Tesla’s ecosystem of over-the-air updates, potentially allowing future refinements.

For audiophiles and casual listeners alike, it elevates mundane commutes into immersive journeys, proving Tesla’s commitment to blending cutting-edge tech with user-centric design.

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