Investor's Corner
Tesla continues Gigafactory 3 preparations with new hiring initiative, $145M real estate bid
Tesla’s preparations for Gigafactory 3 in Shanghai, China are underway, with the company recently listing a number of new job postings for the upcoming facility. The new Shanghai Gigafactory 3 job openings come amidst reports that Tesla is also in the process of acquiring a site where the battery and electric car facility would be constructed on.
Tesla has posted job openings for the Shanghai Gigafactory in the past. That said, the electric car maker posted a new set of job listings for the upcoming facility on October 11, including positions for Senior Managers for Construction, Mechanical Design Engineers for Building Infrastructure, and Electrical Design Engineers. These postings were listed on Tesla’s Careers page on its website, as well as the company’s official WeChat account. Overall, the updated Gigafactory 3 job listings invoke the idea that Tesla is assembling the team it needs to break ground and start the construction of the facility.
From the official recruitment advertisement of Tesla, the Shanghai Gigafactory has entered the stage of preparation for construction. Thanks @congcongcui1 for the info $TSLA #TeslaChina pic.twitter.com/rtTmJHbNAa
— vincent (@vincent13031925) October 12, 2018
The ongoing hiring ramp for Gigafactory 3 goes in line with Tesla’s recent statement in its Q3 2018 vehicle production and deliveries report. When the electric car maker released its findings for the past quarter, the company mentioned that it was accelerating the construction of the Shanghai factory. The update augmented the company’s initial timeline for the project, which estimated vehicle production to start two years after initial construction begins. In its Q3 report, Tesla noted that it expects Gigafactory 3 to be capital efficient, considering the lessons that were learned with the Model 3 ramp.
“We are accelerating construction of our Shanghai factory, which we expect to be a capital efficient and rapid buildout, using many lessons learned from the Model 3 ramp in North America,” Tesla wrote.
Apart from an ongoing hiring ramp, Tesla is reportedly attempting to acquire land for Gigafactory 3. Reports citing individuals familiar with the proceedings have indicated that Tesla is bidding on a plot of land with an auction price of $145 million. If Tesla’s bid is successful, the Shanghai government could formally allocate the land to the electric car maker as early as this month.
Despite the company being faced with a stream of skepticism and controversies over the online actions of CEO Elon Musk, the progress of Gigafactory appears to have been consistent over the past months. Last September, for example, a reporter from Beijing Business Daily noted that around 30% of Gigafactory 3’s initial capital has been secured. Reports from China’s local media also suggested that the Shanghai government is assisting Tesla in obtaining loans from local banks to help fund the construction of the battery and electric car factory.
Gigafactory 3 would be Tesla’s first major facility that combines both battery and electric vehicle production. Despite its vehicle production capabilities, Elon Musk noted during the Q3 2018 earnings call that he expects Gigafactory 3’s cost to be “closer to $2 billion” at the 250,000 vehicle-per-year rate, making it less capital-intensive as Gigafactory 1 in Nevada, which is expected to cost $5 billion when complete. One done, Tesla expects Gigafactory 3 to produce up to 500,000 vehicles per year.
It should be noted that while Tesla’s targets for Gigafactory 3 are incredibly aggressive, the company’s timeline is not that farfetched. Gigafactory 3, after all, does not need to be fully completed before it begins vehicle production. This is exhibited by Gigafactory 1, which is less than 30% complete but is already operating and supporting the battery needs of the Model 3 production ramp. Gigafactory 3 is also being built in China, a country with a construction workforce that has earned Elon Musk’s approval for its near-surgical efficiency and quickness.
Tesla (NASDAQ: TSLA) will report its earnings for the second quarter of 2026 this evening after market close, and investors and analysts are waiting anxiously to see what the company will report for the second three-month span of the year.
Analysts have already put out their expectations from a financial standpoint for the company’s second quarter, but what’s unknown is what Tesla plans to discuss during the call.
Financial Expectations
Wall Street consensus expectations put Tesla’s Earnings Per Share (EPS) at $0.53, while revenues are expected to come in around $26.4 billion.
This would compare to an EPS of $0.39 and $22.19 billion compared to Tesla’s Q2 2025. Last quarter, EPS came in at $0.41 on $22.387 billion of revenue. Additionally in Q1, Tesla beat analyst expectations, but shares dropped over 3 percent the following trading day.
What We Expect
In terms of discussions, Tesla earnings are pretty sporadic and depend on a handful of things, including current events, investor questions, and more.
Tesla uses a platform called Say to field questions from investors and analysts. These questions are what will be used during the call. Here are the top 5 from the Retail side and top 3 from the Institutional side:
Retail:
“Tesla has missed short-term guidance on robotaxi 3 earnings reports in a row, from 50% coverage of USA by end of 2025 to most recently 7 new cities in 1H26. What is keeping Tesla back from accomplishing these short term goals that they’ve set for themselves?”
“What are the main constraints to expanding robotaxi operations faster, and how do you see that lining up with Cybercab production?”
“What’s the current status of Optimus Gen 3 production ramp, initial deployment in factories, and external sales timeline/volume for 2027? What tasks can we expect the Optimus to perform by end of 2027?”
“To reward long-term Tesla retail shareholders for their loyalty, can you commit to achieving at least half of the goals outlined in your 2025 compensation plan before considering any offers to acquire or merge Tesla?”
“Why has growth of robotaxi vehicles stalled? When will we see cybercab start customer rides?”
Institutional
“Previously, you’ve said Tesla would lead the R&D while SpaceX would lead production for Terafab. Can you provide an update on how that division of responsibilities is evolving, and any additional clarity on the expected capital contributions from Tesla and SpaceX?”
“For autonomous driving, Tesla’s fleet created a huge data advantage by collecting billions of real-world miles. That advantage doesn’t yet exist for Optimus. How should we think about data availability and its impact on Optimus development?”
“Why is it necessary to limit robotaxi operations within specific zones within cities to start? Will every city have to be rolled out this way?”
Tesla will report earnings for Q2 this evening with the Shareholder Deck at 4 p.m. ET, with the call starting around 5:30 p.m. ET.
Elon Musk
Elon Musk handed Grok something no other AI company can get their hands on
Elon Musk says SpaceX will feed engineering data into Grok’s next model, avoiding restricted material.
Elon Musk said Tuesday that SpaceX will feed its internal engineering data into the next major training run for Grok, the AI model now folded into SpaceX following February’s merger. In a post on X, Musk wrote that SpaceX’s “massive corpus of world-class engineering data,” excluding anything restricted under U.S. arms export law, will be added during supplemental training of what he called the “2T run,” a reference to a roughly two trillion parameter model that would nearly double the parameters behind the latest Grok 4.5 that’s rolling out.
SpaceX’s massive corpus of world-class engineering data (excluding material blocked by ITAR) will be added during supplemental training of the 2T run.
This will dramatically improve Grok’s engineering capabilities. https://t.co/BbQEViFByn
— Elon Musk (@elonmusk) July 21, 2026
The excluded material that Musk is referring to would fall under the International Traffic in Arms Regulations (ITAR), which restricts export of technical data tied to defense and space hardware. That likely rules out propulsion specifics for Merlin and Raptor engines along with guidance and control details for SpaceX’s launch vehicles, but leaves manufacturing knowledge, materials science, and Starlink hardware design on the table.
The announcement extends a pattern that has been building since SpaceX’s Nasdaq debut in June, when the company went public with Grok and xAI’s Colossus supercomputer folded into the pitch to investors.
Days after that listing, SpaceX closed its $60 billion all stock acquisition of coding startup Cursor, giving xAI both enterprise software distribution and a stream of real world developer data to train on. Grok 4.5 launched July 8 running partly on that Cursor training data, with Musk describing it as roughly comparable to Anthropic’s Opus 4.7 but faster and cheaper to run.
Feeding SpaceX’s own engineering data into the next AI model follows the same logic Musk has applied across xAI’s sister companies. Tesla supplies real world driving data and manufacturing expertise, X supplies conversational data, and now SpaceX supplies aerospace engineering data built up since 2002.
Musk did not give a release date for the upcoming AI model, referred to elsewhere as Grok 4.6. He has said the two trillion parameter run is in its final training phase and expected to wrap this week.
In a pointed message on X, Elon Musk warned that firms maintaining significant short positions in SpaceX over time face “very low” survival probability.
The statement comes amid post-IPO volatility for the rocket company, now trading under the ticker $SPCX.
The survival probability of firms who maintain a significant short position in SpaceX over time is very low
— Elon Musk (@elonmusk) July 17, 2026
Five weeks after what was described as the largest IPO in history, the stock had fallen roughly 30% from its peak above $2.6 trillion, briefly surpassing Microsoft and Amazon in market value. Short sellers celebrated gains of about $8.7 billion, but Musk’s reply underscores his long-term conviction.
The warning directly echoes a detailed bullish analysis arguing that Starship’s cost reductions could unlock a multi-trillion-dollar space economy. Projects ranging from solar power beamed from orbit and asteroid mining to orbital data centers and Mars terraforming were projected to create over $100 trillion in new market capitalization.
In this vision, SpaceX acts as the essential infrastructure provider, akin to AWS for cloud computing, capturing monopoly-like revenues from launches, crew transport, and data traffic across a rapidly expanding frontier.
This is far from the first time Musk has targeted short sellers. With Tesla, he has repeatedly framed persistent bears as destined for major losses. In July 2024, Musk declared that once Tesla achieves full autonomy and volume production of Optimus robots, “anyone still holding a short position will be obliterated. Even Gates,” referencing Microsoft co-founder Bill Gates’ reported short bets.
Elon Musk reveals what Tesla stock surge could do to Bill Gates
Earlier, in 2018, he taunted shorts that they had “about three weeks before their short position explodes,” a remark followed by sharp stock gains. Musk has also called short selling “value destroying” and once suggested it “should be illegal,” viewing it as betting against innovation and progress.
Critics often dismiss Musk’s optimism as hype, especially when near-term metrics like quarterly deliveries or stock fluctuations disappoint.
Yet his pattern remains consistent: framing short positions against his companies as fundamentally misjudging exponential technological leaps. For SpaceX shorts, the message is clear: betting against multi-planetary ambitions and the infrastructure monopoly they enable carries existential risk for the firms involved.
As Musk and supporters see it, the space economy’s upside dwarfs Earth-bound valuation models, making today’s dips temporary in a decades-long ascent.
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