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Tesla Gigafactory Shanghai’s lots fills with Model 3 as Q3 production ramp commences
The second phase of Tesla’s Gigafactory Shanghai may have caught most of the EV community’s attention recently due to its rapid completion, but the activities in the Phase 1 facility, which produces the Model 3, are nothing to scoff at, either. As could be seen in a recent flyover of the China-based factory, Tesla appears to be ramping the production of the Model 3 sedan to a significant degree, resulting in large numbers of vehicles being spotted on the site.
Aerial footage from Tesla enthusiast and drone operator Wuwa Vision suggests that Gigafactory Shanghai is currently ramping its output. A flyover on September 10, for example, showed large numbers of Model 3 filling up the facility’s parking areas. Car carriers in the complex were also abounding, picking up and transporting Model 3 from Giga Shanghai to Tesla’s local delivery centers.
What is rather interesting is that the Model 3 factory in Gigafactory Shanghai does not seem to be fully ramped yet. Tesla’s Q2 2020 Update Letter noted that the China-based plant had a run-rate of 200,000 Model 3 per year, and that was with the facility reportedly operating with only two working shifts. Once the Model 3 factory in Giga Shanghai fully ramps up, the facility output would likely reach even more impressive numbers.
The following months would likely be pivotal for Tesla’s push into China, especially considering that the electric car maker has all but completed its Model Y factory this quarter. With this milestone achieved, it would not be surprising if the following months would see trial production runs of the all-electric crossover. Giga Shanghai witnessed a similar ramp last year, when images of working production lines for the Model 3 started making their rounds online during the third quarter.
Despite the Model 3 still competing in China’s premium segment, the all-electric sedan has managed to find a lot of footing in the country’s auto market. The Tesla Model 3 currently stands as one of China’s best-selling all-electric cars, performing very well despite being higher-priced than many of its competitors. Part of this is due to the Model 3’s bang-for-your-buck nature, as exhibited by its tech, features, safety, and performance.
Gigafactory Shanghai will likely be one of Tesla’s key facilities this year, especially considering the electric car maker’s target of delivering 500,000 vehicles this year. Such a target is incredibly challenging due to the pandemic, which shut down the Fremont Factory for several weeks in the second quarter. But with the Fremont plant undergoing its Model Y ramp this third quarter and Giga Shanghai seemingly increasing its Model 3 output, Tesla may have a pretty good chance of pleasantly surprising the EV community this year.
Watch a recent drone flyover of Gigafactory Shanghai in the video below.
Elon Musk
Elon Musk explains why Tesla’s 4680 battery breakthrough is a big deal
Tesla confirmed in its Q4 and FY 2025 update letter that it is now producing 4680 cells whose anode and cathode were produced during the dry electrode process.
Tesla’s breakthroughs with its 4680 battery cell program mark a significant milestone for the electric vehicle maker. This was, at least, as per Elon Musk in a recent post on social media platform X.
Tesla confirmed in its Q4 and FY 2025 update letter that it is now producing 4680 cells whose anode and cathode were produced during the dry electrode process.
Why dry-electrode matters
In a post on X, Elon Musk stated that making the dry-electrode process work at scale was “incredibly difficult,” calling it a major achievement for Tesla’s engineering, production, and supply chain teams, as well as its partner suppliers. He also shared his praise for the Tesla team for overcoming such a difficult task.
“Making the dry electrode process work at scale, which is a major breakthrough in lithium battery production technology, was incredibly difficult. Congratulations to the @Tesla engineering, production and supply chain teams and our strategic partner suppliers for this excellent achievement!” Musk wrote in his post.
Tesla’s official X account expanded on Musk’s remarks, stating that dry-electrode manufacturing “cuts cost, energy use & factory complexity while dramatically increasing scalability.” Bonne Eggleston, Tesla’s Vice President of 4680 batteries, also stated that “Getting dry electrode technology to scale is just the beginning.”
Tesla’s 4680 battery program
Tesla first introduced the dry-electrode concept at Battery Day in 2020, positioning it as a way to eliminate solvent-based electrode drying, shrink factory footprints, and lower capital expenditures. While Tesla has produced 4680 cells for some time, the dry cathode portion of the process proved far more difficult to industrialize than expected.
Together with its confirmation that it is producing 4680 cells in Austin with both electrodes manufactured using the dry process, Tesla has also stated that it has begun producing Model Y vehicles with 4680 battery packs. As per Tesla, this strategy was adopted as a safety layer against trade barriers and tariff risks.
“We have begun to produce battery packs for certain Model Ys with our 4680 cells, unlocking an additional vector of supply to help navigate increasingly complex supply chain challenges caused by trade barriers and tariff risks,” Tesla wrote in its Q4 and FY 2025 update letter.
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Even Tesla China is feeling the Optimus V3 fever
As per Tesla China, Optimus V3 is “about to be unveiled.”
Even Tesla China seems to have caught the Optimus V3 fever, with the electric vehicle maker teasing the impending arrival of the humanoid robot on its official Weibo account.
As per Tesla China, Optimus V3 is “about to be unveiled.”
Tesla China hypes up Optimus V3
Tesla China noted on its Weibo post that Optimus V3 is redesigned from first principles and is capable of learning new tasks by observing human behavior. The company has stated that it is targeting annual production capacity of up to one million humanoid robots once manufacturing scales.
During the Q4 and FY 2025 earnings call, CEO Elon Musk stated that Tesla will wind down Model S and Model X production to free up factory space for the pilot production line of Optimus V3.
Musk later noted that Giga Texas should have a significantly larger Optimus line, though that will produce Optimus V4. He also made it a point to set expectations with Optimus’ production ramp, stating that the “normal S curve of manufacturing ramp will be longer for Optimus.”
Tesla China’s potential role
Tesla’s decision to announce the Optimus update on Weibo highlights the importance of the humanoid robot in the company’s global operations. Giga Shanghai is already Tesla’s largest manufacturing hub by volume, and Musk has repeatedly described China’s manufacturers as Tesla’s most legitimate competitors.
While Tesla has not confirmed where Optimus V3 will be produced or deployed first, the scale and efficiency of Gigafactory Shanghai make it a plausible candidate for future humanoid robot manufacturing or in-factory deployment. Musk has also suggested that Optimus could become available for public purchase as early as 2027, as noted in a CNEV Post report.
“It’s going to be a very capable robot. I think long-term Optimus will have a very significant impact on the US GDP. It will actually move the needle on US GDP significantly. In conclusion, there are still many who doubt our ambitions for creating amazing abundance. We are confident it can be done, and we are making the right moves technologically to ensure that it does,” Musk said during the earnings call.
Elon Musk
Tesla director pay lawsuit sees lawyer fees slashed by $100 million
The ruling leaves the case’s underlying settlement intact while significantly reducing what the plaintiffs’ attorneys will receive.
The Delaware Supreme Court has cut more than $100 million from a legal fee award tied to a shareholder lawsuit challenging compensation paid to Tesla directors between 2017 and 2020.
The ruling leaves the case’s underlying settlement intact while significantly reducing what the plaintiffs’ attorneys will receive.
Delaware Supreme Court trims legal fees
As noted in a Bloomberg Law report, the case targeted pay granted to Tesla directors, including CEO Elon Musk, Oracle founder Larry Ellison, Kimbal Musk, and Rupert Murdoch. The Delaware Chancery Court had awarded $176 million to the plaintiffs. Tesla’s board must also return stock options and forego years worth of pay.
As per Chief Justice Collins J. Seitz Jr. in an opinion for the Delaware Supreme Court’s full five-member panel, however, the decision of the Delaware Chancery Court to award $176 million to a pension fund’s law firm “erred by including in its financial benefit analysis the intrinsic value” of options being returned by Tesla’s board.
The justices then reduced the fee award from $176 million to $70.9 million. “As we measure it, $71 million reflects a reasonable fee for counsel’s efforts and does not result in a windfall,” Chief Justice Seitz wrote.
Other settlement terms still intact
The Supreme Court upheld the settlement itself, which requires Tesla’s board to return stock and options valued at up to $735 million and to forgo three years of additional compensation worth about $184 million.
Tesla argued during oral arguments that a fee award closer to $70 million would be appropriate. Interestingly enough, back in October, Justice Karen L. Valihura noted that the $176 award was $60 million more than the Delaware judiciary’s budget from the previous year. This was quite interesting as the case was “settled midstream.”
The lawsuit was brought by a pension fund on behalf of Tesla shareholders and focused exclusively on director pay during the 2017–2020 period. The case is separate from other high-profile compensation disputes involving Elon Musk.
Elon Musk explains why Tesla’s 4680 battery breakthrough is a big deal
Even Tesla China is feeling the Optimus V3 fever
