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Tesla Model 3 production in China is opening doors to a lucrative car-sharing market
Tesla’s plans for China are ambitious, even by the company’s standards. By the end of summer, Tesla expects the initial construction of Gigafactory 3 to be complete, and by year’s end, the company plans to start Model 3 production in the facility. As the dust settles after the groundbreaking ceremony for Gigafactory 3, though, a notable opportunity for Tesla has also presented itself.
China represents the world’s largest auto market, and its EV industry is growing fast. Amidst this growth, the country has also seen the rise of car-sharing services, which provide commuters a way to get from Point A to Point B without the hassles of public transportation or the responsibilities of owning a car. An analysis from the Nikkei Asian Review last year estimated that car-sharing services in China could hire out as many as 2 million vehicles in 2020 — a notable increase from the 100,000 cars used in 2017.
Since CC Clubs, China’s first modern car-sharing company, was launched in 2010, the industry has seen a notable rise. Amidst the government’s initiatives that make car ownership trickier, the presence of car-sharing services was widely appreciated by the commuting public. Over the years, car-sharing services in the country have steadily transitioned to electric vehicles as well, augmented in part by the government’s subsidies in production and sales of EVs, as well as restrictions placed on ICE vehicles in a number of Chinese cities.
In response to this trend, Bloomberg noted that legacy automakers are launching initiatives to catch China’s car-sharing trend. Last April alone, Didi Chuxing, one of China’s most prominent ride-hailing firms, formed an alliance with auto companies such as Volkswagen AG and Toyota Motor Corp. to develop vehicles explicitly designed for car-sharing. Volvo Cars and Geely Automobile Holdings Ltd. have also launched a car-sharing feature for its new models through its joint venture, Lynk & Co.
It is this particular market that Tesla can breach with the vehicles that will be produced in Gigafactory 3. Tesla has established itself as a maker of premium, desirable electric cars in China, but its vehicles have always been weighed down by import tariffs, which hike up the cars’ prices. With Gigafactory 3 in the picture, though, Tesla would be able to produce and sell its vehicles on the same playing field as local automakers. This presents a valuable advantage to Tesla, which intends to exclusively produce affordable versions of the Model 3 and Model Y in Gigafactory 3.
Ridesharing actually forms a large part of Elon Musk’s vision for the future. In his Master Plan, Part Deux, Musk described his plan of launching a ridesharing service comprised of fully autonomous vehicles. During the third-quarter earnings call, Musk elaborated on his idea, stating that Tesla would be open to the idea of deploying its own fleet of vehicles in areas where there are few electric cars.
“Tesla will for sure operate its own ride-hailing service. There will be a company-owned fleet where there aren’t enough customer cars to be rented out. So if we find in a particular metro (where) there aren’t enough customers who are willing to add their car to the shared fleet, that’s where we’d supplant with the company-owned fleet. So that’s why it’s sort of a combination of the Uber-Lyft thing and Airbnb. We would charge something comparable to how you’d say the App Store works, or I don’t know, we’d charge 30% or something in order for somebody to add the car to the fleet. I think that’s a pretty sensible way to go.”
While Elon Musk’s Tesla Network would not be launched in China in the near future (Full Self-Driving is still under development and regulations for autonomous vehicles are yet to be decided), rolling out a simpler, more basic form of the service in the country would most likely bode well for the company. By deploying fleets of affordable, locally produced Model 3 in key cities for car-sharing, Tesla would likely be able to establish itself as a key player in China’s car-sharing market.
For now, Tesla’s entry into China’s car-sharing industry would likely depend on the progress of Gigafactory 3’s construction. With government support, there is little doubt that the facility would be completed within its target timeframe. If Tesla can keep up and establish a Model 3 assembly line on time, it might not be long before China’s car-sharing market welcomes another large, potentially dominant player.
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Tesla just unlocked sales to 50,000+ government agencies
It marks a significant step in expanding Tesla’s presence in the public sector, where procurement processes have traditionally slowed electric vehicle adoption.
Tesla just unlocked sales to over 50,000 government agencies by entering a new agreement with Sourcewell, a purchasing cooperative.
Tesla entered a new master purchasing agreement with Sourcewell, the largest government purchasing cooperative in the U.S. This will enable streamlined sales of its EVs to more than 50,000 U.S. public entities. Tesla entered Designated Contract 0813525-TES, and the agreement covers Model 3, Model Y, and Cybertruck, and potentially other vehicles the company could release.
It marks a significant step in expanding Tesla’s presence in the public sector, where procurement processes have traditionally slowed electric vehicle adoption.
The deal allows eligible agencies, including cities, school districts, state governments, and higher-education institutions, to purchase Tesla vehicles directly through Sourcewell without conducting their own lengthy competitive bidding or request-for-proposal (RFP) processes.
Pricing is pre-negotiated and capped, providing transparency and predictability. Agencies simply register for a Sourcewell account online or by phone and place orders under the existing contract. This cooperative model aggregates demand across thousands of members, reducing administrative costs and time while ensuring compliance with public procurement rules.
For Tesla, the agreement removes major barriers to government fleet sales. Public-sector procurement cycles often stretch 12 to 18 months due to bidding requirements and committee reviews.
Tesla buyers in the U.S. military can get $1,000 off Cybertruck purchases
By securing the master contract, Tesla gains immediate, simplified access to a massive customer base that previously faced friction in adopting EVs. The company highlighted in its announcement that the partnership will help these 50,000-plus agencies “save thousands of $$$ in operating costs for their vehicle fleet over time” through lower maintenance, energy efficiency, and the elimination of tailpipe emissions.
The initial four-year term runs through November 13, 2029, with options for up to three one-year extensions, offering long-term stability for both parties.
Sourcewell’s role is central to execution. As a cooperative purchasing organization, it negotiates and manages vendor contracts on behalf of its members, then makes them available nationwide. Participating entities contact Tesla’s dedicated fleet team or Sourcewell representatives to complete purchases, bypassing redundant paperwork.
This structure accelerates fleet electrification while maintaining fiscal accountability—agencies receive pre-vetted pricing and terms without reinventing the wheel for each vehicle order.
The partnership positions Tesla to capture a larger share of the public fleet market, where total cost of ownership often favors electric vehicles once procurement hurdles are removed.
For government buyers, it translates to faster deployment of sustainable fleets, reduced long-term expenses, and alignment with environmental mandates. As more agencies transition, the contract could contribute to broader EV infrastructure growth and taxpayer savings across the country.
Elon Musk
How much of SpaceX will Elon Musk own after IPO will surprise you
SpaceX’s IPO filing confirms Musk will maintain his voting power to make key decisions for the company.
Elon Musk will retain dominant voting control of SpaceX after it goes public, according to the company’s IPO prospectus that was filed with the SEC. The filing reveals a dual-class equity structure giving Class B shareholders 10 votes each, concentrating power with Musk and a handful of other insiders, while Class A shares sold to public investors carry one vote.
Musk holds approximately 42% of SpaceX’s equity and controls roughly 79% of its votes through super-voting shares. He will simultaneously serve as CEO, CTO, and chairman of the nine-member board after the listing. Beyond that, the filing includes provisions that may limit shareholders’ influence over board elections and legal actions, forcing disputes into arbitration and restricting where they can be brought.
The case for Musk holding this level of control is grounded in SpaceX’s actual history. The company’s most important bets, from reusable rockets to a global satellite internet constellation, were decisions that ran against conventional aerospace thinking and would likely have faced resistance from a board accountable to investor gains. Fully reusable rockets were considered economically irrational by established industry players for years. Starlink, which now generates over $4 billion in annual operating profit, was widely dismissed as financially unviable when it was proposed. The argument for concentrated founder control seems straightforward, and the decisions that built SpaceX into what it is today required someone willing to ignore consensus and absorb years of losses.
SpaceX files confidentially for IPO that will rewrite the record books
For context, Musk’s position is significantly more dominant than Zuckerberg’s at Meta. The comparison with Tesla is also worth noting. When Tesla did its IPO in 2010, it did not issue dual-class shares. Musk has only recently pushed for enhanced voting protection, proposing at least 25% control at Tesla in 2024 after selling shares to fund his Twitter acquisition left him with around 13%.
SpaceX has clearly learned from that experience and structured the IPO differently by planning to allocate up to 30% of shares to retail investors, roughly three times the typical norm for a large offering. The roadshow is expected to begin the week of June 8, with a Nasdaq listing rumored to be a $1.75 trillion valuation and a $75 billion raise.
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Tesla bolsters App with new safety, insurance, and storage features
The Tesla Smartphone App is one of the biggest and best features and advantages owners have. Everything from moving the vehicle with Summon, to getting Navigation sent to the car, to preconditioning the cabin can be done with the Tesla App.
Tesla is bolstering its smartphone App with a series of new features to streamline operations for owners. The new additions include fixes to safety, its in-house insurance offering, and storage management for Dashcam clips.
The Tesla Smartphone App is one of the biggest and best features and advantages owners have. Everything from moving the vehicle with Summon, to getting Navigation sent to the car, to preconditioning the cabin can be done with the Tesla App.
But in classic Tesla fashion, the company is aiming to improve the offerings of the app, and it is doing so with a handful of new features. They were first discovered by Tesla App Updates.
Tesla Insurance – Safety Score 3.0
This is truly part of the Spring 2026 Update, but Tesla has now given more transparency on how FSD has saved people money on their premiums.
Tesla intertwines FSD with in-house Insurance for attractive incentive
Additionally, Tesla is now automatically awarding a Safety Score of 100 for every mile traveled on Full Self-Driving (Supervised).
Update Tracking
Updates traditionally appear on the App or on the Center Touchscreen in the car. There is nothing better than seeing that Green Arrow at the top of the screen, or opening your app and seeing that there is a Software Update available.
Now, there will be no need to manually check the app and initiate the download. Tesla is enabling a new feature that will automatically download updates for you.
Storage Management
Your USB drive can now be remotely formatted, and old Dashcam clips can be deleted straight from the phone. When you record a lot of things using the Dashcam feature, that storage fills up pretty quickly.
Now, manually deleting the Dashcam videos is easier than ever.
Trailer Light Test
This is perhaps the coolest and most crucial addition to the Tesla App, as those who tow and haul will now be able to trigger a diagnostic light sequence from the app while standing behind your trailer to ensure the brake lights work.
Verifying your trailer lights are connected properly and operating normally and as intended is normally a massive hassle.
Now, a new trigger will be available to initiate a diagnostic light sequence directly from your phone.
Tesla just unlocked sales to 50,000+ government agencies
How much of SpaceX will Elon Musk own after IPO will surprise you
