Investor's Corner
Tesla Model 3 production in Gigafactory 3 to begin in second half of 2019: report
The development of Tesla’s Gigafactory 3 continues to move at a rapid pace, with recent reports suggesting that electric car production in the upcoming facility could begin as early as the second half of 2019. Provided that there are no delays in the construction of the factory itself, and provided that Tesla can ship and set up its production lines on time, the latter half of 2019 could signal the beginning of Model 3 production in China.
Local media outlet Caijing.com noted that the factory is about to begin construction, particularly since the 864,885-square meter plot of land in the Lingang Industrial Zone has been leveled. In a post on its official WeChat account, the Shanghai government further indicated that Mayor Ying Yong and Vice Mayor Wu Qing have met with Tesla’s leaders in China while checking the company’s new vehicles like the Model 3. During their visit, the Shanghai officials reportedly encouraged parties involved in the project to expedite the construction of Gigafactory 3 even more.
The progress of Tesla’s Gigafactory 3 has been nothing short of remarkable. When Elon Musk announced the target timeline for the project earlier this year, the company’s critics were immediately skeptical. Tesla initially noted that vehicle production in Gigafactory 3 would start roughly two years after the facility’s construction begins, ramping to an output of 500,000 vehicles per year 2-3 years after. The timeline, which could only be described as classic Elon Musk, was met with doubts from Wall Street. Consumer Edge Research senior auto analyst James Albertine, for one, dubbed Gigafactory 3’s timeline as “not feasible.”
Despite its initial timeline already being met by raised eyebrows from Wall Street, Tesla announced an even more aggressive target for the project after its stellar third quarter. In its Q3 vehicle production and deliveries report, Tesla noted that it was accelerating the construction of Gigafactory 3. The company also noted that it expects the facility’s construction to be rapid and capital-efficient, thanks to lessons learned from the Model 3 ramp in the United States.
Beyond the lessons from the Model 3 ramp, credit is due to the Chinese government for its support for Tesla and the upcoming factory. Local state media has been openly supportive of the project and Tesla as a whole, and the government even bent its rules a little by allowing the electric car maker to become the sole owner of Gigafactory 3. The government’s support became particularly evident when Tesla went unchallenged in its bid for an 864,885-square meter plot of land in Shanghai’s Lingang area, as well as in the rapid release of low-interest loans for the project from local Shanghai banks.
November 29th 2018, Tesla Direct Experience Center officially grand opening at the Wenzhou Fortune Experience Center. To date, Tesla has more than 44 direct experience centers and service centers in mainland China 🇨🇳 .$TSLA #Tesla #China #TeslaChina pic.twitter.com/X8nJHVJCNz
— vincent (@vincent13031925) November 30, 2018
The Chinese government’s favor for Tesla has allowed the company to maintain a strong brand in the country, despite challenges posed by a 40% import tariff placed on the Model S and Model X due to the trade war between China and the United States. Even before US President Donald Trump announced on Twitter that the Chinese government has agreed to “reduce and remove” import tariffs on vehicles from the United States, Tesla’s electric cars, particularly the Model 3, have been garnering a lot of interest among Chinese consumers. This interest became evident during a recent job fair at the Lingang Industrial Zone, when Tesla was forced to extend its hiring hours due to the overwhelming number of applicants for job openings at Gigafactory 3.
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Considering China’s reputation for building large-scale facilities in record time, an initial Model 3 production run in Gigafactory 3 by the second half of 2019 is actually quite feasible. With the country’s capability to construct the facility quickly, the start of Model 3 production in China next year would likely be limited only by Tesla’s capability to ship and set up its vehicle production lines on time. If Tesla can accomplish this, there is very little that can go in the way of Gigafactory 3 producing the Model 3 for the local Chinese market before 2019 ends.
Tesla has the potential to be a force in China’s auto market, particularly as the country is aggressively pushing the electrification of its transport sector. China is on track to sell 2 million electric vehicles by 2020 and attain an ICE to EV ratio of 1:1 by 2030. Tesla’s Gigafactory 3, which is expected to produce 500,000 cars per year, could go a long way in helping the country achieve its own ambitious electric car goals, particularly as the company is expected to produce its two mass-market vehicles in the facility — the Model 3 sedan and the Model Y SUV.
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SpaceX (NASDAQ: SPCX) reported a beat in revenues and EBITDA in its first earnings call report while also minimizing losses as its business continues to gain momentum.
After its IPO in July, SpaceX saw some tough losses on Wall Street due to a major selloff after a delay in its 13th Starship test flight. The ship launched later that week and completed what was arguably the most successful IFT operation in the Starship program’s history.
Nevertheless, the company is continuing on and reported some encouraging financials while also promoting what appears to be a robust outlook moving forward in its Space, AI, and Connectivity divisions.
SpaceX to report first-ever earnings today: here’s what to expect
Earnings Results
- Revenues: $7.8 billion reported vs. $6.7 billion expected
- Adjusted EBITDA: $3.5 billion vs. $2 billion expected
- Net loss of $541 million, an improvement of $467 million from net loss of $1.0 billion
Additionally, CFO Bret Johnsen had these comments:
“2026 has been a momentous year so far, and the second quarter demonstrated the true power of SpaceX. Revenue growth accelerated across all our business segments and we delivered strong operating leverage, with significant margin expansion led by our new AI compute agreements. Our unparalleled leadership in launch, Starlink subscriber growth, new enterprise and government partnerships, and best-in-class AI infrastructure underscore our ability to drive meaningful scale and deliver attractive returns. As a newly public company, we are delighted to welcome our broad base of shareholders and bondholders. We ended the second quarter with $100 billion of cash, cash equivalents, and marketable securities, and $47.5 billion in backlog. This financial strength gives us substantial capacity to invest in Starship, Starlink Broadband and Mobile satellites, and our AI platform, while maintaining a disciplined long-term capital allocation framework.”
Space Business Highlights
SpaceX shared some of its biggest Space Business Highlights for Q2:
- Space revenues grew 55% sequentially and 29% year-over-year to $962 million, driven by a higher number of large customer launches and a favorable customer shift compared to the prior year
- Total costs and expenses for the Space segment were up by $389 million year-over-year, as we continued to accelerate R&D investments in our Starship program, which we believe will reduce the cost to orbit by 99% or more relative to the historical average, and unlock significant revenue potential across all business segments
- Leading launch provider for the world with 78 launches and 1,041 metric tons of mass to orbit deployed over the six months ended June 30, 2026, primarily allocated to Connectivity for the deployment of our Starlink constellation
- Starship V3 development continued to advance towards full and rapid reusability:
- Completed Starship V3’s first suborbital mission in May, Flight 12, which achieved a successful lift off from our new Starbase pad, a precision landing of Starship’s upper stage, and deployment of modified V2 Starlink satellites
- Subsequent to the second quarter, completed Starship Flight 13 in July, which achieved all flight objectives including deploying 20 production V3 satellites, demonstrating in-space relight of a Raptor engine, and executing the softest ever splashdown of Starship, providing critical views of an intact heatshield
SpaceX will report its earnings today at 4:30 P.M. EDT.
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Elon Musk issued a second pointed warning to SpaceX short sellers on Tuesday, just hours before the company was set to release its first quarterly earnings as a publicly traded firm. Responding to a report highlighting elevated short interest, Musk wrote on X: “I try to warn them, but they just double down …”
The comment came as data from S3 Partners showed roughly 95 percent of available SPCX shares to borrow were on loan, translating to about 34 percent short interest as a percentage of the float. The stock has traded under pressure since its record-breaking IPO in June 2026, declining significantly from early peaks.
I try to warn them, but they just double down … 🤷♂️
— Elon Musk (@elonmusk) August 4, 2026
This marks the second such message from Musk in under three weeks.
On July 17, amid post-IPO volatility, he stated: “The survival probability of firms who maintain a significant short position in SpaceX over time is very low.” At that time, SPCX had fallen roughly 30 percent from its peak above a $2.6 trillion valuation, with short sellers reportedly realizing gains of about $8.7 billion.
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Musk’s warning aligned with optimistic analyses projecting that Starship-driven cost reductions could enable a multi-trillion-dollar space economy through applications such as orbital solar power, asteroid mining, data centers, and Mars-related projects, positioning SpaceX as critical infrastructure.
SpaceX is scheduled to report second-quarter results after the market close later today, followed by a webcast. Analysts anticipate revenue near $6.9 billion, reflecting growth in Starlink, launch services, and AI-related segments. The earnings release precedes a major lockup expiration on August 6 that could free hundreds of millions of insider shares.
Musk has a long track record of confronting short sellers, particularly regarding Tesla, where he has argued that persistent bearish positions underestimate transformative technologies. Critics view his optimism as overly ambitious given near-term stock fluctuations, while supporters see temporary dips as opportunities in a longer-term expansion of the space economy.
As SpaceX opens its books to public scrutiny for the first time, the high short interest and Musk’s repeated cautions set the stage for heightened market attention on the results and management’s commentary.
Elon Musk’s space exploration company, SpaceX (NASDAQ: SPCX), is set to report its earnings for the second quarter today in what will be its first-ever earnings call since going public in July.
SpaceX is trading down roughly 25 percent from its IPO. These early stock signals are usually a bit tumultuous, and considering this is the first company actively launching rockets that is available on the stock exchange, investors might have a tendency to be a bit skittish.
However, there are going to be some details that investors will hear for the first time today on the earnings call. Here’s what to look for:
Wall Street Expectations
Revenue is expected to fall somewhere around $6.8 billion, and will be heavily driven by Starlink, which is SpaceX’s widely popular satellite internet platform that has been adopted by numerous airlines, cruise ships, and other maritime operations. It is also available for consumers at home or in their cars.
Earnings Per Share (EPS) expectations fall at a net loss of $0.23 per share. Wall Street sees this as a total net loss of roughly $1.9 billion.
EBITDA is expected to come in between $2 billion and $2.1 billion.
What Investors Want to Know
Tesla uses the Say platform to help work with both retail and institutional investors to answer relevant and quality questions that address concerns or questions that they might have.
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However, SpaceX is doing things differently, as the company launched its own Investor Relations website where these questions are being fielded. Just like the Tesla questions, they seem to be less focused on the operational tasks and overall progress of the company, and more novelty.
Here are the top five:
- Has the team thought about what possibilities there are with your mascot Asteroid? Whether it’s starting additional foundations for kids in its name, helping kids learn about space, etc. Kids are our future, and Asteroid would be a fun and easy way to help.
- Baby Asteroid is already making a difference through charity around the world. Could SpaceX take it even further with programs that inspire kids to explore space?
- SpaceX has some legendary vehicle names. Would you ever allow the public to name a Starship, even knowing there is a 99% chance it becomes Shipy McShipface?
- When can we expect to see more footage of the Human Landing System?
- Will Asteroid (your mascot) go to Mars?
SpaceX will report its earnings today, August 4, at 4:30 P.M. EDT.
SpaceX reports beat in first earnings while minimizing losses
Elon Musk sends second warning to SpaceX shorts ahead of first earnings
