Over the past several months we've grown accustomed to seeing video reports from the Tesla Gigafactory 3 construction zone in Shanghai, China without much insight on what's going on inside. By the way of the latest Q2 financial report, Tesla revealed images with several shots of machinery installed in part of the facility.

As you can see, there is a surprisingly high number of robot nests already installed, including a big stamping machine.

Tesla intends to start production of "a simplified, more cost-effective version of" Model 3 in China within 5 months, using "the second generation of the Model 3 production process". At some point in the future, production will be 150,000 Model 3 annually.

"Gigafactory Shanghai continues to take shape, and in Q2 we started to move machinery into the facility for the first phase of production there. This will be a simplified, more cost-effective version of our Model 3 line with capacity of 150,000 units per year – the second generation of the Model 3 production process. Just like in the US, the Model 3 base price of RMB 328,000 is consistent with its gas-powered competitors, even before gas savings and incentives. Given Chinese customers bought well over a half million mid-sizedpremium sedans last year, this market poses a strong long-term opportunity for Tesla. We are looking forward to starting production in China by the end of this year. Depending on the timing of the Gigafactory Shanghai ramp, we continue to target production of over 500,000 vehicles globally in the 12-month period ending June 30, 2020. "