Since 2015, China has successfully launched five experimental BeiDou global navigation system (BDS-3) satellites for expanding the regional system to global coverage. An initial performance assessment and characterization analysis of the BDS-3 is presented. Twenty days of tracking data have been collected from eleven monitoring stations. The tracking characteristics and measurement quality are analyzed and compared with the regional BDS (BDS-2) in terms of observed carrier-to-noise density ratio, pseudo-range multipath, and noise. The preliminary results suggest that the measurement quality of BDS-3 outperforms the BDS-2 for the same type of satellites. In addition, the analysis of multipath combinations reveals that the problem of satellite-induced code biases found in BDS-2 seems to have been solved for BDS-3. Precise orbit and clock determination are carried out and evaluated. The orbit overlap comparison show a precision of 2–6 dm in 3D root mean square (RMS) and 6–14 cm in the radial component for experimental BDS-3 satellites. External validations with satellite laser ranging (SLR) show residual RMS on the level of 1–3 dm. Finally, the performance of the new-generation onboard atomic clocks is evaluated and results confirm an increased stability compared to BDS-2 satellite clocks.