Overview
- After Saturday’s Austin unveiling, Musk pitched a joint Tesla–SpaceX–xAI “Terafab” that would fold chip design, fabrication, memory, packaging, and testing into one site.
- The plan targets 2‑nanometer production, 100–200 billion chips a year, and 1 terawatt of compute with 80% aimed at space uses.
- Tesla put the initial price at $20–25 billion, said that figure is not in its 2026 spending plan, and offered no construction timeline.
- Company targets call for small‑batch AI5 chips in late 2026 and volume in 2027, though prior delays leave schedules uncertain.
- Reaction split, with Wedbush’s Daniel Ives touting a potential Tesla–SpaceX merger in 2027 as others warn of far higher costs, including a $35–45 billion estimate from Morgan Stanley and a “many multiples” caution from Barclays’ Dan Levy.