Waymo has 200 vehicles in Austin. At the same time, Tesla’s free cash flow has retreated as the company has teamed up with SpaceX (NASDAQ:SPCX) to build Terafab, a large semiconductor project in Texas.
Catalysts include Cybercab production has just started, Semi ramps this year, and CFO Vaibhav Taneja’s guidance to “over $25 billion of CapEx” in 2026 for six factories, AI infrastructure, and Terafab. Elon Musk described unsupervised FSD reaching customer cars “probably in the fourth quarter” and Optimus as “the biggest product ever”. Robotaxi is live in Austin, Dallas, and Houston with zero reported incidents. Polymarket traders assign an 81.5% probability to Tesla beating its next earnings re
Ex-Blue Origin workers say theirs are worthless.Exclusive: Elon Musk plans to pitch SpaceX's Terafab chip moonshot to employees at Europe's biggest tech companyThis tech exec sued Tesla over its Full Self-Driving promises — and wonExclusive: Stellantis CEO tells employees to channel Silicon Valley office culture as it prepares for 5-day RTOExclusive: The chip industry's most important company is cutting managers.
Business Insider has reported that SpaceX plans to build out Terafab in Grimes County, Texas, but this is unconfirmed. ... Musk confirmed recently that it would not be on Giga Texas property, as it is simply too large.
As a reminder, SpaceXAI has already announced that it will spend as much as $119 billion on building its own TeraFab because TSMC’s and others’ manufacturing capacity isn’t anywhere near what SpaceXAI’s and Tesla’s future needs are.
Apple is considering manufacturing some of its M-series processors on Intel’s 18A-P node, while Google might tap the chip-maker EMIB (Embedded Multi-die Interconnect Bridge) advanced packaging for TPU v8e. Notably, Intel’s flagship Panther Lake mobile processor and the Clearwater Forest server CPU are both built on its 18A process, while Tesla has tapped Intel’s 14A node to manufacture chips for its Terafab data center complex in Austin.
While Tesla announced its Terafab semiconductor manufacturing initiative in March 2026, the company remains dependent on external foundries for advanced chip production in the near term.
Downtown Austin’s Seaholm Power Plant, which was quietly occupied by several Elon Musk-affiliated companies earlier this year, is getting a $5.2 million facelift. The planned renovations have been put in place by Wit Tech, a company with links to SpaceX, the firm that is pushing the construction of the Terafab semiconductor manufacturing plant in Grimes County.
“TSMC also announced an additional $100B investment at its Arizona fab cluster that entails 4+ fabs (front-end wafer and advanced packaging). This brings its long- term investment goal in Arizona to $265B. We believe this incremental commitment could be in response to competitive risks represented by new leading-edge foundry investments by Terafab (Intel a technology partner) and Samsung Foundry,” Sankar said.
Business Insider has reported that SpaceX plans to build out Terafab in Grimes County, Texas, but this is unconfirmed. ... Musk confirmed recently that it would not be on Giga Texas property, as it is simply too large.
SpaceX's orbital data center buildout ... probably haven't fully priced in. SpaceX's Terafab facility may eventually replace Nvidia's chips with proprietary silicon, capping the long-term upside of the space data center ...
My first question is really about the foundry competition. I understand that there's no shortcut for a newcomer like TeraFab, but · how about like Samsung Foundry, right? They got a huge profit from memory business. Intel got a US policy support. So I'm not · sure how TSMC is going to address those competition because apparently several US companies are engaging with those industry
Terafab will ultimately be as large as 10 Tesla Gigafactories and output 1TW of solar and compute a year, twice the total current US electricity consumption
Space SpaceX files for $55 billion semiconductor fab in rural Texas for Musk's Terafab · CPUs Intel invests $5.7 billion in Ireland fab · Latest in Tech Industry · Data Centers Elon Musk spent $1 billion on an energy company to power xAI ·
Musk estimates the technology could be cost-competitive in two to three years. In March, Musk unveiled Terafab, a massive semiconductor initiative designed to give Tesla, SpaceX and xAI direct control over the chips powering their A.I.
The two companies already share extensive commercial ties, including joint ownership of the Terafab chip facility, and SpaceX bought $697 million of Tesla's Megapack battery systems in 2024 and 2025.
Ex-Blue Origin workers say theirs are worthless.Exclusive: Elon Musk plans to pitch SpaceX's Terafab chip moonshot to employees at Europe's biggest tech companyThis tech exec sued Tesla over its Full Self-Driving promises — and wonExclusive: Stellantis CEO tells employees to channel Silicon Valley office culture as it prepares for 5-day RTOExclusive: The chip industry's most important company is cutting managers.