Tesla (TESLA) and SpaceX Plan to Build a New Chip Factory in Texas

Tesla, Inc. (NASDAQ:TSLA) is one of the

Goldman Sachs AI Stocks: Top 12 Stocks to Buy. On March 23, 2026, Reuters reported that CEO Elon Musk said the day before that Tesla, Inc. (NASDAQ:TSLA) and SpaceX aim to establish two advanced chip factories in Austin, Texas, as part of the "Terafab" project. The complex will include two fabs, each creating a single chip design, one for the corporation's automobiles and Optimus humanoid robots, and the other for AI data centers in space. Musk said that the businesses must develop the facility to fulfill future chip demand, estimating that the current world supply will only meet approximately 3% of their needs.

The Terafab venture is a collaboration between SpaceX, Tesla, Inc. (NASDAQ:TSLA), and xAI, with no planned completion date revealed. Musk stated that the facility could produce one terawatt of computing capacity per year, compared to around half a terawatt now generated in the United States. He acknowledged the company's reliance on suppliers such as Samsung, TSMC, and Micron, while expecting that internal demand will soon exceed global chip supply.

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Tesla, Inc. (NASDAQ:TSLA) is a developer, manufacturer, designer, lessor, and seller of electric vehicles and energy generation and storage systems. The company operates across China, the United States, and globally. It operates through the Automotive and Energy Generation and Storage segments.

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