Quick Read – Musk’s Terafab targets 1 TW of annual chip output, which is double current U.S. consumption, with Tesla and Intel anchoring SpaceX’s $122 billion facility. – NVIDIA drives AI chip demand at a modest 23x forward earnings while TSMC faces a new sovereignty narrative…
om Terafab’s domestic production ambitions. – ASML surged 69% year-to-date to $1,811 as the sole High NA EUV supplier required for any fab operating at Terafab’s scale. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and ASML didn’t make the cut. Grab the names FREE today
Tesla (NASDAQ:TSLA) CEO Elon Musk is once again pitching a project that sounds engineered to break Excel spreadsheets. According to an X post from Sawyer Merritt circulating this week, Musk described Terafab as a roughly 100 million square foot facility, about 10 times larger than Tesla’s Giga Texas factory, with a long-term output target of one terawatt (1 TW) of compute hardware per year. The framing matters here.
Current annual U.S. chip consumption sits near 0.5 TW, so Musk’s vision is for a single plant whose output could rival, and potentially exceed, what the entire country uses today. Musk’s own line, per the post: “Fundamentally, Terafab is about scale.” The plan, if executed, could reshape how investors think about Tesla, Intel (NASDAQ:INTC), and the broader semiconductor supply chain. Inside the Terafab Plan and Tesla’s Role According to SpaceX’s S-1 filing, the collaboration with Tesla on Terafab was announced in March, with Intel joining in April.