Elon Musk targets TeraFab for massive Tesla chip output

Elon Musk wants Tesla to build insane volumes of chips itself, betting TeraFab beats supply chokeholds and politics.

TeraFab is not a joke anymore

• Elon Musk doubled down during an earnings call.
• Tesla eyes full-scale chip manufacturing.
• Output targets hit 100 to 200 billion units yearly.
• The goal is total supply control.

Why Tesla wants its own fabs

• External supply keeps tightening.
• Geopolitics keep messing with planning.
• Partners' cap volumes.
• Musk wants zero dependency.

What TeraFab would actually do

• One site handles logic chips.
• Memory production sits inside the same network.
• Packaging stays in-house.
• Scale removes future bottlenecks.

Custom silicon ambitions

• Tesla already runs AI5 internally.
• Roadmap stretches through AI9.
• Cost-efficient computing stays the priority.
• Volume matters more than elegance.

Musk knows this is brutal

• He openly admits fabs are extremely hard.
• Difficulty is not a deterrent.
• Tesla leans into hard problems.
• Skipping the attempt feels riskier.

Current partners are causing friction

• TSMC limits access and timing.
• Micron sits inside the same supply web.
• Samsung also factors into constraints.
• Capacity fights are constant.

The alternate path still exists

• Tesla could bankroll a partner fab.
• Early access trades cash for priority.
• TSMC already allows customer investment.
• Overhead drops without exclusivity.

Why does this keep coming up

• Dojo 3 is back in play.
• Musk keeps circling Fab ownership.
• Chips sit at the core of Tesla’s future.
• Cars and AI both demand absurd scale.