Elon Musk outlined a proposal for a massive wafer fabrication network requiring $5–$13 trillion in capital, aiming to build hundreds of fabs to deliver up to one terawatt of annual AI compute capacity. The initiative spans Tesla, xAI and SpaceX and seeks to mitigate supply constraints for AI, robotics and space systems by vertically integrating chip production.

A leading analyst upgraded Tesla to a Hold rating with a $383 price target, citing potential scaling of Cybercab ride-hailing services and Optimus humanoid robotics operations over the next quarters. The revision underscores growing confidence in Tesla’s longer-term robotics and autonomous mobility business beyond electric vehicles.

Investors are closely watching the upcoming launch of SpaceX’s third-generation Starship, which must reliably reuse its boosters to lower launch costs for orbiting AI data centers. The success of Starship’s next flight is seen as a key unlock for deploying solar-powered, space-based compute facilities linked to Tesla’s Terafab project and future AI workloads.