Tesla Faces 25% Valuation Hit and Plans 1TW Terafab Chip Factories

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Investor Gary Black warns a Tesla-SpaceX merger could cut Tesla’s value by 20-25% due to applying its 100x EV/EBITDA multiple to SpaceX’s 200x valuation, creating a conglomerate discount. Elon Musk also unveiled two Texas Terafab chip plants aiming for one terawatt of annual computing capacity.

1. Merger Dilution Warning

Investor Gary Black warns that merging Tesla with SpaceX could dilute shareholder value by 20-25%, as the combined entity may trade at a lower conglomerate multiple.

2. Valuation Multiple Analysis

Black highlights that applying Tesla’s 100x EV/EBITDA to SpaceX’s 200x valuation would trigger a conglomerate discount, undermining SpaceX’s higher growth multiple.

3. Terafab Project Overview

Elon Musk announced the Terafab initiative in Austin, Texas, comprising two advanced chip factories—one for vehicle and humanoid robot chips and another for AI data center processors for space.

4. Production Capacity Goal

The Terafab facilities target one terawatt of annual computing capacity, roughly double current U.S. chip output, to meet both Tesla’s and SpaceX’s future needs.

Sources

FDB