Tesla, SpaceX Plan $25B Terafab Fab as SpaceX Eyes $75B IPO
Tesla and SpaceX plan a Terafab semiconductor fab, costing up to $25B and targeting 1M wafer starts monthly to produce 100–200B AI chips annually. Tesla holds a SpaceX stake via XAI acquisition and may gain as SpaceX files a confidential IPO this week targeting $75B and a $1.5T valuation.
1. Terafab Project Details
Tesla and SpaceX will build a joint fab in Austin under Terafab, with capex up to $25B. The facility aims to achieve roughly 1M wafer starts per month, equating to nearly 70% of global foundry output, to yield 100–200B AI chips annually.
2. Strategic Rationale and Capacity Goals
Current AI compute output stands at about 20GW per year, covering only 2% of Musk’s ecosystem demand. Terafab seeks to close this gap by securing in-house chip production for FSD, Cybercab and Optimus applications.
3. SpaceX IPO Plans and Tesla Stake
SpaceX intends to file a confidential IPO this week, targeting $75B in proceeds and a $1.5T valuation. Tesla holds a stake in SpaceX through its XAI investment, positioning it to gain from any valuation uplift.