Terafab
Chip fab joint venture with SpaceX. The initial investment is $16.8 billion in Grimes County, Texas, and Intel has joined.
The numbers
What it is
A semiconductor fab project to make AI chips for Tesla (Optimus and Cybercab), and for SpaceX's data centers. It was launched in March 2026. The site moved to Grimes County, Texas, outside Houston, in August.
Why it matters to the stock. Chip supply is a main constraint on the AI and robotaxi roadmap. The fab is also a large related-party capital project shared with Musk's other companies.
News
SpaceX and Tesla announce $16.8 billion first phase of Terafab chip plant in Texas
Tesla and SpaceX announced the first phase of Terafab, a semiconductor plant in Grimes County, Texas, with $16.8 billion of initial investment.
Tesla raises 2026 capex plan to $25B from more than $20B
On the Q1 2026 call Tesla raised its 2026 capital expenditure guidance to $25 billion, up from the more than $20 billion it had guided in January.
Intel joins Tesla, SpaceX and xAI on the Terafab chip project
Intel said on X on April 7, 2026 that it would join the Terafab project with SpaceX, xAI and Tesla to help refactor silicon fab technology.
Musk launches Terafab chip fab project with SpaceX and xAI in Austin
Musk launched Terafab on March 21, 2026 at the Seaholm Power Plant in Austin, describing it as a joint venture of Tesla, SpaceX and xAI.