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. The plant is designed for an initial output of 100,000 wafer starts per month, with plans to reach 1 million. The initial cost estimate of $20-25 billion was not yet in Tesla's 2026 capex plan.

• Launched March 21, 2026 at Seaholm Power Plant, Austin
• Joint venture between Tesla, SpaceX and xAI
• Design target 100,000 wafer starts per month initially, 1 million later
• Full cost estimated at $20-25 billion, not yet in 2026 capex plan