Tesla’s $1.3tn market value already assumes a future driven more by artificial intelligence than by electric cars. Delivering on that expectation would require far greater control over the hardware that powers autonomy, robotics and AI training.
Elon Musk has said the company therefore needs to build and operate a so-called TeraFab to manufacture its own chips. Can Tesla actually do this?
That idea should be considered separately from Musk’s more extravagant ambitions. Compared with projects such as Mars colonisation or neural implants, building a chip fabrication plant is grounded in existing industrial practice.
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