SpaceX and Tesla Joint Venture to Expand Semiconductor Supply
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy TSLA?
Source: NASDAQ.COM
- Joint Venture Launch: The SpaceX and Tesla joint venture, Terafab, is set to invest $20 billion to establish a leading global semiconductor production capability, although analysts believe this funding is insufficient to achieve Musk's envisioned scale.
- Technological Integration Advantage: Terafab aims to cover all aspects of semiconductor production, including design, lithography, fabrication, packaging, and testing, with plans to produce 2nm chips at scale from the outset, showcasing Musk's ambition in technological integration.
- Market Competition Dynamics: While Terafab aims to meet the demands of Tesla and SpaceX, Musk does not intend to compete directly with TSMC, instead seeking to address the insufficient expansion of existing manufacturers through self-built facilities.
- Long-Term Outlook: TSMC expects revenue growth exceeding 30% in 2026 and maintains a long-term growth target of 25%, reflecting confidence in market demand, despite Musk's plans likely not posing an immediate threat.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy TSLA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 373.720
Low
25.28
Averages
401.93
High
600.00
Current: 373.720
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
TESLA Q1 FREE CASH FLOW REVISED TO USD 1,444 MILLION
Tesla's Q1 Free Cash Flow: Tesla reported a free cash flow of USD 1,444 million for the first quarter, indicating strong financial performance.
Correction of Amount: The reported cash flow figure was corrected to reflect the accurate amount, emphasizing the importance of precise financial reporting.
See More
Norway Wealth Fund's Deputy CEO: Engaging with SpaceX and Evaluating Potential Investment Opportunities
Norway Wealth Fund Deputy CEO's Statement: The Deputy CEO of Norway's Wealth Fund has indicated that they are currently in dialogue with SpaceX regarding potential investments.
Assessment of Investment Opportunities: The fund is assessing whether investing in the company could be of interest, reflecting a strategic approach to diversifying its portfolio.
See More
TESLA TO ACQUIRE AI HARDWARE FIRM FOR AS MUCH AS $2 BILLION IN COMMON STOCK AND EQUITY AWARDS, ACCORDING TO SEC FILING
- Tesla's Acquisition: Tesla has agreed to purchase an AI hardware company for up to $2 billion.
- Stock and Equity Awards: The deal will be financed through Tesla common stock and equity awards, as indicated in a SEC filing.
See More
Tesla's In-Car AI Assistant Grok: Usage and Risks
- Usage of AI Assistant Grok: Tesla owner Mike Nelson has been using xAI's Grok chatbot in New York City, finding it entertaining and informative during drives, but he also notes it increases distraction risks, particularly in complex urban settings.
- Risks of FSD System: Tesla's Full Self-Driving (FSD) system, priced at $99 per month, offers partial automation but requires driver attention; Nelson highlights that using Grok may exacerbate these risks while driving.
- Safety Investigations: The National Highway Traffic Safety Administration has initiated multiple investigations into Tesla's FSD system due to several accidents, including a fatal crash in 2023, underscoring the serious implications of distracted driving.
- Technical Limitations and Controversies: Grok sometimes provides incorrect answers to user queries, and its NSFW mode has raised concerns among parents; Tesla has not commented on these issues, reflecting the tension between technological innovation and user safety.
See More
Tesla Owner's Experience with AI Assistant Grok Raises Concerns
- Attractive AI Assistant: Tesla owner Mike Nelson finds Grok nearly irresistible during drives, highlighting the potential of AI assistants to enhance driving experiences, despite his background representing Tesla owners in over 10 lawsuits, raising concerns about safety.
- Driving Safety Risks: While using Tesla's Full Self-Driving system, Nelson notes that Grok may exacerbate distraction risks, particularly in chaotic environments like New York City, potentially leading to decreased attention to surroundings and increased accident risks.
- Functionality Limitations: Although Grok offers various features, Nelson experiences inconsistencies in its responses regarding seat and climate control adjustments, indicating limitations in the AI assistant's practical application that could undermine user trust.
- Content Regulation Issues: Grok's NSFW mode has raised concerns among parents, especially regarding minors accessing inappropriate content, with Tesla yet to respond, highlighting the tension between technological advancement and user safety.
See More
Intel's Strong Turnaround: Q1 Results Exceed Expectations
- Strong Performance: Intel's Q1 report revealed sales of $13.57 billion, a 7% year-over-year increase that surpassed market expectations of $12.33 billion, indicating a robust recovery in the AI-driven semiconductor market.
- Return to Profitability: Intel posted a GAAP net income of $760 million for Q1, with adjusted EPS at $0.29, significantly exceeding expectations of $0.01, showcasing a remarkable improvement in profitability.
- Optimistic Market Outlook: The company forecasts Q2 sales between $13.8 billion and $14.8 billion, well above Wall Street's expectation of $12.95 billion, reflecting strong confidence in future growth.
- Successful Strategic Transformation: With AI workloads shifting towards CPUs, Intel has reestablished its competitive position, and the CEO emphasized that CPUs are the “indispensable foundation of the AI era,” laying a solid foundation for future growth.
See More
TESLA Q1 FREE CASH FLOW REVISED TO USD 1,444 MILLION
Tesla's Q1 Free Cash Flow: Tesla reported a free cash flow of USD 1,444 million for the first quarter, indicating strong financial performance.
Correction of Amount: The reported cash flow figure was corrected to reflect the accurate amount, emphasizing the importance of precise financial reporting.
See More
Norway Wealth Fund's Deputy CEO: Engaging with SpaceX and Evaluating Potential Investment Opportunities
Norway Wealth Fund Deputy CEO's Statement: The Deputy CEO of Norway's Wealth Fund has indicated that they are currently in dialogue with SpaceX regarding potential investments.
Assessment of Investment Opportunities: The fund is assessing whether investing in the company could be of interest, reflecting a strategic approach to diversifying its portfolio.
See More
TESLA TO ACQUIRE AI HARDWARE FIRM FOR AS MUCH AS $2 BILLION IN COMMON STOCK AND EQUITY AWARDS, ACCORDING TO SEC FILING
- Tesla's Acquisition: Tesla has agreed to purchase an AI hardware company for up to $2 billion.
- Stock and Equity Awards: The deal will be financed through Tesla common stock and equity awards, as indicated in a SEC filing.
See More
Tesla's In-Car AI Assistant Grok: Usage and Risks
- Usage of AI Assistant Grok: Tesla owner Mike Nelson has been using xAI's Grok chatbot in New York City, finding it entertaining and informative during drives, but he also notes it increases distraction risks, particularly in complex urban settings.
- Risks of FSD System: Tesla's Full Self-Driving (FSD) system, priced at $99 per month, offers partial automation but requires driver attention; Nelson highlights that using Grok may exacerbate these risks while driving.
- Safety Investigations: The National Highway Traffic Safety Administration has initiated multiple investigations into Tesla's FSD system due to several accidents, including a fatal crash in 2023, underscoring the serious implications of distracted driving.
- Technical Limitations and Controversies: Grok sometimes provides incorrect answers to user queries, and its NSFW mode has raised concerns among parents; Tesla has not commented on these issues, reflecting the tension between technological innovation and user safety.
See More
Tesla Owner's Experience with AI Assistant Grok Raises Concerns
- Attractive AI Assistant: Tesla owner Mike Nelson finds Grok nearly irresistible during drives, highlighting the potential of AI assistants to enhance driving experiences, despite his background representing Tesla owners in over 10 lawsuits, raising concerns about safety.
- Driving Safety Risks: While using Tesla's Full Self-Driving system, Nelson notes that Grok may exacerbate distraction risks, particularly in chaotic environments like New York City, potentially leading to decreased attention to surroundings and increased accident risks.
- Functionality Limitations: Although Grok offers various features, Nelson experiences inconsistencies in its responses regarding seat and climate control adjustments, indicating limitations in the AI assistant's practical application that could undermine user trust.
- Content Regulation Issues: Grok's NSFW mode has raised concerns among parents, especially regarding minors accessing inappropriate content, with Tesla yet to respond, highlighting the tension between technological advancement and user safety.
See More
Intel's Strong Turnaround: Q1 Results Exceed Expectations
- Strong Performance: Intel's Q1 report revealed sales of $13.57 billion, a 7% year-over-year increase that surpassed market expectations of $12.33 billion, indicating a robust recovery in the AI-driven semiconductor market.
- Return to Profitability: Intel posted a GAAP net income of $760 million for Q1, with adjusted EPS at $0.29, significantly exceeding expectations of $0.01, showcasing a remarkable improvement in profitability.
- Optimistic Market Outlook: The company forecasts Q2 sales between $13.8 billion and $14.8 billion, well above Wall Street's expectation of $12.95 billion, reflecting strong confidence in future growth.
- Successful Strategic Transformation: With AI workloads shifting towards CPUs, Intel has reestablished its competitive position, and the CEO emphasized that CPUs are the “indispensable foundation of the AI era,” laying a solid foundation for future growth.
See More
