Tesla to Launch In-House Semiconductor Project
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 14 2026
0mins
Should l Buy TSLA?
Source: seekingalpha
- Project Launch: Tesla CEO Elon Musk announced that the in-house semiconductor project named Terafab will launch in a week, potentially costing billions and aimed at alleviating supply chain constraints while addressing geopolitical risks.
- Supply Chain Challenges: Musk indicated that existing chip suppliers like Samsung, Micron, and TSMC cannot meet Tesla's needs, necessitating self-manufacturing to secure production capabilities over the next three to four years.
- Strategic Importance: The project will establish a large semiconductor fabrication facility encompassing logic, memory, and packaging, ensuring Tesla's production security against geopolitical risks and enhancing the company's competitive position in the market.
- Future Outlook: Musk emphasized the need for proactive measures in light of escalating global geopolitical risks, positioning Tesla to maintain a competitive edge and avoid potential supply chain disruptions in the future.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 381.260
Low
25.28
Averages
401.93
High
600.00
Current: 381.260
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.
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- Future Outlook: Analysts project Tesla's deliveries to reach 1.69 million in 2026, 1.88 million in 2027, and 2.13 million in 2028, with expectations of surpassing 3 million vehicles by 2030, which could attract investor interest given the long-term growth outlook.
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See More
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- Weak Delivery Expectations: Wall Street anticipates Tesla will report approximately 365,645 global deliveries in Q1, while independent researcher Troy Teslike projects around 375,000 vehicles, both figures falling short of last year's 336,681 deliveries, highlighting diminishing market confidence in Tesla.
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- Bearish Market Sentiment: According to Stocktwits, retail sentiment for Tesla has remained in the 'bearish' territory over the past week, with investors expressing low expectations for Q1 deliveries, contributing to a 15% decline in TSLA stock year-to-date.
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- Market Dynamics: By the end of 2026, EVs are expected to make up 15% of off-lease used vehicles, up from just 7.7% in Q1 2023, indicating rapid changes in the EV market and its potential impact on Ford Credit.
- Industry Loss Estimates: Experts predict that the resale value of off-lease EVs will be around $10,000 less than projected, leading to an estimated industry-wide loss of about $8 billion in 2028, posing challenges for Ford and its competitors Tesla and General Motors.
See More
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- EV Residual Value Risk: With nearly 800,000 EVs expected to flood the market by 2028, industry experts predict these vehicles will resell for about $10,000 less than projected, potentially leading to an industry-wide loss of approximately $8 billion, posing significant financial pressure on Ford Credit.
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See More
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- Fragile Job Market: The March jobs report is expected to show an addition of 65,000 jobs, which is seen as a breakeven number to maintain economic balance, yet it highlights the fragility of the labor market that could affect consumer confidence and spending.
- Tesla's Disappointing Deliveries: Tesla's first-quarter delivery numbers fell short of expectations, underscoring challenges in the electric vehicle market, especially as rising gas prices may delay consumer demand for EVs, impacting the company's future revenue growth.
- OpenAI Acquires Media Company: OpenAI has acquired the popular tech news show TBPN, although the terms of the deal were not disclosed, this move is expected to enhance its influence in the tech media space and potentially support its future market strategy.
See More
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- Massive Market Potential: The global robotaxi market is projected to reach $10 trillion, and Tesla, with its capital and infrastructure advantages, is poised to dominate this market, driving future growth for the company.
- Key AI Investments: Tesla's recent $2 billion investment in Elon Musk's AI startup xAI indicates a strategic focus on artificial intelligence, and if it achieves full autonomy, it could significantly enhance its competitive edge in the market.
- Data Generation Advantage: Tesla's ability to produce its own vehicles at scale allows it to generate real-world driving data faster, which is crucial for collecting large-scale data and may provide it with unparalleled advantages in the robotaxi sector.
- High Valuation with Potential: Despite Tesla's stock trading at 14.2 times sales, analysts and investors remain optimistic about its prospects, potentially underestimating the company's true potential, making it an unlikely
See More
