Tesla has become a moonshot bet on several projects that currently do not contribute materially to their numbers.
Even by Tesla’s standards, the Terafab project is perhaps the epitome of Musk’s eternal desire to swing for the fences.
Terafab is a planned ~$25 billion semiconductor fab that Elon Musk announced last month as a joint venture between Tesla, SpaceX, and xAI.
It will target 2nm process technology and an initial capacity of 100,000 wafer starts per month.
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Tesla (TSLA) had their earnings yesterday, but given the company trades at ~226x NTM EV/EBIT multiple, it is a bit of a waste of time to spend time dissecting their existing business. Ultimately, Tesla has become a moonshot
