Tesla Stock Jumps Nearly 4% as $16.8 Billion Terafab Breaks Ground

Tesla's stock saw a nearly 4% increase after the company, in partnership with SpaceX, announced the groundbreaking and initial funding for Terafab, a massive $16.8 billion semiconductor manufacturing campus in Texas. This project aims to bring chip production in-house for Tesla's Optimus robots, self-driving vehicles, and SpaceX's orbital data centers. While the move could significantly strengthen Tesla's AI capabilities and reduce supplier dependency, it also presents substantial risks given the enormous capital and execution challenges inherent in semiconductor fabrication.