Tesla

• Elon Musk launched Terafab, a $20 billion-plus semiconductor fab in Austin, Texas, jointly developed by Tesla, SpaceX, and xAI to produce custom chips for EVs, Optimus robots, and AI computing. • The facility targets terawatt-scale power output, addressing global chip shortages constraining Musk's AI and robotics timelines amid TSMC capacity limits. • This vertical integration bolsters U.S. domestic manufacturing self-sufficiency amid geopolitical tensions and accelerates competition in AI hardware where compute is the key bottleneck.

• Tesla officially launched Terafab, a $20 billion AI chip manufacturing facility in Austin, Texas, marking a major expansion in US AI hardware production. • The factory aims to produce advanced AI chips for Tesla's autonomous driving and robotics initiatives, reducing reliance on foreign suppliers. • This development strengthens US domestic semiconductor capabilities amid global chip shortages and boosts Texas as a tech hub.

• The US government approved a $4.3 billion deal between Tesla and LG Energy Solution for battery cells produced at a Michigan plant. • Cells will power Tesla's energy storage products like Megapack, bolstering domestic supply chains. • Approval highlights federal support for US EV and renewable energy manufacturing amid trade tensions.

• Elon Musk stated Tesla and SpaceX AI will continue large Nvidia chip purchases even as Tesla advances its AI5 chip, optimized for edge compute in Optimus and Robotaxi. • Tesla's Terafab AI chip manufacturing facility is set to launch within seven days from March 14, potentially by March 21. • Musk praised Nvidia CEO Jensen Huang, noting AI5's efficiency in half-reticle format could halve fab needs, with AI6 potentially matching dual AI5.

Tesla held steady near $395 on March 13, 2026, showing stability amid Nasdaq's 100-point drop to 22,211 driven by geopolitical tensions. The performance reflects relative EV sector resilience, alongside NIO's 4% gain on improving global sentiment. This contrasts with broader profit-taking, positioning Tesla as a volatility outlier. Watch for EV policy shifts in upcoming sessions.