Elon Musk expressed confidence that his companies would likely “figure out how to make chips better than anyone” due to their proficiency in developing specialised equipment. Musk addressed a group of customers and investors at Tesla Inc.’s giga factory in Austin, Texas, stating that although he presently has “no idea how to make microchips, we’ll figure it out.” During his appearance at the X Takeover event via livestream on Saturday, he remarked that in his tours of rival facilities, he observed a lack of customised equipment. He emphasised that his companies possess significant experience in manufacturing such equipment, which allows them to enhance the manufacturing process.
“I think it is accurate to say it’s one of the hardest things to do in the world,” Musk said. “I don’t want to be complacent or entitled or anything, but, I think probably we’ll figure out how to make chips better than anyone. Honestly. I don’t know how long it’s going to take us to do that. It might take us quite a few years.” Musk is set to establish a Terrafab factory in Grimes, Texas, through a joint venture involving his companies Tesla and SpaceX, in collaboration with Intel Corp., with an initial investment exceeding $15 billion. The project, anticipated to generate 3,000 jobs, will be awarded a Texas Enterprise Fund grant amounting to $30 million. The 100-million-square-foot facility will be constructed in phases on a footprint of roughly 3,000 acres; however, SpaceX currently controls more than 13,000 acres.
SpaceX, which went public in June, has recently surpassed its initial public offering share price of $135, resulting in Musk becoming the world’s first trillionaire. The company is approaching an agreement with investment firm Grain Management LLC to obtain the spectrum necessary to transform itself into a mobile carrier capable of competing with T-Mobile US, Verizon Communications, and AT&T. Tesla reported sales that exceeded expectations for the third quarter, delivering 486,532 vehicles globally during the period, as stated in a release on Friday. That figure stands in contrast to the average expectation of 463,761 as per analyst estimates.
The results are promising for Tesla after a phase of decreasing auto sales and a stagnant stock price. The company is set to allocate over $25 billion this year toward expanding its factory operations and establishing the robotaxi business, having secured $30 billion in new loans and credit lines to facilitate this growth. X Takeover also featured appearances from the musician Nicki Minaj and Musk’s mother, Maye.
