On November 7, 2025, Tesla convened its annual shareholder meeting in Austin, Texas. At the gathering, CEO Elon Musk disclosed that, in order to keep pace with the requirements of its autonomous driving and humanoid robot ventures, Tesla is set to construct a colossal chip factory, dubbed 'Terafab.' The factory aims to churn out a staggering 1 million wafers each month. Musk pointed out that the existing production capacities of TSMC and Samsung fall short of Tesla's burgeoning needs, and that constructing its own facility is the sole means to attain the targeted chip output.

He further divulged that Tesla's in-house-developed AI5 chip boasts a mere one-third of the power consumption of NVIDIA's Blackwell chip, comes at a cost of less than 10% of the latter, and has undergone deep optimization for Tesla's AI software ecosystem. Moreover, Musk hinted at the possibility of collaborating with Intel, though no formal agreement has been inked as of yet.