Musk Says Tesla Needs to Build Its Own Factory to Make Chips (1)

Elon Musk said Tesla Inc. needs to build and operate what he is calling a “TeraFab” to manufacture semiconductors, a massive undertaking that will cost billions of dollars and mark another expansion beyond what had been the company’s core electric vehicle business.

“In order to remove the probable constraint in three or four years, we are going to have to build a Tesla TeraFab,” Musk said Wednesday on the carmaker’s earnings call. “A very big fab that includes logic, memory and packaging, domestically.”

Tesla, the world’s most valuable automaker, has bet its future on artificial intelligence, autonomous driving and robotics, ...