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Tesla and SpaceX Committed $16.8 Billion to One Chip Plant. Tesla's Entire Annual Profit Is $3.8 Billion.
The Motley Fool·
Tesla and SpaceX announced an $16.8 billion commitment to build Terafab, a semiconductor manufacturing plant in Texas. This first phase investment exceeds Tesla's annual profit of $3.8 billion by over four times. The plant will produce chips for Tesla's Optimus robots and Cybercab, as well as SpaceX's space-based data centers. While Tesla has sufficient cash reserves to fund its share, the earnings from these future products needed to justify the investment have not yet materialized.
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