RBC Sees Tesla-SpaceX Merger Creating Over $1 Trillion Chip Savings Through Terafab by 2050

According to RBC Capital, a potential Tesla-SpaceX merger could generate over $1 trillion in long-term chip cost savings by 2050 through Terafab, Musk's vertically integrated semiconductor manufacturing complex. The brokerage estimates this would create an "orbit-to-ground" platform spanning connectivity, autonomous vehicles and robotics. Musk confirmed on Tesla's earnings call that the two companies already have "more and more overlap" including Terafab, Starlink and Digital Optimus.

Tesla stated that Terafab is "necessary" to scale Optimus as AI chip demand rises, with the company advancing its AI5 and AI6 chip development. Equipment orders for an Austin development fab designed to combine mask production, logic, memory, packaging and testing have already been placed.