Tesla (TSLA) stock has been rising following chip maker Intel’s (INTC) announcement that it would join Elon Musk’s Terafab AI chip project alongside SpaceX, xAI, and Tesla. Intel also confirmed hosting the billionaire at its campus over the weekend.
Claim 30% Off TipRanks
New trading tool for TSLA bearsIn a post on X, Intel highlighted its ability to “design, fabricate, and package ultra-high-performance chips at scale,” which will accelerate Terafab’s goal. The project aims to produce 1 terawatt per year of compute to advance AI and robotics.
Tesla Stock Price Movement
Tesla shares initially showed little reaction amid pressure from missed Q1 2026 delivery estimates. Analysts remain divided, with JPMorgan’s Ryan Brinkman recently issuing a “Sell” rating and 58% downside potential. Year-to-date, TSLA shares have lost 22.9%.
The stock finally climbed on April 7, buoyed by broader market gains. Last night, the U.S. and Iran agreed to a two-week ceasefire and the reopening of the Strait of Hormuz.
What Is Project Terafab?
Last month, Musk unveiled SpaceX and Tesla’s plan for two advanced chip factories in Austin, Texas. They are prioritizing Terafab, a huge fabrication plant for massive chip output to power Tesla’s AI push amid booming demand.
One factory will supply chips for Tesla’s electric vehicles (EVs) and Optimus humanoid robots; the other will target AI data centers, including space-based ones. Musk aims for 1 terawatt of annual capacity, roughly double current U.S. production.
How Intel’s Partnership Helps Terafab
Terafab’s early stages will cost tens of billions and target state-of-the-art 2-nanometer chips, among the most advanced in semiconductor design and manufacturing. Producing these microchips is going to be challenging, which is where Intel steps in.
Intel’s proven expertise in designing, fabricating, and packaging will offload complex, time-intensive fab construction from SpaceX, Tesla, and xAI. Its involvement could avoid years of delays, while leveraging its U.S.-based facilities in Austin for faster production ramps and custom silicon tailored to Musk’s workloads.
What Is Tesla Stock Price Prediction?
Analysts remain cautious on Tesla’s long-term outlook. On TipRanks, TSLA has a Hold consensus rating based on 13 Buys, 11 Holds, and eight Sell ratings. The average Tesla price target of $393.97 implies 13.7% upside potential from current levels.
